“Every sovereign nation has the right to legislate its own debt terms, and the coming currency re-alignments and debt write-downs will be much more than mere ‘haircuts.’ There is no point in devaluing, unless ‘to excess’ – that is, by enough to actually change trade and production patterns.
That is why Franklin Roosevelt devalued the US dollar by 41% against gold in 1933, raising its official price from $20 to $35 an ounce. And to avoid raising the U.S. debt burden proportionally, he annulled the “gold clause” indexing payment of bank loans to the price of gold. This is where the political fight will occur today – over the payment of debt in currencies that are devalued.”
Michael Hudson, The Coming European Debt Wars
How does that equate to the debt of the country, the 16 trillion we are suppose have in government debt? Isn’t there some precedent where we the people are not responsible for the debts incurred by unlawful actions (borrowing) by our government? For example, for unlawful wars etc. not approved by congress but solely by executive decree. Didn’t I just read (TBP?) where Icelanders refused to pay (through referendum) what their government owed to UK banks. The only penalty suffered by Iceland was refusal into the EU and maybe a lower credit rating.
Annon,
Wouldn’t that be a great outcome for us? Then again Iceland
is a united country, and does not ramp up military bases and
sneak into countries v NGOs and “ISIS” incarnations. Nor does
Iceland fight endless proxy wars destroying countries’
infrastructure and murdering civilians. We are the armies for
certain masters.
Do we “get it” yet?
We will all pay for the debt by watching the values of our monetary assets devalued through inflation. The government will pay for the debt the way all governments have paid for their debts, by printing. First, they will protect themselves while trying to make it illegal for you to protect yourself. Throughout History, some things never change. This is one of them