Do You Think This Idea Would Help The Economy?

You're pretty sure that you know more than millions of borrowers and lenders? And you've thought about all the unintended consequences that happen when you try to manipulate outcomes the market won't support? At least you qualify for a job in Washington.

I see a lot of problems with your idea. Let me pick them out for you and explain them to you in a simplifed manner that won't require a few dozen pages of an explanation for each:

1. Your first idea is that every nation on earth freezes their debt. The United States for starters would not be able to pay its bills, thus would have to cut down on Govt. spending to the extreme so they can pay for their other bills (e.g. abolish unemployment checks, abolish the subsidizing of some companies, etc.) Now imagine what would happen if the U.S did this (imagine tossing a scrap of metal on a train track when the train is going 200 mph.) This is assuming you don't also mean freezing 'future' debt. Because freezing current debt wouldn't do much at all, because we're still borrowing more debt.

2. Your second idea incorporates freezing debt like mortgage. That's all well and good, however banks make money off mortgages. Furthermore I seriously doubt that the law would even allow the Govt. to force them to do that. Banks would go under, and a most serious economic crisis would occur. If however this idea could be incorporated, and somehow the banks made up for the loss else-where, inflation would rise as economic growth would rise, unemployment would fall and an external imbalance would occur, as economics 101 perscribes. However, I'm pretty sure inflation would go so far through the roof, it might reach insane heights like 15%, 20% as people get more money.

Then I'm pretty sure new debt would occur, and when that 2-year period is over with...don't even want to think about it (this is assuming new debt 'can' occur.)

3. Companies would never offer incentives for people to continue to pay their debt in this period. That makes no sense at all. Where is their benefit in it all? If I were a boss, and I was paying incentives to employees to pay off their debt, how does this make any sense? Companies are there for profit, to make money for themselves, not to 'offer incentives for people to pay off their debt.'

4. You're assuming that everything goes squeaky clean-machine-perfect and that if certain 'rules' of economics, common sense and all greed were tossed out the window, that America would actually get some established economic growth. And you're also assuming other countries won't intervene in any way from an economical and political standpoint. Don't forget that you're also assuming that politicians here in the states would be willing to commit political suicide, and all the ignorance that hangs like a veil over the population as far as economics is concerned, would vanish and everyone would realize "It'll help better the world."

I don't mean to be so critical, but have you ever taken any economics courses at all? If you have, you obviously are not exercising them at all. Furthermore, you are completely ignoring greed, human selfishness, and the fact that some people just want to watch the world burn not get better. Not to mention each country as their own agenda.

I apologize, but your idea is a fairy tale.

TECHNICALLY, that would work just fine, except that the financial system only operates to make money off of that debt, and unless the freeze were announced and enacted instantaneously, which would piss a lot of people off, then the global financial system would collapse and our entire world economy would come to and end. If the debt wasn't a source of revenue and profit like it is, then your plan would cause nothing more than a hiccup in the grand scheme of things.

No, since there's no internet develop in 20 greenback expenditures or purchasing occurring. If anyone gets 20 from you, however then has to ship 20 greenbacks to anyone else, there's no further cash.

How about the write-off. I do understand if you were a Greek. Just pretend to be an underdeveloped country asking for the write-off for humanitarian purpose.It will save the Euro.You will be a hero.

Or even better, establish a left collectivist society where there is no business or currency, and the planet runs of free-trade. It isn't that hard to understand.

There is nothing to fix. The economy goes up and down all the time. This is perfectly normal.

It happened in 1987, 2001, and now.