Date: 27th November 2020

More and more credible experts are exploring the possibility of wiping out public debts to get out of the over-indebtedness caused by crises, which blocks and disrupts the recovery of economies and the functioning of markets.

This is the case of the book “Effacer les dettes publiques” recently published by Hubert Rodarie, a respected leader in the insurance world and elected this year as President of the French Association of Institutional Investors (AF2i). The book talks  about “erasing public debts" and how this is, in fact, not just possible, but necessary.

So, how can we emerge from the crisis and reinstate sustainable growth?

Rodarie proposes three avenues for action:

1- Cancelling significant amounts of public debt is necessary, possible and can be done without damage.

2- Controlling the money supply through monetary reform, decentralisation and relocation of part of the production, allowing for the integration of environmental and climate objectives into the organisation of trade.

3- Rediscovering a coherent international monetary system adapted to the new multipolar nature of the world economy. (p.63)

The book also addresses the effects of the “Spiralling Debt” triggered by the current health crisis, on top of the banking crisis of 2008, and how globalisation has been acting as a catalyst. "Without inflationary measures, most of these debts will never be repaid unless governments take on additional loans”. (p.51), says Rodarie in his book; “Even the richest and most powerful countries are no longer capable of repaying their debts without the help of high inflation. Their savings can no longer create sufficient added value to lower the amount of debt without catastrophe. "(P.94)

To learn more about Hubert Rodarie`s “Effacer les dettes publiques” , please consult for the  original article (in French) here.