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[–]AnarchySpeach 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

In the current system having no debt means others have more debt.

An oversimplification I like to use: If I don't owe you money, it's because you owe me money, and I'm being polite by not asking for it right now.

student loan forgiveness. It's currently approaching the level of housing debt in scale.

Housing bubble popped. If the same happens to student loan debt it's going to be real bad because now the rich know what to expect.

That aside... how would the government even go about making it go away completely?

[–]Tom_Bombadil 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

The banks would need to be forced into a jubilee. Accounting magic.

The "loaned" money was created out of thin air.

The debt can be erased into thin air in the same way, and the banks can write down/off their losses, or give themselves a loan and go bankrupt (which 99.9% of the public is comfortable with).

I'm sure they'd go with the first option.

[–]AnarchySpeach 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

The "loaned" money was created out of thin air.

Most money is. An "IOU" has been a valid form of payment for hundreds of years.

banks can write down/off their losses, or give themselves a loan and go bankrupt

You're saying it like the Banks would comply without a fight. lol