Jim’s Daily Rant. How Might A Global Debt Jubilee Impact the World’s Countries.

Be patient with me as this is just fleeting thoughts.

All Countries are either net-debtors and net-creditors, in their relationships to individual countries. There are countries that are big ones and small ones. There are countries that are both debtors and creditors at the same time – they owe some countries and at the same time, they are creditors to others. This is the hodgepodge we have to work with.

Suppose we determine the total debt and total credit each country has on it’s books. Now this will be a complex problem but lets assume it is easy to do.

[Note: These Debts and Credits will have to be defined out.]

Then we mathematically determine the mean (average) debt and mean credit somehow.

Elimination Step 1:

     All countries that hold accounts under the mean debt and or credits will have those debts and credits offset and now both are forgiven. This means that for simplicity, all the little fish get to just swim away. [Note, this harms the small creditors. But see: Option to Step 1 below.]

Elimination Step 2:

     We create a new mean for debtors and creditors that remain after Step 1 above.Then we repeat Step 1 procedure for all the individual debts and Credits each country holds that are in the bottom half of the mean (average).

Thus, the US may have XX number of relationships with small countries, both as debts and credits, that will be forgiven.

Elimination Step 3: 

This then leaves only the behemoth countries with elephant size debts and credits between them.We step back and allow those countries to meet and negotiate their way out of those individual situations, in such a manner as to not create wars. _________________________________________

Options to Step 1.

Have a global Trust fund be used to purchase all the debt on the small countries and pay it off, thus causing no harm to any of those countries during the Jubilee.

Options to Step 3.

a) If they cannot reach a conclusion after XX days, and do not opt for plan “b” below, then 50% of all the individual debts are forgiven.

   This lowers the need for a war. This process is continually repeated until all debt is accounted for.

After a total of XX days of this repeated process, 50% all the remaining undecided debts are decided and this process is ended. This will end all debt decisions for Step 3. (This ends the entire process timely.)

b) If they cannot reach a conclusion, after XX days, then each individual country will go into forced mediation with each of its counterpart country.

Each Country will assign their own mediator. Those two mediators will then select a third neutral mediator. Their decision must be reached in XX days and it will be binding. This will end all debt decisions timely for Step 3.