Read the rest here: http://www.cnbc.com/id/44229642It might be time for something that hasn't been done since the 1930s to get Americans spending again: national debt forgiveness, Stephen Roach told CNBC Monday.
A stronger dollar or higher interest rates would encourage consumption and saving, Roach said, but he prefers the more "direct approach" of coming up with "ways to forgive the excesses of mortgage, installment and revolving credit, as what was done in the 1930s, that will help consumers get through the pain of deleveraging sooner rather than later."
I was asked what an Austrian would think of this plan. While I would think that this is obviously better than forgiving corporate debt, I am drawing a blank on how to respond. I am curious to see what everyone thinks.
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