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Wed Jun 13, 2012, 07:58 AM

Jump start the economy! [View all]

Paul Craig Roberts solution to the so-called financial crisis - http://globalresearch.ca/index.php?context=va&aid=31272 -


Everyone wants a solution, so I will provide one. The US government should simply cancel the $230 trillion in derivative bets, declaring them null and void. As no real assets are involved, merely gambling on notional values, the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system. The financial gangsters who want to continue enjoying betting gains while the public underwrites their losses would scream and yell about the sanctity of contracts. However, a government that can murder its own citizens or throw them into dungeons without due process can abolish all the contracts it wants in the name of national security. And most certainly, unlike the war on terror, purging the financial system of the gambling derivatives would vastly improve national security.

http://globalresearch.ca/index.php?context=va&aid=31272

(I'm not endorsing the website or anything on it.)

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Reply Jump start the economy! [View all]
rgbecker Jun 2012 OP
ralfy Jun 2012 #1
Egalitarian Thug Jun 2012 #2
AnotherMcIntosh Jun 2012 #3