My Debt Cancellation hero is Professor Steve Keen of Australia.
He said in a recent video
1) We have the greatest level of debt to GDP to cancel in 500 years which means we are approaching the greatest Depression in 500 years. That means the greatest levels of Austerity unemployment, wage cuts, defaults, bankruptcies and starvation in 500 years in Europe, North America and the rest of the world. Of course if we followed Dr Keen’s advice on Debt Cancellation we know for a certainty: ‘This need not be.’
2) The nations which have been deindustrialized (emphasis on America) will face the hardest landing when debts are cancelled and we are forced to face reality. He said he feared for the fate of those people in deindustrialized nations when the paper Bubble is pierced.
American deindustrialization began in 1994 with the passage of the North American Free Trade Act. The Federal Reserve has just announced it will begin or really continue buying up fraudulent Mortgage Backed Securities. This will free up cash for the banks to drive up food prices by buying even more commodities in the futures markets. Foreigners will realize our current inflation will accelerate and rise rapidly after the elections. The real inflation rate is 10% but will go higher as the dumping of the dollar accelerates. Investors are buying gold and silver. The dollar has declined in value which makes imports including oil more expensive. China simultaneously announced that they will trade for oil in yuan. Henry Kissinger invented the Petrodollar after th1973 Arab-Israeli war. America needed wars and rumors of ward in the Mideast to spike oil prices higher. Higher oil prices were good for the dollar because OPEC took all those excess dollars they earned to buy US Treasury bonds. The Japanese and the Chinese who have no oil ran huge trade surpluses with America which they used to buy oil. And all those Petrodollars were forwarded to Washington to fund America’s wars for Israel.
The Petrodollar is near death. I recently wrote that the Chinese are buying gold as if they knew the dollar would die very soon. Consider this fact. The FED is starting to accelerate inflation from a 10% base which will severely punish anyone holding dollars. And with the Federal Reserve announcing they will keep interest rates low through 2015 we know the dollar will decline rapidly. Who would buy a Treasury bond paying 3% interest when he reads that the inflation rate has just reached 15%? Who would hold onto a Treasury bond he bought last year after he reads that the American inflation rate has soared to 20%? And will anyone hold dollars after the inflation rate reaches 25%? I have defined a 25% inflation as the beginning point for Hyperinflation for an international reserve currency like the dollar.