,DAVID ,GRAEB] /UDI$ #e1 YE>S ( DEBT 
,REAL DIRTY SECRET IS ?AT IF ! DEFICIT EV] COMPLETELY W5T AWAY1 IT W\LD CAUSE A MAJOR CATA/ROPHE 

,PEOPLE 3 

,AU?OR 3 ,DAVID ,GRAEB] 

,TEXT 3 

,ANSW]+ TODAY'S ,(,F-,S,E,T QUE/IONS IS ,DAVID ,GRAEB]1 :O TEA*ES AN?ROPOLOGY AT ,GOLDSMI?S ,COLLEGE1 ,UNIV]SITY ( ,LONDON4 ,HE IS ! AU?OR ( 0,T[>DS AN ,AN?ROPOLOGICAL ,!ORY ( ,VALUE10 0,LO/ ,PEOPLE10 & 0,POSSIBILITIES3 ,ESSAYS ON ,HI]>*Y1 ,REBELLION & ,DESIRE40 

,HIS NEW BOOK IS 5TITL$ 0,DEBT3 ,! ,FIR/ #e1 ,YE>S10 & 9 IT1 ,GRAEB] 9DE$ EXAM9ES ! HI/ORICAL SIGNIFICANCE ( DEBT1 ! /RUGGLE BETWE5 RI* & POOR1 & ! MORAL IMPLICATIONS 9H]5T 9 \R IDEAS AB\T CR$IT & DEBT4 

,! ,U4,S4 ,TREASURY ,DEP>TM5T LA/ ,FRIDAY REIT]AT$ ITS ,AUG4 #b DEADL9E = RAIS+ ! DEBT CEIL+1 & URG$ ,CONGRESS 0TO AVOID ! CATA/ROPHIC ECONOMIC & M>KET CONSEQU5CES ( A DEFAULT CRISIS BY RAIS+ ! /ATUTORY DEBT LIMIT 9 A TIMELY MANN]40 ,! ,:ITE ,H\SE WANTS A DEAL BY ,JULY #b#b4 ,IF ! DEBT CEIL+ ISN'T RAIS$1 ! ,TREASURY W\LD NOT BE ABLE TO PAY NE>LY HALF ( ! #h MILLION PAYM5TS IT NE$S TO MAKE EV]Y MON?1 ACCORD+ TO AN E/IMATE BY BUDGET EXP]TS AT ! ,BIP>TISAN ,POLICY ,C5T]4 

,H[ DID ! ,UNIT$ ,/ATES GET 9TO ?IS SITUATION8 

,BECAUSE ! ,REPUBLICANS >E 5GAG$ 9 ONE ( ! MO/ EXTRAORD9>Y CAMPAIGNS ( POLITICAL RECKLESSNESS 9 REC5T MEMORY4 

,ONE HAS TO PRESUME ?AT ,REPUBLICANS >E P]FECTLY WELL AW>E ?AT ! ,U,S DEBT IS NOT REALLY A CRISIS1 & ?AT !Y'RE NOT REALLY GO+ TO =CE 9TO DEFAULT JU/ TO BE ABLE TO HACK FUR!R AWAY AT SOCIAL PROGRAMS4 ,?AT'S :AT !Y SEEM TO BE TELL+ ,WALL ,/REET1 ANYWAY4 ,BUT IT'S ALMO/ UNIMAG9ABLY IRRESPONSIBLE4 ,IF Y\ PLAY *ICK51 !RE IS ALWAYS ! *ANCE ?AT Y\'LL GO (F A CLIFF4 

,SO IF ,CONGRESS DOESN'T RAISE ! @s#a#d4#c TRILLION DEBT CEIL+ 9 A FEW WEEKS1 & ! ,U4,S4 DEFAULTS ON ITS DEBT = ! FIR/ TIME 9 HI/ORY1 :AT LEVEL ( CONFUSION1 CALAMITY & CRISIS MI<T ?IS C\NTRY FACE8 

,IT'S REALLY H>D TO SAY4 ,PROBABLY 9 ! %ORT RUN1 NOT ?AT MU* - !RE >E ALWAYS EXP$I5TS ! F$]AL GOV]NM5T CAN USE TO /OP ! GAP TEMPOR>ILY1 & ! BUS9ESS COMMUNITY WILL PUT 5ORM\S PRESSURE ON ! ,REPUBLICANS TO CUT IT \T4 

,! DANG] W\LD BE ! EFFECTS OV]SEAS - W\LD IT ACCEL]ATE MOVEM5TS TO AB&ON ! USE ( ,U,S TREASURY BONDS AS 9T]NATIONAL RES]VE CURR5CY4 ,S9CE #a#i#g#a1 :5 ,NIXON W5T (F ! GOLD /&>D1 ! DOLL> HAS ESS5TIALLY PLAY$ ! ROLE GOLD US$ TO PLAY AS ! B$ROCK ( ! WORLD BANK+ SY/EM4 

,RUSSIA HAS BE5 >GU+ ! WORLD %\LD MOVE AWAY FROM ! SY/EM = YE>S1 ,*9A OCCASIONALLY AT LEA/ PRET5DS TO TOY ) IT1 & ,DOM9IQUE ,/RAUSS-,KAHN WAS APP>5TLY WORK+ ON AN ALT]NATIVE SY/EM AS WELL BE=E4444 WELL1 Y\ KN[4 

,IF ?AT *ANGES1 ! EFFECTS MI<T WELL BE EPO*AL1 BECAUSE ! /RUCTURE ( ! CURR5T WORLD ECONOMY1 :]E ! ,U,S MILIT>Y BASICALLY PLAYS ! ROLE ( POLICE1 & IS EFFECTIVELY REW>D$ BY BE+ ALL[$ TO MA9TA9 A GLOBAL MONET>Y SY/EM :I* GIVES US HUGE ECONOMIC ADVANTAGES 7NOTABLY1 ! ABILITY TO IMPORT MU* MORE ?AN WE EXPORT71 WILL BE S]I\SLY JEOP>DIZ$4 

,AT A REC5T NEWS CONF]5CE1 ! PRESID5T ONCE AGA9 COMP>$ GOV]NM5T SP5D+ TO :AT ,AM]ICAN H\SEHOLDS FACE4 0,\R FIR/ />T] HOME WAS A @s#a#h1 CONDO10 ,OBAMA SAID4 0,?AT WAS /ILL A GOOD 9VE/M5T1 & WE W]E ABLE TO MAKE ! PAYM5TS40 ,>E ! BILLS ?AT AV]AGE ,AM]ICANS FACE A GOOD ANALOGY TO EXPLA9 ! COMPLEXITIES ( GOV]NM5T SP5D+8 

,TO BE HONE/ IT'S H>D TO IMAG9E A MORE RIDICUL\S ANALOGY4 ,IT'S H>D TO EV5 C\NT ! WAYS4 ,SURE1 H\SEHOLDS HAVE TO BR+ 9 REV5UES1 & !Y HAVE TO PAY SOME ( IT \T1 OR BORR[ ! DIFF]5CE4 ,BUT !RE ! RESEMBLANCE 5DS4 

,FIR/ ( ALL1 ! ,U,S GOV]NM5T IS LIKE A H\SEHOLD :]E ! BREADW9N] GETS TO *>GE HIS EMPLOY] ANY?+ HE LIKES4 ,SECOND ( ALL1 IF Y\ OR ,I BORR[ MONEY1 WE BORR[ IT FROM SOMEBODY ELSE - A BANK1 USUALLY1 :I* CAN CALL 9 ! REPO MAN1 & EV5TUALLY1 IF Y\ DON'T COOP]ATE1 ! POLICE4 

,! ,U,S [ES MO/ ( ?AT MONEY TO ITSELF4 ,F\R DOLL>S 9 FIVE >E [$ 9T]NALLY1 & AB\T HALF ( ?AT IS ACTUALLY [$ BY ! GOV]NM5T TO O!R BRAN*ES ( ! GOV]NM5T--ESPECIALLY1 TO ! ,F$]AL RES]VE4 

,& ( C\RSE 9S(> AS COPS >E 9VOLV$1 ! GOV]NM5T IS ! COPS - NOBODY CAN =CE IT TO DO ANY?+ IT DOESN'T WANT TO4 ,C]TA9LY ! ,F$ CAN'T - IF ! GOV]NM5T REALLY WANT$ TO1 IT C\LD TAKE OV] ! ,F$]AL ,RES]VE 5TIRELY1 OR ABOLI% IT1 OR REWRITE ITS RULES PRETTY MU* ANY WAY IT WANT$ TO4 

,!N F9ALLY !RE'S ! OV]SEAS DEBT4 ,EV5 ?AT ISN'T MU* DIFF]5T4 ,IF Y\ LOOK AT :AT ACTUALLY HAPP5S ) ALL ?OSE ,TREASURY BONDS FLOAT+ >\ND 9 =EIGN BANKS - WELL1 ! VA/ MAJORITY NEV] GET CALL$ 94 ,! BANKS HOLD+ !M JU/ ROLL !M OV] EV]Y FIVE OR T5 YE>S1 AS SOON AS !Y MATURE4 

,:Y8 ,BECAUSE1 AS ,I SAY1 ,T-BONDS HAVE COME TO REPLACE GOLD AS ! WORLD'S RES]VE CURR5CY4 ,SO !RE'S ! F9AL REASON ! ANALOGY IS SO SILLY4 ,:5 Y\ OR A MEMB] ( Y\R H\SEHOLD WRITES A *ECK1 ! RECIPI5T T5DS TO CA% IT4 ,:5 ! ,U,S GOV]NM5T WRITES A *ECK1 & GIVES A =EIGN BANK OR GOV]NM5T AN ,I,\1 ! RECIPI5T ALMO/ NEV] DOES4 

,BUT ?AT'S JU/ A V]Y SUP]FICIAL EXPLANATION4 ,ON A DEEP] LEVEL1 ! ANALOGY IS EV5 MORE ABSURD1 BECAUSE1 ! ,U,S NE$S TO MA9TA9 A DEFICIT1 OR CATA/ROPHE W\LD 5SUE4 ,! REAL SECRET ( ! SY/EM IS ?AT !SE ,I,\S BASICALLY >E MONEY4 ,MOD]N MONEY MA9LY CONSI/S ( GOV]NM5T DEBT4 

,! CURR5T F9ANCIAL SY/EM - BAS$ ON C5TRAL BANKS - REALLY GOES BACK TO #afid :5 A GR\P ( ,LONDON M]*ANTS MADE A LOAN TO ! ,K+ ( ,5GL& TO FI<T SOME W> 9 ,FRANCE1 & HE GAVE !M ! RI<T TO CALL !MSELVES 0! ,BANK ( ,5GL&0 & LOAN ! MONEY HE [$ TO !M TO O!R PEOPLE 9 ! =M ( BANK NOTES4 ,?AT'S :AT ,BRITI% MONEY ACTUALLY IS -- AN ,I,\ FROM ! K+1 AN UNCA%$ *ECK4 

,U,S DOLL>S >E EXACTLY ! SAME4 ,!Y'RE GOV]NM5T DEBT CIRCULAT+ ?R\< ! ,F$]AL ,RES]VE1 :I* JU/ MAKES UP MONEY1 LOANS IT TO ! GOV]NM5T1 & !N CIRCULATES ! DEBT4 ,!Y TRY TO MAKE ! SY/EM AS COMPLICAT$ AS POSSIBLE SO ORD9>Y PEOPLE WON'T UND]/& :AT'S GO+ ON1 BUT IT MEANS ?AT ! REAL DIRTY SECRET ( ! SY/EM IS ?AT IF ! DEFICIT EV] COMPLETELY W5T AWAY1 IT W\LD CAUSE A COMPLETE CATA/ROPHE4 

,JU/ AS ! ,K+ CAN NEV] REPAY HIS DEBT TO ! ,BANK ( ,5GL&1 OR ELSE ! ,BRITI% CURR5CY SY/EM W\LD COLLAPSE1 ! ,U,S HAS TO MA9TA9 A NATIONAL DEBT - AS 9DE$1 IT ALWAYS HAS1 WE'VE ALWAYS BE5 9 >RE>S S9CE 9DEP5D5CE - OR !RE'D BE NO MONEY4 7,OR IF Y\ WANT TO BE TE*NICAL1 PRIVATE BANKS W\LD HAVE TO MAKE UP ALL ! MONEY BY MAK+ LOANS1 BUT ( C\RSE1 AT ! MOM5T1 \R BIG PROBLEM IS ?AT !Y >5'T DO+ ?AT47 

,! SY/EM MI<T SEEM CRAZY - & 9 A WAY IT IS - S9CE IT SEEMS LIKE ! GOV]NM5T IS WRIT+ *ECKS ?AT NEV] GET CA%$ - :Y W\LD ANYONE GO ALONG ) ?AT8 

,BUT ?AT'S :]E TAXES COME 94 ,! GOV]NM5T EFFECTIVELY SAYS 0WELL1 !SE DOLL>S >E CIRCULAT+ ,U,S DEBT1 & WE'RE NOT GO+ TO GIVE Y\ ANY?+ = !M1 EXACTLY1 BUT WE WILL LET Y\ USE IT TO CANCEL \T ! DEBT ?AT WE'VE DECID$ Y\ [E TO US0 - Y\R 9COME TAX1 ETC4 ,U,S TAXES CAN ONLY BE PAID 9 DOLL>S4 ,SO TO KEEP ! SY/EM RUNN+1 ! GOV]NM5T HAS TO DEM& TAXES1 BUT !Y ALSO HAVE TO MAKE SURE !Y SP5D MORE ?AN !Y GET1 TO KEEP ! ,I,\S ALL CIRCULAT+ >\ND4 

,SO Y\ SEE :Y ,I SAY IT'S A RIDICUL\S ANALOGY8 

,*9A IS ! L>GE/ =EIGN CR$ITOR TO ! ,U4,S41 HOLD+ MORE ?AN @s#a TRILLION 9 ,TREASURY DEBT AS ( ?IS PA/ ,M>*4 ,REUT]S REPORT$ LA/ WEEK ?AT AN ADVIS] TO ! ,PEOPLE'S ,BANK ( ,*9A SAID A DEFAULT C\LD UND]M9E ! ,U4,S4 DOLL>4 0,I ?9K !RE IS A RISK ?AT ! ,U4,S4 DEBT DEFAULT MAY HAPP540 ,I MEAN1 WE ALL GR[ UP BELIEV+ ?AT PAY+ Y\R DEBTS IS ! RI<T ?+ TO DO4 ,IS IT ALWAYS8 

,WELL1 A LOT ( :AT 0GR[+ UP0 SEEMS TO REALLY MEAN IS FIGUR+ \T ?AT 9 ! REAL WORLD1 ?OSE MORAL RULES !Y TEA* Y\ AS A *ILD DON'T ALWAYS APPLY4 ,BUS9ESS [N]S C]TA9LY DON'T FEEL ?AT DEBTS >E SACR$ - ,I CAN'T REMEMB] ! LA/ TIME ,I DID FREELANCE WORK & MY EMPLOY] DIDN'T AT LEA/ TRY PRET5D+ HE JU/ =GOT TO PAY ME6 

,IF ! /UDY ( HI/ORY %[S US ANY?+1 IT'S ?AT IT ALL COMES D[N TO P[]4 ,! PEOPLE ON ! TOP KN[ ?AT EV]Y?+ IS NEGOTIABLE4 ,IF !RE'S A REAL PROBLEM1 Y\ CAN ALWAYS WORK SOME?+ \T - :I* IS :AT WE SAW 9 #b#h1 :5 ! F9ANCIAL E/ABLI%M5T EFFECTIVELY CONV9C$ ! BO? POLITICAL P>TIES TO /EP 9 & TAKE C>E ( SEV]AL TRILLION DOLL>S ( !IR GAMBL+ DEBTS4 

,! RI* HAVE ALWAYS BE5 CAPABLE ( EXTRAORD9>Y ACTS ( G5]OSITY & =GIV5ESS :5 DEAL+ ) EA* O!R4 ,! ABSOLUTE MORALITY ( DEBT IS MEANT = US LESS] MORTALS - S9CE IT'S ! BE/ MEANS EV] DISCOV]$ TO TAKE A SITUATION ( MASSIVE 9EQUALITY & MAKE IT SEEM LIKE ! VICTIMS >E TO BLAME4 

,! SAME ?+ GOES = 9T]NATIONAL RELATIONS4 ,IF ,MOZAMBIQUE [ES ! ,U,S #a BILLION DOLL>S1 ,MOZAMBIQUE HAS A BIG PROBLEM4 ,IF ! ,U,S [ES ,JAPAN#a BILLION DOLL>S1 !N ,JAPAN HAS A PROBLEM1 BECAUSE !RE'S NO WAY IT CAN =CE ! ,U,S TO DO ANY?+ IT DOESN'T WANT TO4 

,OR EV5 ,FRANCE3 9 #aiga :5 ,*>LES DE ,GAULLE TRI$ TO CALL 9 HIS ,U,S DEBT 9 GOLD1 :I* HE WAS LEGALLY 5TITL$ TO DO1 ,NIXON JU/ %RUGG$ HIS %\LD]S SAID 0F9E1 !N ,I'LL GO (F ! GOLD /&>D40 ,:AT WAS ,FRANCE GO+ TO DO8 ,NUKE US8 

,ACTUALLY1 MO/ ( ?OSE C\NTRIES ?AT [N ALL ?OSE ,T-BONDS KN[ !Y >E LOS+ MONEY BY SITT+ ON !M 7! YIELDS >E LESS ?AN 9FLATION71 & !Y'LL NEV] GET ALL !IR MONEY BACK4 ,BUT MO/ ( !M - ,JAPAN1 ,S\? ,KOREA1 ! ,GULF ,/ATES - >E REGIMES UND] ,U,S MILIT>Y PROTECTION1 9 FACT1 ) HUGE ,U,S MILIT>Y BASES SITT+ RI<T ON TOP ( !M1 SO REALLY WE'RE TALK+ AB\T PROTECTION MONEY--9 :ATEV] S5SE ( ! T]M4 

,OBVI\SLY1 ,*9A IS A DIFF]5T /ORY4 ,!IR BEHAVIOR IS A LITTLE H>D] TO EXPLA91 S9CE !Y >E EFFECTIVELY %IPP+ 5ORM\S AM\NTS ( CONSUM] GOODS TO US ON CR$IT & MU/ KN[ !Y'RE NEV] GO+ TO GET PAID BACK4 ,BUT H]E ,I ?9K Y\ HAVE TO REMEMB] TWO ?+S4 ,FIR/1 ,*9A HAS TWO ?\S& YE>S ( EXP]I5CE FLOOD+ POT5TIAL RIVAL P[]S ) RI*ES1 SO AS TO MAKE !M SPOIL$ & DEP5D5T4 ,IF IT WORK$ ON ! /EPPE NOMADS1 :Y NOT ! ,U,S- :I* !Y PROBABLY SEE AS JU/ AS SC>Y1 VIOL5T B>B>IANS8 

,SECOND1 ! ,*9ESE LEAD]%IP MI<T BE RUNN+ A QUASI-CAPITALI/ /ATE BUT !SE GUYS W]E ALL TRA9$ AS ,M>XI/S4 ,!Y PROBABLY /ILL SEE ALL ?IS HI< F9ANCE AS SO MU* MUMBO JUMBO - 0IDEOLOGICAL SUP]/RUCTURE0 AS ! ,M>XI/S LIKE TO PUT IT - IT ISN'T REALLY REAL4 

,:AT'S REAL IS HI<WAYS1 FACTORIES1 & TE*NOLOGY4 ,& !Y >E GETT+ MORE & MORE ( ?AT1 & WE'RE GETT+ LESS4 ,SO !Y'RE P]FECTLY HAPPY ) >RANGEM5TS AS !Y /&4 

,I SUSPECT !RE'S A K9D ( TACIT DEAL1 H]E1 :E!R EXPLICITLY /AT$ OR NOT3 ! ,*9ESE GOV]NM5T P]IODICALLY PRET5DS TO GET ALL WORK$ UP OV] ! ,U,S DEBT1 EV5 ?\< !Y DON'T C>E1 & 9 EX*ANGE1 ! ,U,S ONLY PRET5DS TO GET WORK$ UP OV] !IR CON/ANT PIRAT+ ( 9TELLECTUAL PROP]TY RI<TS & TE*NOLOGY TRANSF]S1 BUT 9 FACT1 LETS !M GET AWAY ) IT4 ,! RESULT3 WE GET ,WALM>T1 & !Y GET NANOTE*NOLOGY1 SUP]FA/ TRA9S1 & A SPACE PROGRAM4 ,SO :AT DO !Y C>E IF WE NEV] 0PAY ! DEBT80 

,Y\ EXAM9$ #e YE>S ( ECONOMIC & CULTURAL BEHAVIOR4 ,W\LD Y\ EV] SUGGE/ ?AT CAPITALISM AS WE KN[ IT NE$S TO *ANGE8 

,! MO/ REM>KABLE ?+ ,I DISCOV]$ 9 MY HI/ORICAL RESE>*ES IS ?AT VIRTUAL MONEY IS NO?+ NEW4 ,ACTUALLY1 IT'S ! ORIG9AL =M ( MONEY4 

,BACK 9 ANCI5T ,MESOPOTAMIA1 PEOPLE DIDN'T GO TO ! B> OR M>KET ) T9Y BITS ( SILV]2 !Y PUT ?+S ON ! TAB4 ,M]*ANTS US$ EXP5SE ACC\NTS4 ,COMM]CE MEANT TRU/4 ,:AT WE N[ ?9K ( AS CA%1 9 CONTRA/ - GOLD & SILV] CO9AGE1 & ) !M1 IMP]SONAL1 CA% M>KETS - WAS BASICALLY 9V5T$ MU* LAT]1 MO/LY TO PAY SOLDI]S1 & AS A SIDE-EFFECT ( MILIT>Y OP]ATIONS4 

,IF Y\ LOOK AT ! LA/ FIVE ?\S& YE>S ( HI/ORY1 :AT Y\ F9D IS AN ALT]NATION ( P]IODS :]E MONEY BASICALLY MEANS CR$IT1 P]IODS ( MO/LY VIRTUAL MONEY1 & P]IODS :]E IT'S ASSUM$ TO BE A PHYSICAL ?+4 ,IT />TS AS CR$IT4 

,!N >\ND ! #g? C5TURY ,B,C1 Y\ SEE1 SIMULTANE\SLY 9 ,GREECE1 ,9DIA1 & ,*9A1 ! 9V5TION ( CO9AGE - & = MAYBE A ?\S& YE>S AFT] ?AT1 VA/ EMPIRES1 ) HUGE /&+ >MIES PAID 9 CA%1 CA% M>KETS1 :]E !Y'RE AMONG O!R ?+S SELL+ ALL ! SLAVES CONQU]$ 9 ! W>S1 MO/ ( :OM 5D UP WORK+ 9 ! M9ES PRODUC+ MORE GOLD & SILV] TO PAY ! TROOPS )4 

,9 ! ,MIDDLE ,AGES IT ALL %IFTS BACK AGA9 - ! GREAT RELIGIONS1 :I* REALLY />T$ AS ANTI-W> MOVEM5TS1 TAKE OV]1 ! >MIES >E DISB&$1 CA% DISAPPE>S1 PEOPLE GO BACK TO VIRTUAL MONEY 7BO? *ECKS & PAP] MONEY = 9/ANCE W]E ,M$IEVAL 9V5TIONS47 

,!N1 AFT] #adib IT SW+S ! O!R WAY1 AGA9 - WE'RE BACK TO GOLD & SILV] MONEY1 VA/ EMPIRES1 SLAV]Y COMES BACK 7& SOME MI<T >GUE ITS /ILL H]E - IF ,PLATO OR ,>I/OTLE W]E ALIVE TODAY ,I D\BT !Y'D SEE MU* DI/9CTION BETWE5 SELL+ Y\RSELF & R5T+ Y\RSELF1 SO !Y'D PROBABLY SEE MO/ ,AM]ICANS AS1 EFFECTIVELY SLAVES74 ,?AT'S ! P]IOD ( HI/ORY ?AT'S JU/ 5D+ N[4 

,?IS IS EPO*AL4 ,*ANGES ON ?IS SCALE ONLY HAPP5 ONCE EV]Y #e OR EV5 #a YE>S4 

,:AT WILL IT MEAN8 ,WELL OBVI\SLY IT'S IMPOSSIBLE TO SAY = SURE4 ,& TO A L>GE DEGREE IT'S REALLY UP TO US H[ IT ALL TURNS \T4 

,BUT ONE ?+ ,I HAVE NOTIC$ IS ?AT 9 P]IODS DOM9AT$ BY VIRTUAL MONEY1 IT BECOMES IMPOSSIBLE TO D5Y ?AT MONEY IS JU/ A PROMISE1 ?AT IT'S JU/ A SET ( UND]/&+S WE HAVE ) ONE ANO!R--& !RE=E1 ?AT Y\ NE$ SOME K9D ( WAT*DOG 9/ITUTION 9 PLACE TO MAKE SURE ?+S DON'T GET COMPLETELY \T ( H&4 

,9 ! ANCI5T ,NE> ,EA/1 !Y US$ TO SIMPLY DECL>E P]IODIC DEBT CANCELATIONS4 ,! ,M$IEVAL RELIGI\S AU?ORITIES T5D$ TO BAN 9T]E/ PAYM5TS \TRI<T4 ,ALWAYS !RE WAS SOME K9D ( OV]>*+ 9/ITUTION1 USUALLY BIGG] ?AN ANY GOV]NM5T1 TO PROTECT DEBTORS1 TO PREV5T ! BULK ( ! POPULATION FROM SIMPLY BE+ R$UC$ TO SLAVES 7:I*1 ( C\RSE1 IS H[ MO/ 9DEBT$ ,AM]ICANS FEEL MO/ ( ! TIME47 

,( C\RSE ?IS TIME >\ND1 ! FIR/ ?+ WE DID WAS CREATE ! ,I,M,F1 A VA/ OV]>*+ 9/ITUTION DESIGN$ BASICALLY TO PROTECT CR$ITORS4 ,BUT 7MO/ PEOPLE DON'T KN[ ?IS7 ?AT DIDN'T WORK \T TOO WELL4 ,! ,I,M,F HAS BE5 EFFECTIVELY KICK$ \T ( ,ASIA & ,LAT9 ,AM]ICA = SOME TIME N[1 & N[1 MO/ REC5TLY1 FROM ,EGYPT4 ,SO ?AT MODEL HAS DEF9ITELY FAIL$4 

,I ?9K IT'S SIGNIFICANT ?AT GR[+ OPPOSITION TO ! 0DEBT CRISES0 BE+ 9FLICT$ ON PEOPLE 9 ,EUROPE1 9 PLACES LIKE ,GREECE & ,SPA91 IS A CALL = 0REAL DEMOCRACY40 

,:AT !Y'RE EFFECTIVELY SAY+ IS1 0,9 #b#h1 ! F9ANCIAL ELITES LET ! CAT \T ( ! BAG :5 !Y REFUS$ TO LET !IR BANKS FAIL LIKE ! TEXTBOOKS SAY !Y W]E SUPPOS$ TO4 ,AS A RESULT1 WE LE>N$ ?AT ! /ORY AB\T CAPITALISM WE'D BE5 HE>+ = ALL !SE YE>S WASN'T REALLY TRUE4 ,M>KETS DON'T REALLY RUN !MSELVES1 & DEBTS CAN BE F9AGL$ \T ( EXI/5CE IF Y\ REALLY WANT !M TO BE4 

0,BUT IF ?AT'S TRUE1 IF DEBT IS JU/ A PROMISE & PROMISES CAN BE R5EGOTIAT$1 !N IF DEMOCRACY IS GO+ TO MEAN ANY?+1 IT HAS TO MEAN ?AT IT'S US1 ! PUBLIC1 ?AT GETS ! ULTIMATE SAY OV] H[ ?AT HAPP5S - NOT SOME H$GE FUND MANAG]40 

,IF !Y W91 !N WE'RE GO+ TO BE TALK+ AB\T A V]Y DIFF]5T ECONOMIC SY/EM4 ,:E!R Y\ EV5 WANT TO CALL IT 0CAPITALISM0 IS PROBABLY JU/ A MATT] ( TA/E4 ,BUT IT GIVES Y\ A S5SE ( JU/ H[ MU* IS AT /AKE4 

,FROM 3 ,!,AN>*I/,LIBR>Y4ORG4 

,*RONOLOGY 3 
,JANU>Y #f1 #bba 3 ,DAVID ,GRAEB] /UDI$ #e1 YE>S ( DEBT -- ,ADD$4 
,JANU>Y #d1 #bbb 3 ,DAVID ,GRAEB] /UDI$ #e1 YE>S ( DEBT -- ,UPDAT$4 

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