Hi orda,
Nice article. Another way of reducing the value of existing debts is via inflation. Which is why I and many folks have been saying in this perverse economic universe this might actually be helpful right now. Unfortunately, like debt forgiveness, it doesn't look likely any time soon. If only it were. Our problem is deflation.
Of course, like inflation, debt forgiveness is pretty unfair on owners. But what else are we gonna do - live with economic stagnation forever? It's a rubbish economy in which gold makes a good investment. Something has to give. Killing ourselves with cost reductions isn't a solution (see old posts). There's no political will to try a full-on Keynesian solution to see if we can generate some growth. In the circumstances, either the value of money or the value of the obligation has to change or we're stuck.
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