Mark in SF

A Deflationary Spiral? Not Likely in the U.S.

"I know that I am way out of my league here - but what would happen if we suddenly declared all debt forgiven? Instead of pouring trillons into the banks to stimulate lending - imagine what would happen to the economy if the american consumer and business had not debt - no credit cards, mortage, car payment, ect... Talk about a stimulus. As a small business owner, lack of debt would certainly allow me to hire more people and start new projects. "

Mr. B, turn it around: Imagine if all savings were wiped out. All pension funds. All insurance company reserves. Social security reserves. Your companies cash holdings. What do you think savings are? It's all somebody else's debt.