A Coming Debt Jubilee (w/ Larry McDonald) | Interview | Real Vision™

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A Coming Debt Jubilee (w/ Larry McDonald) | Interview | Real Vision™

Transcript:
If you look back through the history of capitalism, there are what's called a debt-jubilee period. And there's a number of people that have been starting to-- Ray Dalio is kind of hinting at this.
But you're right, the left is rising and the right is rising, and the left, especially, is very anticreditor. So if you're in the left wing in Europe and you're a millennial, you see the baby boomers of Europe have saddled these countries with debt, and these young people are looking at this debt load and saying over time each year that goes by, I don't-- at some point, there's going to be a movement strong enough to walk away from that debt.
If you look back through the history of capitalism-- maybe you can explain a little bit too-- in the Bible there's references to debt jubilees. It's a debt reset, and I think that that's what we're heading to in the next-- I think anywhere between two to five years there will be some type of debt jubilee or debt reset.
I actually agree with that too. David Zervos has been talking about this as well. I think Japan's going to be the first place to look at it because they're more advanced with this whole debt cycle. And the point being is the central bank already owns and 60 odd percent of the debt. So at what point does the central bank in the next recession just end up owning all of the debt and then saying what debt? It's gone, right? That accounting trick--
What do they call it, a coin? You create a coin.
Yeah, whichever way it's done, that accounting trick is a debt jubilee, essentially, because you say to the government, OK, that debt's written off. Now the central bank own it. We'll call it quits.
There will be, obviously, some repercussions. What that is, it's probably the currency collapses.

[seanpatrick]

I have seen several videos that discusses the debt jubilee and i'm like, wow, how people were seeing this scenario potentially happen...and guess what...its happening.

[hazelmanser]

We can't wait that long, we need it now

[Kevin-xzjq]

Is there going to be a full length interview?

[gen-X-trader]

Land. Gold. Silver. Hard assets basically. Can only imagine what kind of appreciation they are going to see in this situation

[ClimbWales]

Two to five years, almost at the 2 year mark.

[carmangeek]

I agree a debt jubilee is the most likely outcome. The question is how will that affect different asset classes.

[leonw]

So if that's going to be the case, then why don't every last one of us just double down and mortgage ourselves to the hilt? Who cares if you don't have to pay it back.

[NathanRyanAllen]

2-5 years? No way. The globe can Japan their way around for another 20-30 years I'm sure.

[garybacher]

Is that going to be just for the government's or everybody

[sophrapsune]

Why forgive the debts of the asset-speculative classes?
This is just another way of privatising profits and nationalising losses.
It would create a political revolt.

[rickspalding]

2040. my guess. Everyone seems to guess too early. we had our chance in 2009. the corona virus is just tacking on faster the qe and low interest rates. Govts wouldnt do a jubilee until its the last straw, which to me is a ways off.

[bernardthefourth]

Bottom line there's a lot of dopes who think they have secure savings that don't.

[Guron]

In the case where the central bank owns all the debt and says it goes poof why would the currency collapse? Can someone explain?


You would think maybe it wouldn't collapse since japan still makes good shit that the world wants like cars, best bike parts, airbrushes etc etc.

[jasonhenn]

Guarantee of opportunities is capitalist democracy, guarantee of outcome is socialist

[nick]

What! Bankers giving up their strangle hold(debt) on the word? Yeah right

[MrGiggity]

All nonchalant, oh ya know probably the currency collapses lol welp!!!

[eduardocobian]

Baby boomers debt or a monetary system that is a complete scam?

[Asmodai]

The debt needs to be paid back. Borrowers knew the risks or ignored them when they accepted the terms of their loans. They can go bankrupt and suffer a depression while the savers can buy the assets and start a new recovery. There will be no debt forgiveness. Everything comes at a cost. Time to get acquainted with suffering and sacrifice. Savers have, now its time for their opportunities and thats by falling prices from deleveraging. Savers didn't sacrifice and suffer just for debts to be forgiven and no reward. That would be unforgivable.