It is proposed that a worldwide economic summit be called among the nations of the world. At this summit, with agreement among all national chief executives, legislatures, and central banks that this be done only once, by law, it shall be ordered by all governments that in all ledgers, all balance sheets, all accounts in the computers around the world, and on the books of all central banks and lending institutions worldwide all debt, debits, be transferred as an asset, as a credit, to all creditor's accounts in their respective banks, either in real terms, or as a ratio of the then present debt, to be determined, to get all on an even playing field. If this is done in present real terms, or as a ratio, this means currencies will have to be realigned also if not doing so would promote inflation, or if other variables are present. Negotiations and discussions on this obviously will have to take place among the nations. This writing provides the direction, the outline, hopefully the impetus for this to be a reality. The specifics shall be determined by the various experts of different countries, the executive branches, and the central banks at the Summit.
With modern technology this can be accomplished in a relatively short-time with the realization that technological means allows this to be, in fact, also, relatively an easy action. It is vastly superior to what is presently being done.
The goal is zero global debt. The Summit should occur as soon as possible with the debt realignment event date being in the accomplished before the middle of 2013. The sooner the better. It takes vision. It takes courage. It takes effort. It takes leadership. The European Union, and others, have had Summits, but at a Summit there must be a global plan that will work, not worn-out old ideas of austerity, taxation, and more borrowing. The world would welcome a plan that will work. This plan will work.
All creditors receive payment.
All debt of nations will be realigned and all debtor nations released from their obligations. All holders of national debt will receive credits in their accounts. All governmental entities within the respective countries also shall have their debts realigned. In addition, to be truly global, all individuals and companies on the globe will have their contractual debt realigned as a credit, in real terms, or at a ratio to be determined in their respective accounts. The globe would be free of debt. This is a win-win for all.
No one loses anything but the debt. No one suffers. The creditor nations and international banks get asset capital on their ledgers. The debtor nations lose their debt -- worldwide. This is not debt forgiveness. No one loses. Countries, states, counties, municipalities, individuals, companies all can perform at their maximum. This is the essence of global debt realignment.
A new balance sheet in each institution is started with oversight and regulations in place, and with a new awareness of the pitfalls of wanton speculation and poor regulation. Nations are free to prosper. People can advance. Everyone is free to put their house in order. Nations can fully focus and fund the many challenges that face our planet; put their people to work; prosper. The world can advance.
Example for a country:
A country owes 200 billion dollars to the World Bank or the International Monetary Fund (IMF). Authorization is given to the World Bank or IMF to put on its books 200 billion in credit, 100%, or a ratio to be determined, derived from the debtor country's debt. The debtor country's debt is transferred as a credit. The debtor country owes no debt. The bank has credit to loan. The country is free from the debt. This can be repeated with every country, the poor and the rich. Countries are free "to promote the general welfare" without the burden of debt. The debt is "realigned."
America owes over a trillion dollars to different countries. It is agreed that the holders of these debts be realigned as credits, in real terms, or as a ratio to be determined in the amount of the debts in the bank where the debt is on the balance sheet as a debit. Interest payments cease. Resources are freed. Debt is gone. We move on. It is simple. Simplicity is what we need. We do not need more loans putting more debt and bondage on people, resources, and countries. What if a country or fund does not want to cash in its notes? The debtor's bank, or one designated, is instructed to holds the credits in a special account until such time as demand is made. In any event the governmental debt will equal zero after debt realignment with credits available on the balance sheets. Europe no longer has to worry about Greece, Spain, Italy, or Portugal. These countries are freed from their debts, as are all other countries, and their creditors do not lose and do not have to lend them more just to keep them above water. The people of these countries stop demonstrating and jobs become available with the capital now created with the realignment.
The ancient Hebrews handled massive debt every 50 years with a "Year of Jubilee," where "all were returned to their possessions." Leviticus XXV, The Old Testament.
Let us not be so pseudo sophisticated in our minds to think that there is nothing to learned from this. Debt realignment is the evolved model. With modern technology and banking expertise, it can be done. All we have to do is do it.
To be sure, the World Bank, the International Monetary Fund, and the separate Central Banks of the nations around the world will be much more comfortable, as will Wall Street, other markets, individual investors, and workers when this is accomplished. Then, refinements of the more conventional nature can be applied when the need arises.