“Don’t Owe. Won’t Pay.” Everything You’ve Been Told About Debt Is Wrong

[muriel_volestrangler]

11. If funds couldn't lend money to people or governments

(or lost what they had lent once, which would make them suspect it would happen again), then they'd crash the value of their loans as they rushed to get out before the jubilee, thus cutting everyone's pensions. For the future, you'd need them to own companies to provide future returns; if the global economy hadn't been ruined by the crash in pensions, I suppose that might work. But it might not; there may be limits to what businesses can be invested in.

But how willing do you think anyone would be to lend money again? Could the world economy function without mortgages? It might be fine for those who come from a family where there's only one or 2 to inherit from the generation that dies off and has homes to pass on, but if you're from a larger family, or a family in which people are renting, someone is out of luck.

I suspect we might end up with a compromise for the situation - most houses owned by pension funds who rent them out. That way, people can take part in something that will provide them with a retirement income, while there's no borrowing involved. Would you prefer that?