To DESTROY DEBT you HAVE to DESTROY SAVINGS.

Think about it.

Debt can NOT be created until someone has saved money that can be borrowed.

If you then "reduce" the amount of the debt you are ALSO SIMULTANEOUSLY reducing the savings that the debt is to go to repay.

Debt is the opposite side of the coin from savings.

Same coin, just different sides.

once you understand that UNDERLYING BASIC CONCEPT (debt = savings: destroy one you automatically destroy the other), then you can see the hoops that governments try to jump through as debt becomes uncollectable to first obtain MORE of people's savings to keep the game going a while longer and then to somehow try to destroy people's savings without them realizing that what is going on is a CALCULATED destruction of their savings.

Sovereign Debt at it's core is not just merely owing more than you can repay even the interest on out of current economic activity ... but includes promised social welfare payments and pension payments!! THIS IS A CONCEPT THAT VIRTUALLY NO ACADEMIC ECONOMISTS EVEN RECOGNIZES EXISTS!!. It is however a key element in the "debt must be repaid or repudiated" financial calculation.

Seizing Pensions is a time honored way to seize the saver's money, as is people keeping their money in a State Owned bank. Inflation is another way to steal from the savers. "Taxes" on Savings or on Capital is another way.

As countries struggle to make current payments on excessive amounts of debts (including guaranteed social welfare transfer payments - see above) that are in excess of the country's ability to generate income to even pay the current interest or payments required look for governments to increasingly try EVERYTING to squeeze the Saver's Class and the actual productive members of society so as to protect the Creditor Class (since it is the Creditor Class that generally controls the levers of political power in most western societies).

So Mr. Sheldon is correct ... this AND OTHER SCHEMES are coming to a place near you, and in the very near future!! (Europe probably first, but eventually reaching even that port of last refuge, the United States)

Old Trader
(and Longwave Economic follower)