Poverty & polarization
- nearly half the men ages 18-34 now live with their parents
--- the highest level since the Great Depression?
- in one of America's richest cities (Seattle) there are now 400 unauthorized homeless camps
--- under bridges and along freeway medians
- 78% of the U.S. population now lives paycheck to paycheck
--- with essentially zero savings
- some people — CEOs, tech entrepreneurs, and other members of the "1%" — are doing great
--- There's never been a better time for wealthy Americans
--- But the truth is, for most people, the situation is getting much, much worse.
Rise of militant extremism
- dramatic rise of the militant left-wing group ‘Antifa'
- resurgence of White Supremacists
- booming popularity of the Democratic Socialists
--- they've doubled membership in recent months
I want to share a few facts our politicians are afraid to tell you
- including the secret reason why working class Americans have gotten dramatically poorer over the past 40 years
- I've never seen this information published anywhere else
- you'll see why, for millions of Americans, a crisis is coming.
- I'm talking about a political event unlike anything we've seen in our country in nearly 50 years
Income Share of the Richest 10%
Most Americans are Getting Poorer:
Cumulative change in real wages, by wage percentile
Productivity Growth vs. Income Growth
Price of a new Ford F-150 Since the 1960s
Get ready America, The Debt Jubilee is coming
- term comes from The Old Testament, the Book of Leviticus, Chapter 25.
- A Jubilee in the Jewish tradition was said to occur roughly every 50 years.
- It was a time for total forgiveness of debt, the freeing of slaves, and the returning of lands
- Pope Boniface VIII proclaimed the first Christian Jubilee in 1300.
- Since then, it's been used dozens of times, when anger among a population hits extreme levels
- typically because of an explosive divide between the wealthy and the working class
Very soon, millions will be calling for a new Debt Jubilee here in America
- Folks like Carmen Reinhart of Harvard University and Stephen Roach of Yale have advocated for a Debt Jubilee in one form or another
- So have financial pundits Barry Ritholtz and Chris Whalen.
- In Congress, more than a half-dozen Jubilee-style laws have been proposed, by folks such as Rep. Kathy Castor and Senator Bill Nelson from Florida.
- And many of the most powerful left-wing economic "experts" are calling for a Debt Jubilee by name...
- London School of Economics Professor David Graeber says: "we are long overdue for some kind of Biblical-style Jubilee... it would relieve so much genuine human suffering."
- The national affairs correspondent for The Nation says we should: "Think Jubilee, American Style... because it combines a sense of social justice with old-fashioned common sense."
- Paul Kedrosky, a senior fellow at the Kaufman Foundation (a liberal think tank), says: "we need a fresh start, and we need it now... we need... a Jubilee."
- A Jubilee, which wipes the slate clean for millions of the most indebted Americans and "resets" the financial system — is inevitable
Who will pay for it?
- You, me, and millions of Americans with pensions, retirement accounts, and other types of savings.
- Just as in the past, the folks in Washington will disguise this Jubilee under a different name
- They might call it a "National Restoration" or "Patriotic Solvency"
If you don't think a debt Jubilee is possible in America, you haven't studied U.S. history
- They'll pass an "Act" like they did before:
- in 1841, when the laws were temporarily changed, so debtors could be discharged of their debts
--- without the consent of the creditors
--- Over a period of 13 months more than 40,000 people wiped away their debts
--- before the act was rescinded.
- or invoke an Executive Order as was done in 1933 (Executive Order 6102)
- or simply issue a mandate to the Secretary of the Treasury (which they did in 1971).
- The Jubilee will redistribute trillions of dollars:
--- from those who have invested and saved...
--- to those who can no longer pay their debts
So what does a Jubilee look like in the real world?
- around the world today, the idea of a Jubilee has become the de facto solution for extreme financial problems... when debts can't be repaid.
- Iceland used a Jubilee to restructure mortgages that were underwater.
- Croatia used a Jubilee in 2015 to wipe out millions in consumer debt.
- Japan is doing the same right now with nearly half its national debt.
- President Trump has suggested a Debt Jubilee for all of Puerto Rico's bond debt after Hurricane Maria.
- when the rich — a very small % of the population — get in trouble with debt, it's an economic problem
- But when the poor and middle class — a huge percentage of the population — get in trouble with debt, it's a political problem.