> what would happen if we just said, "Ok, if you owe money -
> everyone, every insitution, every corporation - you no
> longer owe money. Bang. Reset!"
>
> The economists usually freak out right? They say, OMG,
> all that money once paid to servicing debt can be spent
> on other things. The economy will heat up. All hell will
> break lose.
>
> is that the story?
The bigger story is that it would be a massive redistribution from bondholders to debtors. That means, for instance, that retirees who live off of interest would be thrown out into the street.
It's such a crazy idea, it's almost not even worth considering.
What would happen if the average temperature in NYC would double?
Who knows!?
/jordan