What if all debt in the US was forgiven?

What would the repercussions be if the government just came out one day and forgave all debt in the US?

Basically they wouldn't say anything ahead of time, but they would just say all credit card, mortgages, loans etc are just "paid off".

What exactly would be the fallout from this?

I would imagine that most would be ass deep in debt again within a year, but besides that, what would happen?

in for answers! obama aint paying my mortgage! wtf am i doing wrong!??!

fun to think about! i feel like we (in general) do not take debt seriously enough as is, so this would only make us more childish as a country. either that, or everything would rule and everyone gets bumped up a class!!!! most everyone anyways. i know i'd be a lot better off without any of the previously mentioned payments. it's too early and i'm not stoned enough to answer the question any deeper. Phone Post 3.0

Well the president does not have the power to do this. If it somehow passed the congress there would be court challenges.

If it did pass every bank would go bankrupt. Phone Post

Zekolas - 

Well the president does not have the power to do this. If it somehow passed the congress there would be court challenges.

If it did pass every bank would go bankrupt. Phone Post


No I get that, but then what?

Banks go bankrupt and that starts the fall of civilization as we know it?

Walk me through it.

Besides mass riots of people trying to pull their money out of the banks of course. :)

What are parameters on this?

You owe your bank (USA only) the mortgage.
Your mortgage is forgiven.
The bank has invested the imaginary money from your mortgage in the USA. So basically what happens now is that the bank owes whoever money. Is this also forgiven or not?

If it is, that would mean that it would only affect international cooperations, or am I missing something?

Project Mayhem?

Nitecrawler - What would the repercussions be if the government just came out one day and forgave all debt in the US?

Basically they wouldn't say anything ahead of time, but they would just say all credit card, mortgages, loans etc are just "paid off".

What exactly would be the fallout from this?

I would imagine that most would be ass deep in debt again within a year, but besides that, what would happen?

read it all about it

http://www.washingtonsblog.com/2013/10/and-its-gone-the-fed-could-simply-cancel-all-5-trillion-of-intragovernmental-debt.html

Sagiv Lapkin - 


Project Mayhem?


"In the world I see - you are stalking elk through the damp canyon forests around the ruins of Rockefeller Center. You'll wear leather clothes that will last you the rest of your life. You'll climb the wrist-thick kudzu vines that wrap the Sears Tower. And when you look down, you'll see tiny figures pounding corn, laying strips of venison on the empty car pool lane of some abandoned superhighway."

;)

we don't have debtor's prison. anyone in jail for nonpayment of something is there for not paying punitive fees or fines by statute.

historically, it was the norm for societies to periodically waive all outstanding debts in order to keep their "middle" -- bourgeois & petite-bourgeois -- classes liquid and politically amenable to established power.

healthy banking systems were common if not ubiquitous during these periods. Phone Post

RJJH -


people in jail for not paying bills etc. would be pretty fucking upset. LOL.

People go to jail for not paying bills? Lol

Mark Phone Post 3.0

How would the banks go bankrupt if all that debt just turned into capital? Profits would take a dump but they could cover interest payments with the capital they just received from the government or pay off the debts they owe. You're saying that if everybody decided to pay back their loans tomorrow they would bankrupt all banks?

I think prices, mostly homes, would skyrocket. It would be a race to borrow and buy up assets. Stock market would also drive straight up. But counter to all this would be the value of the US dollar. Phone Post 3.0

We would just build it back up. :/ Phone Post 3.0

I don't get running to the bank to withdrawl your money. What good is all that paper going to do you at that point? I guess you could wipe your ass with it or use it to start a fire?

Ah, rack up huge debt and then just forget about it.  Now there is some winning thinking right there.

 

It's the American way!

 

It's a small wonder your country has become what it is.

6ULDV8 - 


Ah, rack up huge debt and then just forget about it.  Now there is some winning thinking right there.



 



It's the American way!



 



It's a small wonder your country has become what it is.



Canadians are more indebted than Americans.





 



The fallout after the recession caused a lot of Americans to clean up their personal balance sheets.  Canadians haven't learned this lesson yet.  Their debt levels are near where American's were in 2007.  That's scary.



Mark

Mark1 - 
6ULDV8 - 


Ah, rack up huge debt and then just forget about it.  Now there is some winning thinking right there.



 



It's the American way!



 



It's a small wonder your country has become what it is.



Canadians are more indebted than Americans.





 



The fallout after the recession caused a lot of Americans to clean up their personal balance sheets.  Canadians haven't learned this lesson yet.  Their debt levels are near where American's were in 2007.  That's scary.



Mark



Oh yeah.  We Canucks certainly enjoy getting it on credit as well.  When I first met my wife I had bundles of debt.



 



She's Asian and thinks carrying debt is crazy.  Here people wait till they can afford it before they buy it.



 



In North America waiting to buy it until you can afford it is just crazy talk.

There would be lots of airplane crashes due to all the flying pigs Phone Post

Tikmovado would probably shoot himself. Phone Post