Default or Restructure

SOLUTION Cover

QUESTION: 

Hi Martin,

I was reading your blog posting on, “Real Estate 15yr v 30yr Mortgage & New Electronic Currency Coming” and you state that with the new electronic currency coming (which, as you say, will be the new reserve currency), governments should not be able to borrow and debts should be eliminated.  I agree that the governments should not be allowed to borrow, but how would debts be eliminated?

Foreign governments (and private holders) that hold US debt would lose trillions.  Wouldn’t this cause a war?  Or are you saying that the US, along other governments, will cancel their debt since there is a rise the cycle of war (probable war on the horizon)?

I fully agree with that governments have no intention on paying anything back anyway, I’m just a little confused how this would unfold…

Outstanding work, you’ve taught me so much!  Thanks!

ANSWER: That is outlined in the Solution Conference. We can only default or restructure. The latter allows society to function whereas the former wipes out everything from banks to pensions. The former is unlikely by design. Debts can be eliminated by restructure.