Sunday, October 25, 2015

Day 383 – Student Loan Debt: Why No Bankruptcy Option?

Recently, the Obama administration urged to bankruptcy option.  Below is a quote and link from the article:

 

“The Obama administration moved to block a bankruptcy court from erasing federal student loan debt, saying such an allowance would jeopardize the fiscal stability of the loan program.U.S. Department of Education attorneys, intervening in the case of a 65-year-old man seeking to erase his student loans in bankruptcy, filed a motion urging the court to stand firm with borrowers who claim they are in a dire financial situation. Attorneys argued that Robert Murphy of Massachusetts, unemployed and of retirement age, has plenty of chances to go back to work or hit the jackpot.No student debtors should get a break unless there is a "certainty of hopelessness" with circumstances that have a "total incapacity" to change, court documents said said…”

 


 

I find this to be unacceptable.  Here’s my take on this:

 

We have been programmed as a society and as individuals to place value in paying off debt.  This needs to be done away with.  Debts should not have to be paid off, period.  Why so?  Because this places the responsibility of due diligence on the lender and not the borrower.  If debts do not have to be paid off, then that is great.  No more lending.  Fine.  That means that inflation would be ended once and for all.  Why do we have inflation?  Through the creation of debt of which brings new money into the system of which pushes prices up.  Had we no debt, there would be no new money to push prices up and thus we would live in a world where everything is drastically less expensive.  College tuitions, in this case, would be virtually free on today’s standards just through the elimination of debt.  And how do we eliminate debt?  Easy, just pass laws that enable borrowers to not have to pay any of the debt back.  Period.  End of story.  Power has now been transferred back to the people and inflation is a thing of the past.

Sounds easy?  Sounds quixotic, perhaps?  Sounds criminal even, right?  I mean, no one has to pay off his or her debts?  What kind of a responsible society passes laws where debts do not have to be repaid, or at least debts only have to be repaid if the borrower has the means of which is at the borrowers discretion, and not the courts?  Seriously, we don’t need bankruptcy laws.  We just need to pass laws the lets borrowers off the hook for repayment of debts at their sole discretion – and bam: Everything changes and power is transferred to the people.

You see, our entire monetary system is founded on debt and the repayment of debt.  No repayment of debt and the whole system comes crashing down, and for good reason.  Do we really need to be straddled in trillions of dollars of debt?  Is this really serving any practical purpose other than to make those who print money to loan wealthy beyond our wildest imaginations? 

We don’t need debt.  We don’t need to be in debt, and once we wake up and realize this and pass laws relinquishing people from having to pay back debt altogether, then we will be in a position to expand ourselves and our society and world from the starting point of actual real physical substance and productivity, because money would then be based on what is physically here and able to be produced with our hands, and not imaginary numbers on a computer screen that we have pay back from our future productivity, as it is now. 

How would we finance college with no debt?  Oh my, this is so hard to imagine for most of us now with our pre-programmed mind-set of “debt is good and necessary”.  But, let's just take a minute to imagine this.  First of all, tuition and basic needs would cost about 1 cent on the dollar based on today’s prices.  That’s right, everything would be about 99% off.  How does that sound?  Don’t believe me?  Just check the value of the US dollar 100 years ago before our central bank experiment began and see for yourself. 

Now, do you think you can manage on 99% off tuition and basic needs?  And if you still need some money, then it would not come in the form of debt, because no one would lend $ if borrowers didn’t have to pay it back, but it would come in the form of grants, gifts, and scholarships from others with money who want to invest it in ways that are best for all and benefit all.  And that’s it.  It’s simple.

And here’s another form of a grant:  A living Income Guarantee.  That’s right.  Because it is best for all for all to have basic needs covered regardless of circumstances- those with money that see this and also understand the Universal LAW of give to receive, will be happy to give.  So, with a Living Income Guarantee, many people would not even go to school in the first place, let alone borrow to go to school. 

We need to get our reality checked.  We need to start realizing how we have limited ourselves by disobeying the Universal Law of “give to receive” and instead traded up with the “curse of debt and growth through debt and inflation”.  We need to start thinking about grants of which come from the wealth of our efforts and ultimately the fruit of our labors with and of the earth, of which we are all made of, that would be freely given to others so that we can all become all that we can be so that we can then give back to all, of which creates a world of giving and receiving – where everyone is wealthy and the idea of debt is a laughable thing of the past back in the days when we are all barbaric crazy fools.  And we need to get away from the antiquated notion that wealth comes through debt and that somehow we are “dead-beats” because we don’t pay off our debts or are unable to pay off our debts of which should have never existed in the first place if we had our priorities straight about what really matters and about how to create real wealth and a world that is best for all.

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