wkmac
Well-Known Member
To even suggest this in the American ideal is like saying Jesus is not the flesh and blood son of almighty god but then I have no trouble saying that so there you go. In 1992' free market economist Murray Rothbard broached that very idea in the publication Chronicles and it was reprinted again here. This morning I read an article where the State of Minnesota has in effect "shutdown" because of deficits and debt and the ramifications of that. Aside the political posturing and grandstanding by political operatives, this recent event only marks another political subdivision bound down under the weight of economic reality that extends even up to the highest levels not only in America but other 1st world nations around the globe.
Many mainstream and respected financial experts who 4 or 5 years ago would never consider any thought of an individual using strategic default to walk away from an impossible debt scenario are now in fact issuing out that very advice. The standard advice now for those in upside down mortgages and in financial straights is the strategic default. Have we gotten to the point where Rothbard's idea should be given merit and discussion in the public square? If you think this is unthinkable and in the American traditions I understand that as I too was raised to pay one's debts but a number needs to be considered and discussed in the public space by all of us who occupy and make it work on a daily basis. When you take into account the total of all obligations that the American taxpayer is on the hook for, well just consider this point made in USA Today back in May 2007':
Now in 2011' with the national debt having gone up even further, the debt burden per household is even far greater. Walk into any financial expert and lay out your current finances, even if you are debt free and then add in your share of that taxpayer burden and ask, if all these liabilities had to be paid off even before you die, what advice would you give me to achieve those ends. I can tell you what that advice would be because I've asked 9 financial planners and lawyers so far myself as to what course of action would be most effective in that exact scenario and all of them said a complete and total Chapter 7 liquidation bankruptcy is the only option that would achieve complete solvency for that condition.
I think Rothbard's idea whether we like it or not, whether distasteful or not may indeed be the only option left. No, it's not pretty by any means, nor what any of us had in mind regardless of our race, sex, religion, politics, creed or favorite sports team but it may be a reality that we have to face and face together. I have no faith in organizations or institutions to get us out of this but I do have faith in the average folk who if allowed to be given the facts, ALL THE FACTS, everything on the table, nothing or no idea held back, then yes I do believe people could begin to sort these things out and find solutions. But the world as we know it now will likely change, it's going to anyway if we maintain course and we'll still have the debt to boot but I also believe it can change for the better if we really want that.
Fear is the mind killer!
Many mainstream and respected financial experts who 4 or 5 years ago would never consider any thought of an individual using strategic default to walk away from an impossible debt scenario are now in fact issuing out that very advice. The standard advice now for those in upside down mortgages and in financial straights is the strategic default. Have we gotten to the point where Rothbard's idea should be given merit and discussion in the public square? If you think this is unthinkable and in the American traditions I understand that as I too was raised to pay one's debts but a number needs to be considered and discussed in the public space by all of us who occupy and make it work on a daily basis. When you take into account the total of all obligations that the American taxpayer is on the hook for, well just consider this point made in USA Today back in May 2007':
Now in 2011' with the national debt having gone up even further, the debt burden per household is even far greater. Walk into any financial expert and lay out your current finances, even if you are debt free and then add in your share of that taxpayer burden and ask, if all these liabilities had to be paid off even before you die, what advice would you give me to achieve those ends. I can tell you what that advice would be because I've asked 9 financial planners and lawyers so far myself as to what course of action would be most effective in that exact scenario and all of them said a complete and total Chapter 7 liquidation bankruptcy is the only option that would achieve complete solvency for that condition.
I think Rothbard's idea whether we like it or not, whether distasteful or not may indeed be the only option left. No, it's not pretty by any means, nor what any of us had in mind regardless of our race, sex, religion, politics, creed or favorite sports team but it may be a reality that we have to face and face together. I have no faith in organizations or institutions to get us out of this but I do have faith in the average folk who if allowed to be given the facts, ALL THE FACTS, everything on the table, nothing or no idea held back, then yes I do believe people could begin to sort these things out and find solutions. But the world as we know it now will likely change, it's going to anyway if we maintain course and we'll still have the debt to boot but I also believe it can change for the better if we really want that.
Fear is the mind killer!
