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Just give everyone on earth $100,000

Let’s face it, the quick and easy (theoretical) way out of a global debt crisis is a global helicopter drop.

Right now it looks like the economy of planet earth is going to be stuck for the next 20 years with all parties nervously thrusting and parrying, avoiding reality, not marking to market, not making loans, not making capital expenditures, pretending things are hedged, worried about their counterparties, finger pointing, blaming PIIGS, blaming central bankers, blaming liberals, blaming conservatives, etc, etc.

We could end the whole ordeal and get the most orderly reset possible by just giving everyone, man, woman, and child, a massive amount of cash. Devalue everything. If someone has debt, the creditors get first dibs and anything left over goes to the person. Creditors take a big hit, but they don’t “fail” (God knows we can’t let banks fail or the space-time continuum would discontinue), counterparty risk would go away, we’d all adjust prices, the vampire squid could re-settle in its rock and set in place its next 50 year global destruction plan, and this generation and the next could get on with business.

Have we western democracies learned our lesson? No. But why stretch out the torture for decades. Earth needs to ask itself the simple question, are you going to let large banks fail or not. If the answer is “no” (and you know that’s what the answer is), then just devalue everything, reset, and move on.

I know it’s not going to happen. May as well settle in and hope the grandkids enjoy reading about the ongoing hijinks of Merkozy, Berlusconi, G-Pap, etc, 30 years from now.

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