Here is a really insightful post on Zero Hedge explaining why debt forgiveness is, sooner or later, in one form or another, inevitable. I agree with practically every word of its description of the dynamics of debt slavery and the money system:
As I describe in the book, there is a softer alternative, a fourth way, which is to monetize most or all debt with negative-interest (demurrage-charged) currency. That’s the basic idea, though it could be modified; for example, savings accounts, 501Ks and the like could, up to a certain amount, be converted into low-interest or zero-interest treasury bonds to ease the transition for retirees. But generally speaking, all consumer debt, credit card debt, student loans, business loans, municipal debt, state debt, and so on would be purchased outright by the Fed at their nominal value and forgiven. The same could be done with derivatives, though it would be more complicated. At the end, if you are a debtor today, you would owe nothing, yet the banks would remain solvent as well. However, instead of being able to continue profiting by reinvesting their newly acquired bailout cash in interest-bearing bonds, currency arbitrage, or foreign bonds, they would be stuck with a depreciating asset.
The time that the above article describes is coming soon, folks. Debts grow exponentially forever, but the economy does not and cannot on a finite planet. There is not much of earth left that we can convert into money. It is mathematically impossible for the debt Ponzi scheme to continue forever, but the longer it continues, the more impoverished our planet will become.
The social breakdown that is coming as debt service becomes unmanageable offers a unique opportunity to transition into a system that is aligned with the more beautiful world our hearts tell us is possible.