Universal debt forgiveness and the imminent global debt jubilee
Alcuin Bramerton, June 20, 2011
You don’t need a slide rule, a set of log tables or a high frequency trading algorithm to see the light. Everyone on Main Street now knows that the Western cabal’s fixation with fiat-paper capitalism is a busted flush. Debt does not work as the basis of a global financial system.
Behind the scenes, all the indications are that universal debt forgiveness is set to be announced. A global debt jubilee is waiting in the wings. The Doctrine of Odious Debts has been spectacularly revisited. The default position of the global financial system is to be permanently reset. The vaults are stocked. The precious metals are audited. The new gold-backed regional currencies are printed, minted and ready.
The most recent catalyst for change has been Iraq. Before the Western cabal’s US-UK war of occupation and plunder began in Iraq in March 2003, Iraqi exiles expressed the hope that in a post-Saddam democratic Iraq, there would be a fair and equitable disposition of Saddam’s debts.
These Iraqis wanted the future administration of Iraq and the international community to review the debts accumulated under Saddam’s régime. Those loans which had been used for benign purposes should be restructured and paid back by Iraq over a prudent time period. Those loans which were used for objectionable purposes and which did nothing to enhance the well-being or prosperity of the Iraqi population at large, should be struck off the record immediately and completely.
This illustrates one of the core principles of debt forgiveness. Why should Iraqis be forced to repay the US, the British, the French, the Germans, the Russians, and all the others who had financially supported Saddam’s oppression of them?
The Iraqi argument for debt forgiveness had a sound basis in law. It reflects the century-old legal principle of the Doctrine of Odious Debts.
The Doctrine of Odious Debts was created to further international finance by limiting the ability of governments to repudiate debts. Three conditions had to apply before a sovereign state could repudiate a debt:
(1) The debt must have been incurred without the informed consent of the citizenry of the state.
(2) The debt must not have benefitted the citizenry of the state.
(3) The lender must have been aware of conditions (1) and (2) at the time that the loan papers were signed.
The United States employed these principles after the Spanish-American War to repudiate the Cuban debts.
If a despotic power incurs a debt which is manifestly not for the needs of the State, or not in the plain interest of the State, but is a debt incurred solely to strengthen the position of the despotic cabal as a self-serving faction within that State, the debt is odious. The debt is not an obligation for the nation; it is a cabal debt, a personal debt of the cabal which incurred it. And the debt falls with the fall of the cabal.
The Doctrine of Odious Debts not only promotes accountability, it promotes democracy in the debtor state as, one by one, the nature of the inherited debts are articulated in a public legislature.
The Doctrine of Odious Debts also promotes democracy in creditor states. In Canada and most European nations, the lending of state enterprises is generally hidden from taxpayers. Canada’s export credit agency, Export Development Canada, for example, is exempt from Canada’s Access to Information law.
In the case of Iraq, state agencies from France, Germany and Russia may have made questionable loans. Under an odious debt process, they would need to establish that they acted with due diligence to be entitled to repayment. Knowing this, they would be less likely to make questionable loans in the future.
Debt forgiveness and the Doctrine of Odious Debts also applies to individuals. The same principles have legal traction on loans or structured financial inducements made by financial institutions such as banks, mortgage lenders, insurance companies, stock-trading entities, energy conglomerates and pharmaceutical firms.
If the intention of the financial transaction tied to the loan, or tied to the financial inducement, is extortion, if it is, in effect, an élite scheme to bamboozle the borrower with small print or to blind him with science, that loan or inducement, should be struck off the record immediately and completely. The debt was not incurred with the informed consent of the borrower. The debt did not benefit the borrower. And the lender was well aware of these facts when the loan papers were signed.
Universal debt forgiveness is on the way as an essential precursor to the planet’s new gold-backed financial system. It has deep historical roots and powerful support in natural law. This imminent global debt jubilee is organically related to the disbursement of The World Global Settlement Funds and to the long-planned public NESARA announcements.
More background about the concept of the Odious Debt can be found here (pdf – 11 pages – Jayachandran and Kremer). Murray Rothbard’s original 2004 piece on Repudiating the US National Debt can be found here. And The Center for Global Development’s 2010 review entitled: “Whatever Happened to the Jubilee? A 10th Anniversary Assessment of the Debt Relief Movement” is linked here.