USA Debt Jubilee

In The American Jubilee, I'll show you the various ways it could play out.

One proposed scenario comes from Rob Johnson, a former banker, who now runs the Institute of New Economic Thinking. He says:

"You call a month-long bank holiday for the twenty largest banks, and that holds everything in place while the regulators mark down the assets and see how everybody's losses will affect everyone else.

"Then you wipe out stockholders, wipe out management, possibly some of the unsecured debt... Once everybody has taken their hit and you've wiped out existing stockholders, then the government comes in and properly, transparently recapitalizes all of them. As these new institutions gain a footing, eventually they can be sold back to the private market."

No one can know exactly how it will be done, but through one mechanism or another, the government will seek to reset the financial system... and they will start by wiping out trillions of dollars in bad debt.

Car companies, homebuilders, credit card companies, insurance firms, banks, other lending institutions, and any business operating with leverage, will take a huge hit.

Stocks will fall considerably. Banks will close. There will be trillions in losses.

In fact, at the end of the day, I believe the losses at an institution like Wells Fargo could be enough to start a bank run.

First, we'll provide the ultimate guide to understanding EVERYTHING YOU DO NOT want to own as America's Jubilee unfolds.

This is important, because there will be huge losses.

A Harvard study showed that during a Debt Jubilee in the 1930s, the U.S. government's radical changes in the financial system took more than $700 million in a single year from one segment of the population. Another change caused millions of Americans to lose 69% of their savings, practically overnight.

In The American Jubilee, you'll learn not only what happened in the 1930s... but also what happened during two of America's other Jubilees, in the 1840s and 1960s. And you'll learn how other countries have implemented Jubilees of their own...

In 2015, for example, the Croatian government used a Jubilee to erase more than $20 million in debts for 60,000 people. This was money owed to banks, telecom operators, municipal authorities, and utility companies.

Not a single person or investor was refunded for their losses.

And it's probably no surprise that the stock market went down significantly over the next year.

Over the past ten years, students (most of whom are young and have virtually no income) have racked up enormous debts, which currently total about $1.5 trillion.

Incredibly, that's what our entire federal government owed a little more than 30 years ago.

And these debts have ballooned to absurd amounts. The number of students with debts over $100,000 has quadrupled in the last ten years. Most of this money will never, ever be repaid.

And most Americans don't realize that the Millennials (who hold nearly 65% of this debt) are now our country's largest generation, outnumbering Baby Boomers.

Just think about the political implications...

These people have an enormous stake in whether or not a national Debt Jubilee is declared.

You see, when the rich—a very small percentage of the population—get in trouble with debt, it's an economic problem.

But when the poor and middle class—a huge percentage of the population—get in trouble with debt, it's a political problem.

And there will be major consequences...

Millions of investors, pensioners, insurance customers, and creditors will lose a fortune.

Stocks will collapse. Dozens of companies will go bankrupt.

Just one quick example of how this problem will affect EVERYONE in America...

Do you remember during the last crisis... the mortgage crisis... how many lenders never bothered to verify the income of people they were lending money to?

Some referred to these as "Liar Loans," which allowed borrowers to make up whatever income figure they wanted... and get a much more expensive house than they could realistically afford.

Well... believe it or not, the same thing is happening again right now with auto loans.

One company I've written about more than a dozen times has made an extraordinary number of these "Liar Loans" for cars. And a recent Bloomberg story says this firm verified the income on only 8% of the loans they made!

And guess what...

Just like the mortgage crisis of 2008, these loans have been packaged up into what are known as "Asset Backed Securities," and sold to hundreds of mutual funds, insurance companies, investment firms, even state pension plans.

The financial lawyer on my research team found more than 120 entities that own these dangerous "Asset Backed Securities."

I'm sure you'll recognize the names:

JP Morgan Chase

TIAA-CREF

The State of Florida

Blackrock

Vanguard Group

T Rowe Price

Wells Fargo

UBS

Pacific Life Insurance Company

Prudential Financial

Hartford Financial Group

Swiss RE

Transamerica Investment Services

London Stock Exchange Group

Deutsche Bank

MMM Healthcare

Macquarie Group

Goldman Sachs

Invesco LTD

Bank of New York Mellon

Eaton Vance

Regions Bank

Zurich Global

People's United Bank

Franklin Resources

Massachusetts Mass Mutual Insurance.

Merrill Lynch

When the Debt Jubilee arrives, the problems with all this bad consumer debt will hit at once.

Everyone will freak out.

And that's the biggest problem—the uncertainty.

No one will know for months how it will all get sorted out. So the markets will react violently.

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