End Game

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:

Endgame: When Debt Is Fraud, Debt Forgiveness Is The Last And Only Remedy

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.

Endgame: When Debt Is Fraud, Debt Forgiveness Is The Last And Only Remedy


About Charles Eisenstein

I am the author of The Ascent of Humanity and Sacred Economics. I am also a public speaker and member of the faculty of Goddard College.
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5 Responses to End Game

  1. Paula says:

    Wow! I was just thinking about the empty neighborhoods in my community and how dishonest it feels to see old ladies being kicked out for not being able to pay mortgages with ridiculous balloon interests, while the banks then short-sale the same house (after making sure the people buying the house have no relation with previous owner) for a fraction of what the previous owner owed. The house I will be renting is such a case, and I wish I could have the lady stay in the house while we pay the rent, but for some reason I don’t understand it’s illegal. BUT it’s legal to kick out a lady who just lost her husband and thus her only income to afford the house. I don’t get it. What would have happened if instead of bailing out the banks, the government would have taken all the properties titles and given them to the property owners? The neighborhoods wouldn’t be empty, people wouldn’t be forced to move, and those struggling with job search wouldn’t also have to worry about becoming homeless. I don’t know about economics but this is how I feel. I lost my house, and we’re struggling to make it on 1 income… in a nation of a lot of people in the same situation, this will stop eventually. It just can’t go on like this.

    • I think more and more people are going to ask similar questions. It is just so insane.
      I monitor some financial websites and some people react quite vehemently to the idea of giving the titles to the property owners. They say, “Why should some freeloading irresponsible person get his house for free, when I have been responsibly saving and sacrificing and acting prudently?”
      This is a kind of stinginess, a kind of scarcity mentality. The time is coming when those who are more successful, luckier, smarter, better educate, more privileged, or whatever will desire to share.

      • Hermes says:

        Its a projection of their own disatisfaction within Self that they fell for the game. From the bottom to the top its fraudulent…if you even begin researching the LAW, you will understand the duplicitous nature from the core of our sociological agreement with a government. Its corrupt from within because so are we…when we accept our responsibility to this system then perhaps we can see the light leading out…

  2. Harlan Wallner says:

    Charles, have you tried writing for any economics sites? Now that you’re published in the field, you technically have some credentials. I know most of them are more conventional and conservative than your writing speaks to, but maybe that’s changing (I haven’t paid them any mind in a few years so I don’t know). It just seems to me that if they’re talking about things you agree with almost completely, maybe they’re ready for the next step towards sanity. It seems that would be a forum which would appreciate those the deep economic insights that go over the heads of those of us who aren’t economists, while also getting your other visions out.

    • Toby says:

      Good suggestion. And actually, the other day David Graeber was interviewed on Naked Capitalism. A very interesting interview. And his book is excellent (“Debt: The first 5,000 years”). I suggested on that thread that Charles be interviewed. His plan is clear, viable and tunable. It needs plenty of air time. And I believe, despite the vehemence Charles mentions above, that there is a very clear softening happening that is almost palpable. It’s demanded by the maths of the ponzi, but the effect is nevertheless beautiful. There’s just something deeply replenishing about relinquishing an attitude of fear and scarcity, no matter what the initiator.

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