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7 Reasons Why We Need a Global Default

By Tracy R Twyman - May 24, 2010

Last month the IMF released a series of policy papers recommending austeritymeasures for all Western countries, including the USA. The recommendations were reviewed by Howard Schneider at The Washington Post   and summarized with the headline “For nations living the good life, the party’s over, IMF says.” Thepapers predictably called for things like the depression of wages, increasing taxes,

and pushing back the retirement age. They also called upon the Western nationsto devalue their currencies, including the US dollar. The IMF papers franklyimplied that we all have been enjoying a standard of living that we didn’t deserve,thus the “party” headline. These sentiments were echoed by New York Times  columnist Thomas Friedman, who denounced us all for eating through our post-World War II economic abundance “like hungry locusts”, and believing that the“tooth fairy” would somehow keep it all coming.

Friedman is not the only figure in the mainstream media and politics that hasbeen pimping the idea of austerity measures to Americans, and implying that,through our laziness and greed, we have all brought this financial crisis on

ourselves. Despite the fact that Americans are now working longer hours thanany time in the last 40 years, with greatly increased productivity and ever-decreasing inflation-adjusted wages, and a steadily-declining standard of living,going without health care and forestalling retirement at unprecedented rates,people like Glenn Beck frequently state that we’re going to have to “tighten ourbelts” to save our children’s future prosperity. This has become the Republicanco-opted version of the Tea Party’s new message of fiscal responsibility. In their world-view, it’s “conservative” to go along with austerity measures imposed by aprivately-owned international corporate government entity, to accept higher taxesand the theft of your pensions and entitlements so that your government can

make higher interest payments on an unpayable debt to banks.But in fact, adopting these measures will condemn our children to a life of complete serfdom. The new taxes are never going to go away, the retirement age

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 will never be lowered back down, and the pension money is never coming back. It will just be lost forever into the black hole that is the global banking system. Thebanks don’t need any more of our money. They make our money. What they needis more control over their slaves. The belt that is being tightened around us rightnow is one of bondage to corporate overlords through a debt that can never bepaid.

What really needs to happen is that every country, every corporation, and everyman and woman on Earth need to default on their debts to the banks. We need aglobal default. You know it, and I know it. But in case there’s anyone out there who doesn’t know it, allow me to give you the 7 main reasons why we must havea global default.

1. All debts were based on loans extended by private banks with moneycreated out of nothing by fractional reserve lending, which is fraud.

2. The banks will not be losing anything, since they never had any moneyto begin with. They will only be losing the hope of ever collecting on thefraudulent debts they’ve created, which is all they ever lost in the firstplace. Think about it: the entire “credit crisis” that started in 2008 was abunch of bankers having a hissy fit because they were unable to get peopleto pay off the fraudulent debts they created, even though any reasonableperson, looking at the underlying debts, would have concluded from thevery beginning that they were never going to be paid. It would be like if Iran up a bunch of debts on credit, with the expectation that I was going tobe able to pay it back by winning the lottery. And when I didn’t win, I wentcrying to the government, demanding they pay me the lottery winnings I

 was expecting so that I can pay my bills. In this scenario, I didn’t anything.I just had an unrealistic expectation that I would win.

3. As Ellen Brown explains in my recent interview with her, countries donot need banks in order to create money. Therefore it is possible to create asolution wherein governments do not need to borrow from them in thefuture, and therefore we would then not need to worry about what theyconsider our government’s credit rating to be. Indeed, what does a “creditrating” mean coming from a banking cartel that has had to borrow trillionsfrom taxpayers over the last 2 years just to stay in business?

4.The countries and banks that are bailing out other countries and banksare themselves bankrupt and in need of a bailout. In other words, thepeople of every nation on Earth, and indeed almost all corporations onEarth, would actually benefit immediately from a global default, evenfactoring in the lost revenue they would suffer because of their debtorsdefaulting on them. The end result would still be a net gain for almosteveryone.

5. It is not possible to “tighten your belt” around a $700 trillion hole in theglobal credit markets caused by toxic derivatives that were created and soldthrough fraud. There is not enough wealth on Earth to pay for it all, nor will we ever be able to pay for it with the slave labor of our descendants,

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