Setting the People Free From Economic Slavery and Debt
Nevermind. My math was so off. It would take multiple trillions of dollars to buy the US citizenry out of debt. The idea was good, but the only way it would work is if there is a total government collapse and the dollar becomes worthless. What follows was my assumption that giving each adult $100,000 or so would restabilize the economy and it would cost less than the 700 billion Congress is considering to save the banking system….
As I pointed out in my previous article, Gods Controversy with Capitalism: Usury, Corporations, and a Cry for Economic Justice, a major reason for our current economic crisis was the willingness of the banking system to put the the average American into unsustainable and perpetual debt through credit card and mortgage lending. Unlike Biblical capitalism, where every single person was to be released from all debt every 7 years, Western capitalism has no such re-balancing. Any person can be forced into economic servitude for life.
The 7 year release from debt was called a Sabbatical Year, but every 49 years (7 times 7) was the Jubilee, which was celebrated as a total restoration of the land the people and release from all debts.
While Congress and the banking interests are bellyaching and ballyhooing for a 700 billion dollar bailout, there is a much more simple and less costly alternative which would fix everything: a Jubilee.
For every adult male or female 18 years or older, who is a US Citizen*, ireland give them $250,000 dollars ($500,000 per couple) out of the treasury with the restrictions that it must all be used first to pay off all debts, mortgages, credit card loans, etc. And the balance of that which is not used to pay off debts must be kept in savings for a minimum of 2 years , whether that be in CD’s, Savings Accounts, Treasuries, or Bonds (no stocks). If any of that surplus money is used to buy anything (except to finance education), it is taxed at 50%. However, the interest earned on the money could be used for purchases and would be taxed as ordinary income.
This Jubilee plan would bring an immediate end to the mortgage crisis and to the banking crisis. Almost all mortgage backed securities, CDO’s and SIV’s would immediately become solvent, and the banks would not have to write down or write off those assets. Banks would be shorn up by receiving large deposits. Savings would be encouraged, and although they could be moved between savings accounts and CD’s, e.g., they would not be withdrawn or spent frivolously.
For $300 billion, we have solved the economic crisis, released the citizenry from debt, and restored the banking system. Plus, the Fed could raise interest rates to strengthen the dollar and quell potential inflation.
Jefferis Kent Peterson
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