An editorial in this week’s The Economist calls for Greece’s official creditors to write off a big chunk of the Greek debt so that country can start over again.
Debt is not a problem restricted to Greece. It is a problem for most of the countries around the world.
So much debt, government and consumer, has been for projects that will not earn the income with which to repay the debt. There is little hope any of this debt will ever be repaid and therefore it will eventually have to be written off or defaulted.
The down side of this is that a lot of people are going to lose their savings.
Once the big crash happens I hope the survivors will be smart enough to find a way of creating money that is not based on debt.