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

Tyler Durden's picture

Submitted by Charles Hugh-Smith from Of Two Minds.

Today I present an important guest essay by long-time contributor Zeus Yiamouyiannis, who suggests that when debt is essentially fraudulent, then debt forgiveness is both the logical and the only remedy.

Endgame: When Debt is Fraud, Debt Forgiveness is the Last and Only Remedy, by Zeus Yiamouyiannis, Ph.D., copyright 2011.


Finally serious economists are considering a position I have been maintaining and writing about since the 2008 financial meltdown. Whatever its name— erasure, repudiation, abolishment, cancellation, jubilee—debt forgiveness, will have to eventually emerge forefront in global efforts to solve an ongoing systemic financial crisis.

“On a grand scale the only way to erase counterfeit money and (counterfeit) assets of hundreds of trillions of dollars is to erase the debts associated with those fake assets. (Let me underscore again, these are not “toxic” assets, they are fake assets.)… Forgiveness in general, and forgiveness of debt in particular, stand as virtues if they free us up to acknowledge, address, and learn from our culpability, start anew, and create forward.” (The Big Squeeze, Part 3: The Quiet Rebellion: Civil Disobedience, Local Markets, and Debt Erasure (January 29, 2011)

Debt forgiveness, therefore, accomplishes two important things. It eliminates the increasing and outsized portion of productive enterprise to pay off unproductive obligations, and it clears the ground for new opportunities, new thinking, invention, and entrepreneurialism. This is why the ability to declare bankruptcy is so essential in the pursuit of both happiness and innovation.

Currently we are mired in a “new normal” and calls for “austerity” which are nothing more than the delusional efforts of a status quo to avoid the consequences of its own error and fraud and to profit evermore. So bedazzled by the false wealth created by debt multiplication and its concomitant fantasy of ever-higher returns, this status quo continues to be stupidly amazed that people are not spending and that the economy is not picking up. But how could it be otherwise?

Productive wealth has been trapped in a web of parasitic theft, counterfeiting, liability evasion, non-regulation, and prosecutorial non-accountability. All the fundamental attributes of a functioning exchange economy have been warped to reward creative criminals. I spoke extensively about this in my posts from 2008. (Imaginary Worth, Empire of Debt: How Modern Finance Created Its Own Downfall (October 15, 2008)

The unsustainable nature of debt

Two observations: 1) Fabricated/parasitic so-called “wealth” destroys value by diluting the value of productive wealth. 2) Debt/credit that cannot be paid back is never an asset and is always a hot-potato liability (needing to be foisted to a greater fool to garner “profit” and transaction fees):

“The models [modern debt are] based upon had no contact with reality. They assumed unlimited growth and ability to pay. When matched against the reality of people paying ten times their salary for mortgages that actually added more money owed to their principal (i.e. with negative amortization), required no money down, and set up “balloon payments,” large step-ups in payments after a few years) there is no possible way they could NOT default in a predictable span of time.” (Part II: How the Credit Default Swap Scam Works (October 13, 2008)

Systemically, all debt that charges a percentage (“usury”) originates in delusion. Debt grows exponentially indefinitely, growth (income and otherwise) cannot. This leads to a widening condition where the fruits of productive “growth” devoted to interest payments increase until those fruits are entirely consumed. (The Elephant In The Room: Debt Grows Exponentially, While Economies Only Grow In An S-Curve (Washington's Blog)

Once this happens, stores of wealth (hard assets) begin to be cannibalized to make up for the difference. You see this in Greece with its sale of public assets to private companies, and in middle-class America where people are liquidating retirement accounts to pay for their cost of living.

This problem is compounded by a private Federal Reserve that lends money into circulation at interest, and then allows the multiplication of this consumer debt-money liability through fractional reserve banking. The money in circulation today could pay only a small fraction of the total private and public debt. That fact alone is evidence of a kind of systemic fraud. “If you just work hard enough, save, and make sensible decisions, you can get out of debt” could only physically work for a bare fraction of the population, given the money-to-debt ratio. The rest would have to simply default to clear the boards.

This is why debt forgiveness makes not only moral but rational, mathematical sense. Finances require balancing to be coherent. There must be some way to redress systemic imbalance. One has to be able to “zero the scales” to get an accurate weight of value and to re-establish healthy value creation.

Voices in the debate

Some analysts are beginning to see the forest through the trees in terms of debt forgiveness. Steve Keen, Australian economist and current deflationist, and Michael Hudson, American economic contrarian and prescient essayist, are both using clear-sighted reality-based financial analysis to debunk accounting games that obscure the untenable debt situation and to call for debt forgiveness.

How can selling sovereign assets and imposing austerity on Greek citizens (taking money out of their hands through higher taxes and lower benefits) do anything other than hollow out value and contract the Greek economy in the face of a deep global recession? Michael Hudson: It can’t. Greece’s debt needs to be written off.

“It seems unreasonable and unrealistic to expect that large sectors of the New European population can be made subject to salary garnishment throughout their lives, reducing them to a lifetime of debt peonage… (T)he only way to resolve it is to negotiate a debt write-off…” (The Coming European Debt Wars: EU Countries sinking into Depression (Michael Hudson, Global Research, April 9, 2010)

("[We’ll Have] a Never-Ending Depression Unless We Repudiate the Debt, Which Never Should Have Been Extended In The First Place" (Washington's Blog)

Why isn’t “quantitative easing” and flooding the U.S. economy with debt-money working to prime borrowing and lending? Steve Keen: Because the money is going into deleveraging in a time of overextension:

“Bernanke is throwing (a) trillion dollars into the system. Rather than that leading to ten trillion dollars of additional credit money, creating the inflation people are expecting, that trillion dollars is all that goes in, and people deleveraging actually reduce their level of spending by more than a trillion dollars by trying to pay their debt down, and it cancels out what the government is trying to do… We need a 21st century jubilee.” (On the Edge with . . . Steve Keen (Max Keiser, video)

Other well-known commentators are not seeing the debt forest at all. In their contentious debates over deflation and inflation, neither Rick Ackerman nor Gonzalo Lira seem to be aware of the overwhelmingly fraudulent nature of present global debt-- including the 600 to 1,000 trillion dollars of fabricated notional wealth represented by the derivatives markets, fraudclosure, and a host of other sources.

Rick Ackerman: “’Ultimately, every penny of every debt must be paid — if not by the borrower, then by the lender.’ Inflationists and deflationists implicitly agree on this point… and we differ only on the question of who, borrower or lender, will take the hit.” (Let’s Think This Through Together....)

I posted a pithy response in the comment section:

“Both Rick and Gonzalo left out the obvious third way--debt forgiveness. No… debt does not have to be paid by someone; it can be absolved, especially debt created upon fraudulent and/or counterfeit-ridden practice… (D)erivatives are not real wealth, and neither was the ostensible climb in the values of housing resting in large part on those phony-wealth derivatives.

The only “real wealth” here revolves around ability to produce real and needed goods (to allow us to survive), and the ability to create something that increases one’s quality of life (to promote our thriving). Precious little of the present global economy involves either one of these. Yeah, if we use FASB standards and Goldman Sachs accounting, we can pretend our worthless junk is all really simply very rare, “unique condition” collectibles worth trillions of dollars.

I’ve got a better idea. Take our financial junk out of the global attic in boxes, put them out on the front lawn, and see if anyone wants to pay a few bucks for the various items, give away the leftovers to anyone interested passing on the sidewalk, and recycle, donate, or dispose of the rest. It’s a moving sale, and if our economy is going to get moving, maybe we ought to have one.” (Zeus Yiamouyiannis April 6, 2011 at 4:11 pm)

How it might play out

This subtle debt extortion creates a system of never-ending debt-slavery for a vast majority of the population. When this “manageable” slavery is aggravated by a desire to use hardship to extort ever greater assets from the overburdened at ever cheaper prices (what Naomi Klein calls “disaster capitalism”), by open and unapologetic widespread fraud, and by the unjust offloading of risk and liability to taxpayers who had nothing to do with poor decisions of private banks, then the systemic abuse is revealed in the daily lives of citizens.

Debt creates scarcity, which stimulates fear, which drives manic competition, which favors opportunism, collusion, and concentrations of power, which translates to abuse, which results in a collapse of legitimacy for the economic system. Overreach causes a breaking point, and we are getting close to it. Will the response be warfare, taxpayer revolt, political upheaval, mass default, debt forgiveness, something other, some combination? I have predicted pockets of violence would be mixed with some softer combination of taxpayer revolt, mass default, political upheaval, and debt forgiveness, along with a return to community exchange to meet basic needs. (The Big Squeeze, Part 3: The Quiet Rebellion: Civil Disobedience, Local Markets, and Debt Erasure (January 29, 2011)

This possibility of epic reprisal may very well compel banks to come to the table around debt forgiveness to avoid violent backlash and criminal prosecution, even over preserving their gravy train companies. The bitter irony of these companies and their galloping greed is that they ended up victimizing each other by selling junk to each other and extracting all the real value in salary and bonuses. Their assets rest on notional values, that when unmasked would drive each into immediate insolvency. They have simply been scam artists, producing little value and extracting mountains of money.

What might this look like? Looking at present trends and using the very useful framework of Kubler-Ross’s stages of grief, it might go something like this…

Average debtor:

1) Denial: Liquidate savings to pay for over-priced house and cost of living.
2) Anger and fear: Exhaust resources, experience want, compounded by austerity measures.
3) Bargaining: Attempt to negotiate with bank through HAMP and other mechanisms to lower payments. Banks don 't bite and even have incentives to foreclose.
4) Depression: Lose/default on the house and move in with family or cheap rental.
5) Find out life is better without being a debt slave and spend more time with community and the ones you love.


1) Denial: Collect 144 billion in bonuses after financial collapse and laugh as not a single trading day loss arises for zombie TBTF banks completely subsidized by governments.
2) Anger: Express false righteousness, indignation, and hubris over even modest/toothless demands/regulations attempted to be placed on them by governments. Exhibit sadistic zeal at being able to simply claim you own and liquidate properties they have no clear title to.
3) Bargaining: Experience dawning awareness that may have just cooked your own gooses as strategic defaults skyrocket, populist demands to prosecute fraudclosure gain traction, and quantitative easing ad infinitum dwindles and fails to keep stock prices artificially aloft. Improvise panicked attempts to "be reasonable" and actually negotiate, once the asset and money flow well runs dry.
4) Depression: Contemplate and realize possible bankruptcy by big banks. Retreat to the Hamptons to hire criminal defense lawyers, contemplate empty life, and shoulder the abuse of media and contempt of a global citizenry.
5) Acceptance: Trying to regain "good guy" status and avoid criminal prosecution by agreeing to be part of debt forgiveness.

Once defaults happen in increasing numbers and certain asset prices plunge (i.e. real estate), what will initially look like a bonanza for capitalist parasites could easily get out of hand, with people either unable or unwilling to buy inventory even at greatly reduced prices. Profits would tank at banks, liabilities would skyrocket even with most of it transferred to government guarantee. Because no one plays the game anymore, banks could go under as well, as people rise to vote out bank-friendly politicians and simply refuse to pay. This unraveling could easily force exposure of the notional value of derivatives in banks as worthless, meaning they are as bankrupt as the people they exploited. At this point, there will be a common desire and need to simply "forgive" the debts and try to find some way to distribute these empty homes.


Debt forgiveness simply calls out either the inherent systemic inability to make good on debts or the recognition that debt was produced through fraudulent means. In the present situation, both conditions obtain. There has likely been no point in world history where debt forgiveness has been so comprehensively merited. The only speculation from my point (barring world-wide global feudalism and eternal debt slavery) is whether we will initiate such forgiveness or be forced into it.

Thank you, Zeus, for this prescient and insightful analysis of debt and debt renunciation.The Kondratieff Cycle can only turn to Spring after debt renunciation completes the Winter cycle. Let's stop pretending we're still in Summer, and that the Fed's puny "quantitative easing" and monetary cargo-cult machinations can reverse the seasons.

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takeaction's picture

This guy describes the GAME perfectly.....You have to see this guy.  He calls it right. Take the time to watch...well worth it!  Please watch all the way....Last 2 minutes..EPIC!

takeaction's picture

Just clicked the start of a couple...Nice.  Thanks.  Marked for later viewing!


MarcusLCrassus's picture

Yes, this guy is the real deal.  Sounds like he hit a little too close to home for some.

He basically says that the only way to fix the system is to re-write all the laws so that things the banksers do that are technically legal to do are made illegal.  The fact that they basically wrote these laws in the first place has resulted in them being able to get away with financial terrorism because the financial terrorism that they commit on a daily basis is still technically legal.  Just nationalizing the Fed won't do the trick as the Fed is just an instrument of the banking machinery as a whole. 

john39's picture

impossible.  it would be like unscrambling eggs.  besides, they control all the resources and buy off all the politicians.  common people have enough trouble just keeping a roof over their heads and feeding their kids.  this ends in blood, or enslavement...  or some of both.

LawsofPhysics's picture

"they control all the resources"


LOL!  Not according to many oilfield and natgas workers my brother and I know.  During a crisis, possession is the law my friend and aside from bricks and concrete I don't see much of anything of value in NY city.  You should also realize that many of those resource-rich states have the majority of the volunteers for the armed forces.  In the end, the military leaders will most likely sort this one out.

john39's picture

agree with the gist of what you are saying... but, your proposed course of action also requires a repudiation of the legal system entirely.  because there is no way to fix this mess inside the system as it exists today.  to pass a simple law takes a huge expensive effort, and they control the process.  in other words, the legistlative and court systems are dead ends for real change.   what you are suggesting is more along the lines of the "blood" I also had in mind.  if you don't get rid of the legal system, everything that you propose is "illegal" and will be overtuned.  

i too have wondered for awhile when the military guys would figure out that they are being used to fight wars that do serve the constitution or the american people, but rather international bankers, corporations and foreign powers?  guys at the top must know, and must have sold out...  maybe a coup a the colonel level... isn't that how it usually goes down.

LawsofPhysics's picture

"but, your proposed course of action also requires a repudiation of the legal system entirely."


LOL!!!!  Like this hasn't happened already.  Thanks for sending me out of my chair with laughter!

john39's picture

yeah, by them.  you try it and let me know how it goes.   the kings of kings were never bound by the legal system, that's just for the proles.  didn't think that needed to be mentioned.

ussa's picture

Your senior military leaders are chosen because they buy into this philosophy. 

Good luck effectively coordinating battalion level commanders across air/ground/sea assets.  Most of these leaders are focused on proficiency and effectiveness at the uniti level and have very little perspective of debt has money and its broader implications for debt slavery and political control.  They are also wise enough to know or at least be extremely wary of the terrible consequences of military intervention in the US political system. 

Bottom line:  Don't depend on the oath to the constitution any three or four star has made to rid the country of the debt based money system.   Many have bought into the system and were selected because of that belief or are too focused on military duties and missions.

ussa's picture

Your senior military leaders are chosen because they buy into this philosophy. 

Good luck effectively coordinating battalion level commanders across air/ground/sea assets.  Most of these leaders are focused on proficiency and effectiveness at the uniti level and have very little perspective of debt has money and its broader implications for debt slavery and political control.  They are also wise enough to know or at least be extremely wary of the terrible consequences of military intervention in the US political system. 

Bottom line:  Don't depend on the oath to the constitution any three or four star has made to rid the country of the debt based money system.   Many have bought into the system and were selected because of that belief or are too focused on military duties and missions.

Prometheus418's picture

Bullseye, LoP.

While the very sophisticated and well-dressed DBs in NYC might look down on me and mine from their ivory towers, the fact remains that we do not now, and have never in the past, needed to sell them our corn, cheese and beef at firesale prices.  

The heartland provides a public service to the United States, and for decades we have been at a Nash equilibrium.  We provide the food and bottled water for your cesspools, and you provide the toys and innovative flavored coffees.  It used to be a win/win, because, quite frankly, cows are boring and we needed distraction.

But now?  You're a bunch of track-suit wearing, canoli eating fat SOBs who couldn't toss a hay bale to save your pathetic lives.  We don't have to fight you, you'll die on your own when the food supply dries up.  

If a million farmers, and the remaining blue-collar production workers change their names to Galt, you, so solly, are fucked with a capital "F."

We have clean air, clean water, and airable land.  We have moral fiber and muscles that have not yet atrophied.  I can nab iron ore off the surface of the ground with a magnet.  We have oil sand, and a spanking new plant to process it that can be seen from ten miles away.  

Take off your Gucci loafers, and join us.  We all used to be Americans, and god-willing, we might be again someday.  The time has long since passed when everyone needed to STFU, get in the boat, and row- nobody can match the American people, wherever such may still be found.  Unfortunately, Americans are a dying breed- but maybe some of you bitchez can be rehabilitated.

Then again, I've have a couple this evening, and maybe I'm just picking a fight for the sake of it.  

Nawww.... Fuck ya.  Stop whining and get back to work- TANSTAAFL, Bitchez.

bigkahuna's picture

This ends with enslavement. We are already enslaved-it will go lower though. The problem is that people do not realize that there has been a coup and they are even now being conditioned to accept the brunt of the impact of the coup-so when it comes, we will all just go along to get along. The whole situation is ripe for the financial endgame and it has been for a couple years now.

Bob's picture

We may have a SkyNet situation, Sir!

andybev01's picture

The notion of "unscrambling eggs" isn't what they are talking about.

They want to throw out the eggs altogether and start with new ones.

macholatte's picture

to re-write all the laws so that things the banksers do that are technically legal to do are made illegal. 

what they do WAS illegal

Please review Glass-Steagall Act which was repealled by Clinton and the Gang of 3 (,16641,19990215,00.html

look here to start:



macholatte's picture

RE: Debt Forgiveness

Isn't there a well known procedure for that already in place called bankruptcy?

So what's to debate? What's with all the chatter? It ain't going to happen and that's the way it is unless a new and refreshing way to screw the tax payers is invented.


Right now I'm having amnesia and deja vu at the same time.
Steven Wright


lynnybee's picture

scam of the century / criminals of the year ........ print money out of thin air, charge interest / IT'S CALLED USERY .     & it's a deliberate take-down.    

john39's picture

good vids thanks.  He does seem to get it...  especially from a broader perspective that looks beyond economics. 

reader2010's picture

Damon Vrabel is the dude that put all this exellent body of work up on his web site.   Perhaps he got initimated by the Power ,and as the result he refused to publish any new stuff since January 2011. 


here is what he said:

SirPlayomic's picture

Thanks for linking those, this guy is really speaking from the heart.

trav7777's picture

on the other side of all of those debts is someone treating that as income.

So wtf, you're going to fuck EVERYbody who was productive out of their savings while giving the freeloaders yet another pass, and the banksters get to walk away and keep all their commissions.

Repudiate the banks, not everyone else.

Highrev's picture

Moral Hazard raised to infinity!

("Repudiate the banks" and the freeloading debtors.)

Oh regional Indian's picture

Highrev, your avaatar picture always make sme smile. Always. :-)

I say Repudiate the system, Politics, Banking and Supermarket Food Chains for starters anyways.

Collectively, we can starve the beast. But collectively, we suck. Always greedy brothers and sisters to jump in and take advantage. Which si really why we are where we are.

I know some advertising types who think they are doing god's work too.


GoinFawr's picture

Aren't the banksters composed mostly of old white males, your favoured demographic for the master race?

The acute dementia you suffer from must make coping day to day very difficult indeed, my sympathies.

A.W.E.S.O.M.-O 4000's picture

I think by "fuck everybody" he means the richest 1% of the planet

Incubus's picture

And that would be correct; we are units of labor--we are 'humanoids' that supply the 'humans' with the only thing we're good for: our labor. By design, your "common" man is but a creature that will never rise to the top tier of Maslow's hierarchy.  We consume and produce and exist for the sake of those who are "at the top."  We're concerned over things of no consequence; we're lesser animals that're domesticated in a social farm system.

You're born, you exist; you're conditioned by your relative social system, you work, you fuck, you create little future units of labor, you condition your little future units of labor, they start to work to support the system, and you're free to die.  That's your purpose--that's our purpose. 

GoinFawr's picture

I just knew I'd heard that somewhere before:

"You saved my life, and in return I'll spare yours... for now."-Jean-Baptiste Emanuel Zorg

sun tzu's picture

dem old whiteys beez racist n sheeit muhfug

Prometheus418's picture

"Aren't the banksters composed mostly of old white males, your favoured demographic for the master race?

The acute dementia you suffer from must make coping day to day very difficult indeed, my sympathies."

Please present a case in which modern society was not conceptualized, designed, and built by "old white males."  

I don't give a shit about "persecuting" anyone, but come on- let's have some credit where credit is due.  Just because other people did not do something is not a reason to demonize the people who did.  Tired of working myself to death so that others can feel they get their fucking welfare as a "right," because they think I did something that forced them to smoke dope and wear pants that don't fit instead of reading books and learning some manners (and yes, this sadly includes all kinds of white kids, too.)

SystemsGuy's picture

Repudiate the banks, repudiate everyone else. A jubilee is a reset - contracts get renegotiated, and as with any such negotiation, the rebalancing point will need to meet both the lender and the borrower's requirements. Lawyers make out like bandits for a few years, but for once they'll be earning their money facilitating the rebalance rather than making it worse. Jubilee doesn't mean that creditors lose everything, only that they will have to come to the table and will likely potentially lose some. As the creditors are the ones overall that have the advantage here, that's only reasonable. It also means that having secured better terms for their debt, borrowers are more legally obligated to pay off that debt - bankruptcy is likely not an option for several years.

Re-regulating the system would help here as well. The primary challenge that this economy faces is that risk has, through various financial shenanigans, been transferred from those taking the risk to those who benefit least from that risk when it goes bad. The purpose of regulation is to insure that the consequences of risk, good and bad, remain with those who take those risks. People who complain about government regulation fail to realize this very important role of the regulator.

The suggestions above make sense - renegotiate unfair contracts while insuring those who have taken those risks are responsible for their own actions. The creditor gets to keep what he's made, the debtor (as a risk taker) has a more realistic balance moving forward but cannot take back what he's already spent.

topcallingtroll's picture

I dont trust the people who will be appointed to be the deciders on what is fair and unfair debt.

sun tzu's picture

We're supposed to leave it up to lawyers to decide who gets what? During the process, the lawyers will grab a huge chunk of the assets for their work?  Sure, because we all know that lawyers are the most honest people out there and they couldn't be influenced by bribes and kickbacks. 

CrashisOptimistic's picture

Pretty much, t.

All these articles and comments looking for principal forgiveness never ever address handing money to people who paid off their mortgage.

These are just self serving drivel pieces that solve nothing.

A preliminary attack would be to declare activities to be fraud.  Fraud is the trigger for clawbacks under NY state law.

Until clawback enters the discussion, they arent' going to back off.

And until bullets start entering skulls, they aren't going to reverse anything.

AE911Truth's picture

Dear trav777, ref: "on the other side of all of those debts is someone treating that as income.
So wtf, you're going to fuck EVERYbody who was productive out of their savings"

If you are on the other side of all those debts, GET OUT NOW, before you find yourself broke. Those debts can not be repaid.

caerus's picture

pain is my element as hate is thine;

ye rend me now: i care not.

Hugh_Jorgan's picture

It is nice to point out the obvious despicable fraud, but a blanket remedy like debt forgiveness is not equal justice. ESPECIALLY when we have a greedy entitlement class willing to kill for a new teat to suckle at. They are just as out of control as the filthy, thieving ruling class and there are A LOT more of them. The responsible moral people and their children in America will end up footing the bill for something ridiculous like this, mark these words. We MUST think carefully about what we ask for...

V10's picture

Be eaten by the bankster class, or be eaten by the welfare class.

Yeah, some choice...

JW n FL's picture


takeaction ,

my response to Mr. Answers.

"you should be the decider.. just like Bush!! you should decide who is and who is NOT worthy..

Children should be born with wisedom.. is what you are saying and they the chirldren should be shunned until are educated and at least 40 years old.

that will fix everything! You are Brilliant!"

Everyone has to be educated, no one is born with the knowledge needed to effect change in this pysop world.

People will grow at the speed allowable, they will comprehend as fast as they can..

There should only be support for any on the path no matter how far along they are or are not.

This semi-perfection that is needed before someone is worthy is poppycock!

JW n FL's picture



a real smart girl said these words the other day and they have stuck with me..

who's your farmer? _________________________

who's your banker? _________________________

where's your money? _______________________

she warned of the housing problems.. she was the head of Department of Housing under Bush.

Fitts served as managing director and member of the board of directors of the Wall Street investment bank Dillon, Read & Co. Inc., as Assistant Secretary of Housing and Federal Housing[1] Commissioner at the United States Department of Housing and Urban Development in the first Bush Administration, and was the president of Hamilton Securities Group, Inc., an investment bank and financial software developer.

Taint Boil's picture



This guy has it right. Got screwed and screwed them back:

(Sorry for always posting this but it is a funny story).

nope-1004's picture



This is why the ability to declare bankruptcy is so essential in the pursuit of both happiness and innovation.

Not in the vocab of the snake oil salesman.

MS7's picture

I tried to add a +1 but for some reason it is not working on your comment. (it works on other comments.) So let me just say I agree.

andybev01's picture

You're right.

I gave you a green flag for his comment.


Pass it on :-)

Seer's picture

We've essentially forgiven the debts by the banks, and look at what That's done!

Sorry, but as much as I think that this is the only way that things will end I'm not thinking that it does anything to set the tables for better social conduct (reducing the notion that one has to honor one's debts only encourages continued moral decline).

Bring the Gold's picture

The problem is that debt forgiveness or debt forgiveness by another name, inflation/bailouts, have thus far been one sided. Only the banks have been bailed out or had debts forgiven/inflated away. This of course is the road to tyranny.

A global debt reset on the other hand would have potential benefits. Certainly debt created through fraud should be forgiven and most of that is Joe 6-pack debt whether through pension funds getting screwed with MBS or fraudulently presented home loans where details where misrepresented by mortgage salesmen making commission.

Moral decline is a joke at this point. Moral decline is caused by the current status quo of Banksters defrauding with impunity and the protection of this behavior by the political class and related injustices by politicos. People want to whine about J6P moral decline not noticing that the rot started at the head of the fish not the tail.

trav7777's picture

what about ALL of the pensions all over who have been CONNED by the banksters into exchaging something real for a bogus debt that was all whitewashed by the rest of the banking racket?  And probably the pension manager or elected officials took a bribe to close the deal?

You have REAL counties and REAL cities selling REAL assets to fucking bankers to attempt to repay debts...but if the municipality defaults, the citizens who received no benefit from all the debt end up getting all the burden too.  And what about the muni bondholders on the other side, all the pensioners who traded real money to bankers for those bonds?

Iceland is a nation that refused to backstop the debts of its private bank and look at what the Euro powers have tried to do to them...

cossack55's picture

I love Iceland. Just wait till Katla speaks. Fuck the IMF, WB, ECB and the Fed.

trav7777's picture

I was just there actually.

Again, I saw an economic collapse that looked NOTHING WHATSOEVER like what the silver and canned ham stacking madmax morons predict one should look like.  I have a souvenir drawer now with lots of funny colored banknotes with lots of zeroes on them and I am YET to see anything resembling the starving zombie hordes that were supposed to be the inevitable outcome from this sort of thing.

The icelanders are putting up greenhouses to grow their own produce and selling tourism as hard as they can.