In a move that reflects the ancient ways used to sort out toxic economies, the newly elected leader of Khazakstan, Kassym-Jomart Tokayev, has opened up the way for a debt jubilee to be enacted in his country.
Following an ancient tradition that goes way back to Sumerian, Babylonian and Persian days, the President has declared bad debts affecting over one fifth of the population will be annulled, written off. He also went on to declare that support for bailing out the banks would end.
“My attitude is that there should be no governmental bailouts” for lenders, Tokayev told Bloomberg in an interview. “My assessment of this issue as a president is that the government should not get involved any more, any longer, with its loans as far as private banks are concerned.”
Such moves have been, over recent years, mooted by sensible and independent economists and strategists to be the only real and valid way to rid the global economies of their toxic self created nature and reset the economic clock and health. Steve Keen, professor of economics at Kingston University in London and author of Debunking Economics says:
The basic idea behind a modern debt jubilee is we’ve let far too much private debt accumulate by allowing the financial sector to exercise the rights of being able to create money without exercising the responsibilities that should come with it.
What they’ve done is do the brain-dead thing of funding asset bubbles because it’s easy to just give somebody money to buy a house. That causes the price of the houses to go up. And then you get nice large bonuses on that. And when the bubble bursts, who cares? You’ve already moved onto another company or you’ve taken out so much it doesn’t matter to you.
Khazakstan itself is in a prime position with its southern territories benefiting a direct road from Beijing to Europe, thanks to the BRI (Belt and Road Initiative) that started in 2013 and is now attracting hundreds of partnerships and global interest. The old capital Almaty, whose financial centres already boast huge inward interest and investment looks to benefit even more, since the building by the ex President and founder of modern day Khazakstan, Nursultan Nasarbayev, the present capital Nur-Sultan (Astana)
In the West the thought of a debt Jubilee fills those controlling the economic veins of nations with dread and horror. That their blood sucking on debt societies might consider the masses ahead of their deep pocketed trousering of billions and their profit taking demise, is a step too far. They would rather run with their ill gotten gains and see the whole house of cards crash around them, confident their own position is water tight and sound than take selfless action.
However the likes of the Chinese, whose forward chess play demands working towards the benefit of all people, many generations down the line rather than an elite look to check mate any ill found Western hegemony. Their Eurasian, Russian and Far Eastern partners are set on developing stronger and stronger economic powerhouses while the West, specifically the US, will be left floundering through disastrous car crash economies.
The world’s economic health depends on many parts, yet with one major sector having already created a gold backed insurance scheme against tsunami like depressions, it not only explains the Western interest to ferment unrest, wars by proxy and other jealous making knee jerks, but also highlights the denial these self seeking bandits display.
In the UK there is a growing campaign for debt jubilee to be enacted. This practice of debt jubilee was utilised by the Babylonians, the Romans and others to disband debts that would otherwise cripple economies. Creating debt justice, as opposed to debt slavery not only is just it also places the Many at the head of the queue with their interests first rather than the few and their banisters. Far from ruining the economy it releases a whole flood of newly available spending power to revitalise and renew economic flotation.
The killer of growing inequality has to be addressed. No matter what propagandised lies are flaunted to demonise and image China and its partners in their march towards a multipolar world, the dying regimes of greed, benefit of the few and global hegemony are too far gone in their futile attempts at rescuing an impossible situation.
Hyper inflation, in itself a self rectifying modality, does not cause balancing in any longterm sense. It may work well to wipe out government debt but its concomitant misery poured on the people does the masses no favours at all. The Germans from 1921 to 1924 can attest to that.
Hyper inflation, as defined as a monthly inflation rate of more than 50% per month, has occurred in many other countries during the 20th century including Angola, Argentina, Armenia, Austria, Azerbaijan, Belarus, Bolivia, Bosnia, Brazil, Bulgaria, Chile, China, Estonia, France, Georgia, Greece, Hungary, Kazakhstan, Kyrgyzstan, Krajina, North Korea, Nicaragua, Peru, Philippines, Poland, Russia, Taiwan, Tajikistan, Turkmenistan, Ukraine, Uzbekistan, Yugoslavia, Zaire and Zimbabwe.
Advocating that a country deliberately go through a period of hyper inflation or force a debt jubilee appears irresponsible. However, the alternative is arguably not only worse but impossible to achieve: a crushing debt burden on societies and the loss of all services previously paid for by taxation.
Were hyper inflation to hit the UK, it is an interesting supposition to wonder whether an incoming Labour government, on the fall of the right, could ride in on such unpopularity, create a massive debt jubilee, smash the banking cartels and start a rebuild that Labour of the 1940s and 50s could have only dreamed of.
Whether this would happen, one thing is for certain – the present inequality within those so called civilised states – must necessarily be wiped out and the people’s interest to be placed for once at the top of the agenda, where they should always have been from day one.