{"id":24953,"date":"2017-12-08T13:52:55","date_gmt":"2017-12-08T18:52:55","guid":{"rendered":"http:\/\/ssgreenberg.name\/PoliticsBlog\/?p=24953"},"modified":"2017-12-08T13:52:55","modified_gmt":"2017-12-08T18:52:55","slug":"debts-that-cant-be-paid-wont-be","status":"publish","type":"post","link":"https:\/\/ssgreenberg.name\/PoliticsBlog\/2017\/12\/08\/debts-that-cant-be-paid-wont-be\/","title":{"rendered":"Debts that can\u2019t be paid, won\u2019t be"},"content":{"rendered":"

Michael Hudson has the article Debts that can\u2019t be paid, won\u2019t be<\/a>.<\/p>\n

\nWriting down debts reduces the overall economy\u2019s financial costs. Keeping debts on the books retains these costs. So when the financial sector (or the 1%) insists on maintaining the debts that have been run up \u2013 and supporting the debt-leveraged price of real estate pledged as collateral \u2013 securing its past \u201csavings\u201d gains are incompatible with maintaining a viable economy. The debt overhead becomes an expense that must be shed if the economy is not to shrink \u2013 and if it does shrink, more debts will go bad and a deteriorating spiral will set in.<\/p>\n

Perception of this long-term macroeconomic dynamic is what has led the past few centuries of legal trends and political ideology to favor indebted labor and industry, and indebted governments as well. It explains why debtors\u2019 prisons have been closed, and bankruptcy laws become increasingly humanitarian to enable debtors to make a fresh start. This idea of clean slates is only recently being extended to the economy-wide scale, starting with government debts to global creditors.<\/p>\n

Today\u2019s financial trend threatens to reverse this pro-debtor reform tendency.\n<\/p><\/blockquote>\n

I had been looking for the origins of the phrase that is the title of this article, and this is one of the items that I came across. I don’t think this phrase was originated by Michael Hudson, but the article is a good treatise on the subject.<\/p>\n","protected":false},"excerpt":{"rendered":"

Michael Hudson has the article Debts that can\u2019t be paid, won\u2019t be. Writing down debts reduces the overall economy\u2019s financial costs. Keeping debts on the books retains these costs. So when the financial sector (or the 1%) insists on maintaining the debts that have been run up \u2013 and supporting the debt-leveraged price of real […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[166],"tags":[],"class_list":{"0":"post-24953","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-stevegsposts","7":"czr-hentry"},"_links":{"self":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/24953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/comments?post=24953"}],"version-history":[{"count":1,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/24953\/revisions"}],"predecessor-version":[{"id":24954,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/posts\/24953\/revisions\/24954"}],"wp:attachment":[{"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/media?parent=24953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/categories?post=24953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ssgreenberg.name\/PoliticsBlog\/wp-json\/wp\/v2\/tags?post=24953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}