Advantage 33 – Repayment of state debt in just a few years

Excerpt from the book »Gradido – Natural Economy of Life«

»There should be an orderly state insolvency procedure,

in which the creditors are also involved.«

– Angela Merkel

German Chancellor, 4 May 2010

Since May 2010 at least there has been completely official talk about impending state bankruptcies in Europe. These are a result of the system and will come sooner or later in the old system. The bailout funds will not prevent this and they actually lead to even more state debt. There may also be a collapse of the euro or a complete financial crash.

You remember that the present money is created through borrowing and therefore debt and assets have to be roughly equal. Conversely, this means that the cancellation of debt also means the cancellation of assets, no matter if it be a haircut or repayment of the debt.

Our model for repaying the state debts starts with a step-by-step introduction of the gradido. Parallel to this, part of private assets are changed from euros to gradidos. The euros collected from the asset exchange are used to repay the state debts. The loss of money resulting from this is offset by introducing the gradido. The model can succeed in all countries where there are sufficient private assets. I would like to illustrate it with the example of Germany.

The state debts in Germany have now risen to some 2 trillion euros. The total assets in Germany amount to some 5 trillion euros. A gradual asset exchange can be arranged in conjunction with the plan for phasing in the gradido. In phase 1 one percent of all assets would be changed from euros into gradidos annually. In phase 2 two percent etc. up to a total of five percent annually in phase 5.

That means that 250 billions euros would be changed into gradidos every year in phase 5. 100 billion euros would be needed to pay the interest and 150 billion would remain for repayment of the debts. After ten years 1.5 billion euros would have been repaid. Strictly speaking, it is even more because the interest has decreased as well. The remaining 500 billion euros will have been fully repaid in another four years.

The advantage for the states is obvious: they repay their debts. And the advantage for the banks is that they get their money back. How does it benefit private individuals?