Cryptocurrency Opinions

The Hostile Debt Clock is Ticking

July 31, 2019
Jeffrey Wernick

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The Hostile Debt Clock is Ticking

I contend that since the monetary experiment with quantitative easing, unorthodox monetary policies and the unprecedented expansion of the Central Bank balance sheet, that all debt issued by the USA government is odious debt. And that all those who have not reached voting age should be able to legally renounce the debt. 

In 1927, jurist Alexander Sack described odious debt as debt issued by the State to strengthen its power and repress the population. Hostile debts and profligate debts have been included in the definition of odious debt. And that the debtor and creditors are aware of its odious purpose. 

The Central Bank is quite aware, as are banks and Wall Street, that the spending is profligate and much has been spent on endless wars, hostile acts. 






Few, if any believe we will grow our way out of the debt. Some believe we can both increase it and roll it over into perpetuity. I think few would actually be willing to attest to that under oath and subject to perjury charges. There are some though who are in the eternal free lunch school of economic theory where there is no limit to debt issuance by sovereign nations and that the market can absorb an infinite supply without any use of the Central Bank balance sheet. 

I guess they would argue that independent of economic growth, there is no limit to debt that could be issued and that future taxes would never have to be raised in order to sustain the debt already outstanding plus the incurrence of additional debt. 

It seems evident to me that if we are issuing debt today that will require tax increases in the future. If that spending is not of an investment nature like infrastructure projects or others whose revenues would offset the spending, like a capital budget, but used for current operations like wars, surveillance, transfer payments, entitlements. That seems clear to be a case of taxation without representation. Hostile debts. Profligate debts. And that those who did not have the opportunity to vote for the debt incurred should have no liability for its amortization or repayment. 

The Trump budget is odious. Profligate and hostile spending by Congress is odious. And the Central Bank subsidization is odious. 

Ben Franklin wrote: “The refusal of King George to allow the colonies to operate an honest money system, which freed the ordinary man from clutches of the money manipulators was probably the prime cause of the revolution.” 

Today, it is not King George, but Donald Trump, Nancy Pelosi, Mitch McConnell and Jay Powell.