I was gathering my thoughts concerning the Year of Jubilee and how it might relate to today’s problems with the banks and the mortgage crisis and then found this address listed in a comments section at a newspaper site. I believe the writer has proposed a valid and maybe even Biblical method to address this crisis. His plan is sound,simple and should be put in place ASAP. I can not improve on it so I post it here as written by Samuel Margolies.
My one commit and belief is that an idea or revelation is often given by God to one person and then becomes available to all that will accept it, so all of us need to be open to accepting what may at first glance be out side the box of our normal way of thinking.
Debt Realignment - By Law Done Only Once
Worldwide, we are in an extreme circumstance financially and economically. Debt realignment offers a moral, pragmatic, available means to end the debt that plagues the world and restricts the use of resources and credit. Debt is a burden on people, resources, time, and capital. Deficit spending is sometimes necessary. Events happen, circumstances change, emergencies occur. A country must have full utility of its assets. This is only one reason why a robust economy is so crucial. But when the debt becomes so large, and the only strategy is to look the other way and hope something positive will happen in the future -- and nothing happens, the debt just keeps getting bigger over the years, it needs to be addressed. And with the present financial crises worldwide, it is obvious some means needs to be put in place to end this as quickly as possible and get the world economy back on track. Global debt realignment will enable a better track, however, wider, smoother, more efficient with avenues, venues, and projects we only dream about now, and some we have yet to consider. In each country all projects can be funded, and the global financial meltdown is vanquished at the same time. What is hoped is that once on the other side of debt realignment we learn from the past and do not repeat the same mistakes. This crisis is an opportunity. If it is taken.
Proposal:
It is proposed that an Economic Summit be called among the nations of the world. At this Summit, with agreement among all national executives, legislatures, and central banks that this be done only once, by law, it shall be ordered by all governments that in all ledgers, all balance sheets, all accounts in the computers around the world, and on the books of all central banks and institutions that all debt be transferred as an asset, as a credit, to all creditor's accounts in their respective banks either in real terms, or as a ratio of the present debt, to be determined, to get all on an even playing field as of January 1, 2009. If this is done in present real terms, or as a ratio, this means currencies will have to be realigned also if not doing so would promote inflation. Negotiations and discussions on this obviously will have to take place among the nations. This writing provides the direction, the outline, hopefully the impetus for this to be a reality. The specifics shall be determined by the various experts of different countries, the executive branches, and the central banks at the Summit.
The goal is zero global debt among nations. The Summit should occur before the end of 2008 with the debt realignment event date being in the first part of 2009. The sooner the better. If the Summit can occur quickly the event date actualizing debt realignment can be January 1, 2009. It can be done. It takes vision. It takes courage. It takes effort. It takes leadership. The European Union has also suggested a Summit, but at a Summit there must be a global plan that will work.
The world would welcome a plan that will work. This plan will work.
All creditors receive payment.
All debt of nations will be released and all debtor nations released from their obligations. All holders of national debt will be credited.
No one loses anything but the debt. No one suffers. The creditor nations and international banks get asset capital on their ledgers. The debtor nations lose their debt -- worldwide. This is not debt forgiveness. No one loses. This is the essence of debt realignment.
A new balance sheet in each institution is started with oversight and regulations in place, and with a new awareness of the pitfalls of wanton speculation and poor regulation. Nations are free to prosper. People can advance. Everyone is free to put their house in order. Nations can fully focus and fund the climate challenge, put their people to work, prosper. The world can advance.
Example:
A country owes 200 billion dollars to the World Bank. Authorization is given to the World Bank to put on its books 200 billion in credit, 100%, or a ratio to be determined, derived from the debtor country's debt. Since this is being done worldwide negotiations on this may be necessary, though not mandatory, to also align currencies. The debtor country's debt is transferred as a credit. The debtor country owes no debt. The bank has credit to loan. The country is free from the debt. This can be repeated with every country, the poor and the rich. Countries are free "to promote the general welfare" without the burden of debt.
Example:
America owes over a trillion dollars in Treasury Bills to different countries. It is agreed that the holders of these bills be realigned as a credit in the amount of the debts in the bank where the debt is on the balance sheet as a debit. The executive branch, legislature, and central bank authorizes credit to the Treasury account with the outstanding debt balance as a credit. The Treasury Bills are paid off. Interest payments cease. Resources are freed. Debt is gone. We move on. It is simple. But simplicity is what we need now. We do not need wild loans putting more debt and bondage on people, resources, and countries. What if a country or fund does not want to cash in its notes? The debtor's bank -- not a debtor now -- holds the credits in its account until such time as demand is made or maturity is reached. In any event the governmental debt will equal zero after debt realignment with credits available on the balance sheet.
Precedent:
The ancient Hebrews handled massive debt every 50 years with a "Year of Jubilee," where "all were returned to their possessions." Leviticus XXV, The Old Testament.
Let us not be so sophisticated in our minds to think that there is nothing to learned from this. But this too is different from debt realignment, in that debts are not just forgiven, credits are assigned to the creditors. Debt realignment is the evolved model. With modern technology and banking expertise, it can be done. All we have to do is do it.
To be sure, the International Monetary Fund, the World Bank, and the separate Central Banks of the nations around the world will be much more comfortable, as will Wall Street, other markets, individual investors, and workers, if this is accomplished.
If I were calling the shots, I would do debt realignment across the boards, from top to bottom; that is, I would realign the debt of nations, companies, and individuals. That will provide ultimate freedom to individuals, companies, markets, nations, and the world for progress and prosperity. But getting global national debt realignment is difficult enough for most to understand and envision. Since this is an extraordinary circumstance and that debt realignment would be done only one time, it is hoped that our leaders, meeting together in an economic Summit, will go to the farthest.
Copyright 2008. Samuel Margolies. All rights reserved.
I received an email from Samuel.
Dear Mr. Charles:
Thank you for your comments and for your realizations. I heartily endorse your putting the link to my web site on yours. I have contacted world leaders, members of Congress, the Federal Reserve, and the Treasury with this idea. But as of yet they do not see what I have been getting at. It is difficult for people who think in complexities and have specializations to go outside their areas of expertise and grasp other ideas, particularly when an idea is a simple one. Humankind seems to want to make everything more complex than it needs to be.
I have made the analogy of what happens when a computer freezes up. We have no recourse but to turn off the power and then back on rebooting the system. Likewise, I believe we have to reboot the financial and economic systems of the world. Whether this occurs as I have forwarded remains to be seen.
I do not know what site you first saw my comment on, but on several I have recommended reading Barbara Tuchman's book, "The March of Folly," where Ms. Tuchman asks the questions of why leaders so often in history have made decisions that were contrary to the best interests of their constituents? This is more common than realized. In no other time was it more important that America choose the correct course. We have many challenges. We must meet each with the best decision. And this is true globally. Why would we choose a course that would lead to difficulties and more toil than is necessary? I do not believe this is deliberate. I believe the people making the decisions simply do not see the options.
I do not know how far reaching your blog is. I do know that the more people who contact our representatives and world leaders the better the chance that acceptance and implementation of debt realignment can become a reality.
Obviously, you, like me, are a believer in God. When I first addressed the issue of our national debt, I was influenced by the "Year of Jubilee." Our systems have evolved from those ancient days and we know a great deal more about many of the variables. But some things are constant.
Our national debt, and the debt of the world's nations, must be solved one day. We will not grow out of it. The debt has become too large. I hope I have made the case for numbers as representations of reality and not the reality itself. If we are to believe that it is God's purpose to make people free, does this not also mean freedom from debt, particularly overriding, overwhelming debt, which we cannot work or grow out of when we consider all the variables worldwide that are present in today's global economy?
But even if one were a strict secularist, if something works, why not use it? First, those making the decisions must see it. For them to see it , it must be shared and presented to them on many fronts. You have opened up another front, another forum for the dissemination of the idea of debt realignment. I really appreciate it. I have been alone for a long time with very little support. I do find it interesting that I do not get criticism though, I get silence. No one says it cannot work. No one. Just silence.
It may be that things will have to get worse before people are open to new ideas. This does not have to be.
There is no reason that humankind globally must go through possibly years of financial upheaval and difficulties when there is an idea that will work, one that will also enable humankind globally to enter a new age of progress.
Again thank you. And if you can get an email off to your representatives, to a media site, to world leaders to at least look at what I advocate, please do so. It would only take one world leader to see that debt realignment can be done and openly espouse it, sharing it, for its possibilities to become a reality.
Thank you and God Bless you in your work.
Respectfully,
Samuel Margolies
Thank you for your comments and for your realizations. I heartily endorse your putting the link to my web site on yours. I have contacted world leaders, members of Congress, the Federal Reserve, and the Treasury with this idea. But as of yet they do not see what I have been getting at. It is difficult for people who think in complexities and have specializations to go outside their areas of expertise and grasp other ideas, particularly when an idea is a simple one. Humankind seems to want to make everything more complex than it needs to be.
I have made the analogy of what happens when a computer freezes up. We have no recourse but to turn off the power and then back on rebooting the system. Likewise, I believe we have to reboot the financial and economic systems of the world. Whether this occurs as I have forwarded remains to be seen.
I do not know what site you first saw my comment on, but on several I have recommended reading Barbara Tuchman's book, "The March of Folly," where Ms. Tuchman asks the questions of why leaders so often in history have made decisions that were contrary to the best interests of their constituents? This is more common than realized. In no other time was it more important that America choose the correct course. We have many challenges. We must meet each with the best decision. And this is true globally. Why would we choose a course that would lead to difficulties and more toil than is necessary? I do not believe this is deliberate. I believe the people making the decisions simply do not see the options.
I do not know how far reaching your blog is. I do know that the more people who contact our representatives and world leaders the better the chance that acceptance and implementation of debt realignment can become a reality.
Obviously, you, like me, are a believer in God. When I first addressed the issue of our national debt, I was influenced by the "Year of Jubilee." Our systems have evolved from those ancient days and we know a great deal more about many of the variables. But some things are constant.
Our national debt, and the debt of the world's nations, must be solved one day. We will not grow out of it. The debt has become too large. I hope I have made the case for numbers as representations of reality and not the reality itself. If we are to believe that it is God's purpose to make people free, does this not also mean freedom from debt, particularly overriding, overwhelming debt, which we cannot work or grow out of when we consider all the variables worldwide that are present in today's global economy?
But even if one were a strict secularist, if something works, why not use it? First, those making the decisions must see it. For them to see it , it must be shared and presented to them on many fronts. You have opened up another front, another forum for the dissemination of the idea of debt realignment. I really appreciate it. I have been alone for a long time with very little support. I do find it interesting that I do not get criticism though, I get silence. No one says it cannot work. No one. Just silence.
It may be that things will have to get worse before people are open to new ideas. This does not have to be.
There is no reason that humankind globally must go through possibly years of financial upheaval and difficulties when there is an idea that will work, one that will also enable humankind globally to enter a new age of progress.
Again thank you. And if you can get an email off to your representatives, to a media site, to world leaders to at least look at what I advocate, please do so. It would only take one world leader to see that debt realignment can be done and openly espouse it, sharing it, for its possibilities to become a reality.
Thank you and God Bless you in your work.
Respectfully,
Samuel Margolies
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