It is also awash in disease...COVID 19 is an epic tragedy in the making. Before it is done, every country on Earth will experience death and a serious recession.
We need a way to dump mass debt worldwide, and to date no one has been willing to honestly deal with this issue - COVID 19 may be a perfect excuse.
As this pandemic unfolds, we may have a chance to launch a general round of debt forgiveness and restructuring:
- States with massive internal debt could stop paying their bonds when they come due, and pay the interest only instead;
- Countries could cancel debt when they owe money to each other, netting this mutual debt to zero regardless of the related interest rates and risk levels;
- Individuals could be permitted to more easily go into bankruptcy, and start over again; and,
- Personal and public debt worldwide could be restructured effectively lowering interests rates to virtually zero, making management of all debt substantially easier.
Without dealing with this situation, a COVID-19 recession could morph into something far worse as the present debt situation worldwide is so serious that it limits our ability to move beyond any pandemic-related economic downturn. This tragedy may be what we need to create the breathing room that is so obviously required.
Would the bankers of the world let something like this happen?...
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