Tuesday, May 24, 2011

the great EU debt write-off

eudebtwriteoff | Welcome to the great EU debt write off - This website presents the results of a simulation conducted by students at ESCP Europe Business School. The aim was to uncover the amount of interlinked debt between Portugal, Ireland, Italy, Greece, Spain, Britain, France, and Germany; and then see what would happen if they attempted to cross cancel obligations.
The results were astounding:
  • The countries can reduce their total debt by 64% through cross cancellation of interlinked debt, taking total debt from 40.47% of GDP to 14.58%
  • Six countries – Ireland, Italy, Spain, Britain, France and Germany – can write off more than 50% of their outstanding debt
  • Three countries - Ireland, Italy, and Germany – can reduce their obligations such that they owe more than €1bn to only 2 other countries
  • Ireland can reduce its debt from almost 130% of GDP to under 20% of GDP
  • France can virtually eliminate its debt – reducing it to just 0.06% of GDP


Uglyblackjohn said...

But this debt creates jobs to service this debt.
While this seems to be a good simple answer to an ever more complex problem - it will never happen.
The ownership of dept is seen as power.

CNu said...

Fractional reserve banking based "credit" controls capitalism, which properly understood, is our primary system of governance.