A new initiative is re-energising the Occupy movement. Called the Rolling Jubilee, it is a plan to use money from donations to buy distressed consumer debt from lenders at a marked down price, just as debt collection agencies normally would. But instead of hounding debtors for payments, it will simply cancel the debts. The hope is that the liberated debtors will themselves contribute to the fund, “rolling” the jubilee forward.
The Rolling Jubilee is a genius move for several reasons. First, debt relief is a transpartisan message that eludes conventional political categorisation. As such, it returns Occupy to its origins as an advocate for the wellbeing of ordinary people, neither leftwing nor rightwing. The Rolling Jubilee says, non-threateningly, “We just want to help people in this unfair system.”
But despite its non-threatening appearance, the Rolling Jubilee has significant transformative potential. Two pillars uphold the present debt regime: the moral legitimacy of debt in society’s eyes, ie, the idea that a person “should” pay back what he owes; and the coercive mechanisms that enforce repayment, such as harassment, seizure of assets, garnishment of wages, denial of employment or housing, and even imprisonment. The Rolling Jubilee erodes both. It destigmatises debt by saying, “we’re all in this together, we believe your situation is unfair, not shameful, so we’re going to help you out”. And it lessens the severity of the consequences of default. If defaulting means you might get bailed out, why keep paying?
For this reason, we might expect lenders to balk at co-operating with the Rolling Jubilee, perhaps by refusing to sell loans to anyone who doesn’t agree to seek collection. So here is a third reason why the idea is so brilliant: if the lenders block debt cancellation even when it comes at no cost to themselves (as they would have sold it at the same price to a collection agency), they appear as a bunch of greedy, vindictive Scrooges. Given their current vulnerability, banks might not want to incite hostility by preventing people from helping each other out.
Accordingly, it is important that the Jubilee organisers continue to frame it in precisely that way: people helping each other out of hardship. Yes, they might understand that its political significance runs deeper, but if they portray it as a political ploy then it will be met as such by the banks or other authorities. Public opinion might also not be as sympathetic.
This also goes for the way the organisers portray it to themselves. In a political system that is lost in a maelstrom of hype, spin and messaging, we crave authenticity in others and in ourselves. Let the Rolling Jubilee stay grounded in the simple goal of freeing people from debt. The political effect will be greater, not less, when it comes from a place of sincerity.
The Rolling Jubilee could influence economic policy as a model for a very different kind of bailout in response to the next financial crisis. The problem of unpayable debts bedevils every corner of our financial system – public, corporate, and personal. So far, the response of the monetary and fiscal authorities to nearly every financial crisis has been to bail out the creditors but not the debtors. Governments and central banks purchase all kinds of shoddy loans from the private sector, but rather than reduce interest or principal on those loans, they merely become the new creditor. The underwater homeowner, the indebted university graduate, the laid-off worker juggling credit cards … they get no relief at all.
The Rolling Jubilee brings a different kind of solution into the public consciousness. The next time a systemic crisis breaks, central banks can rescue the banking system by once again buying the delinquent loans – and then cancel them or reduce the amount borrowers owe. Central banks, with their unlimited capacity to print money, have the power to do this at no cost to the taxpayer. The result would be a release of pent-up consumer purchasing power that had been stuck in debt service. Rising demand would fuel employment, wages, and a broad-based economic expansion.
Would this solution be inflationary? Yes. But a little inflation isn’t necessarily a bad thing, as long as wages rise as fast as prices. Then it is an equalizer of wealth, as the relative value of hoarded wealth shrinks.
Debt cancellation, whether a “people’s bailout” or government policy, is only part of the solution to our economic woes. Deep systemic reforms are necessary, especially given the reality that we are operating a growth-dependent system on a finite planet. But right now, debt is the issue staring us in the face. As always, the most innovative solutions rise from the margins. The Rolling Jubilee may be showing us a glimpse of what is to come.
The Coffee Committee, a stand in for Occupy Denver’s Thunderdome Kitchen, is gathering supplies, recruits, and transportation to get to the affected area with a mobile kitchen. OCCUPY SANDY RESOURCES: http://www.lizgreeen.com/occupy-sandy-storm-relief PLEASE DONATE WHATEVER YOU CAN Please please share this, there are hungry homeless people on the east coast that are in need of your love and support! A dollar helps, a reblog helps, anything you can do to further this message helps!
This is a long post but it’s about something pretty interesting so I hope you’ll indulge …
Like many folks, Occupy Wall Street has been some doing good work in the aftermath of Hurricane Sandy, helping people on the ground.
Now OWS is launching the ROLLING JUBILEE, a program that has been in development for months. OWS is going to start buying distressed debt (medical bills, student loans, etc.) in order to forgive it. As a test run, we spent $500, which bought $14,000 of distressed debt. We then ERASED THAT DEBT. (If you’re a debt broker, once you own someone’s debt you can do whatever you want with it — traditionally, you hound debtors to their grave trying to collect. We’re playing a different game. A MORE AWESOME GAME.)
This is a simple, powerful way to help folks in need — to free them from heavy debt loads so they can focus on being productive, happy and healthy. As you can see from our test run, the return on investment approaches 30:1. That’s a crazy bargain!
Now, after many consultations with attorneys, the IRS, and our moles in the debt-brokerage world, we are ready to take the Rolling Jubilee program LIVE and NATIONWIDE, buying debt in communities that have been struggling during the recession.
We’re kicking things off with a show called THE PEOPLE’S BAILOUT at Le Poisson Rouge on Thursday, November 15. It will also stream online, like a good ol’-fashioned telethon!
Friends, the line-up is insane. Performers include:
- JEFF MANGUM (Neutral Milk Hotel)
- JANEANE GAROFALO
- GUY PICCIOTTO (Fugazi)
- LIZZ WINSTEAD
- HARI KONDABOLU
- TUNDE ADEBIMPE and KYP MALONE (TV on the Radio)
- members of DAS RACIST
and other great talents including a group of radical nuns! I’ll be playing the role of JERRY LEWIS, emceeing in my tuxedo from MEN’S WEARHOUSE.
This will be a joyful, positive night about people banding together and subverting a predatory financial system in order to help each other. BOOM! That’s a movie pitch right there, goddamn why am I not a Hollywood mogul?!
Anyway, HERE IS THE INFORMATION about THE PEOPLE’S BAILOUT:
- The LIVE SHOW is at Le Poisson Rouge on THURSDAY 11/15, 8 - 11 PM. Tickets are $25 (each ticket buys $500 of distressed debt).
- The LIVE STREAM will be at http://rollingjubilee.org (you’ll be able to donate online)
- Here’s the FACEBOOK PAGE
- The HASHTAG is #peoplesbailout
HOW YOU CAN HELP:
- Spread the word! Share this info with your friends, family, and followers
- Donate money via http://rollingjubilee.org
$25 abolishes an estimated $500 worth of debt
$50 abolishes an estimated $1000 worth of debt
$100 abolishes an estimated $2000 worth of debt
$250 abolishes an estimated $5000 worth of debt
- Host a live-stream party! Get together with folks in your town and watch the show online and donate money and maybe even drink a beer if you’re feeling crazy.
- If you are Jerry Seinfeld or Bill Cosby: Call me about doing a set at the live show! We’ll fit you in.
Okay, that was a really long tumblr post. I feel very vulnerable right now. Thanks for reading.
We Got This (Occupy Sandy)
Thousands in New York City remain without clean water, food, heat, or power. Relief efforts by locals offer continuing direct aid to the neighborhoods most affected by Hurricane Sandy.
Please visit: interoccupy.net/occupysandy
Alex Mallis | @analectfilms
brooklynfilmmakerscollective.com | @brooklynfilmny
“The Best Democracy Money Can Buy” — New Infographic on Campaign Spending produced by Liberation Newspaper.
All data comes from OpenSecrets.org
Please share with credit to http://www.facebook.com/PSLweb
For information and to volunteer, visit interoccupy.net/occupysandy/
Occupy Sandy is a coordinated relief effort to help distribute resources & volunteers to help neighborhoods and people affected by Hurricane Sandy. We are a coalition of people & organizations who are dedicated to implementing aid and establishing hubs for neighborhood resource distribution. Members of this coalition are from Occupy Wall Street, 350.org, recovers.org and interoccupy.net.
video by Alex Mallis + Grayson Earle
The Occupy Movement has found an unlikely ally in a senior Bank of England official, Andrew Haldane, who has praised protesters for their role in triggering an overhaul of the financial services sector.
Haldane, who oversees the City for the central bank, said Occupy acted as a lever on policymakers despite criticism that its aims were too vague. He said the protest movement was right to focus on inequality as the chief reason for the 2008 crash, following studies that showed the accumulation of huge wealth funded by debt was directly responsible for the domino-like collapse of the banking sector in 2008.
Speaking at a debate held by the Occupy Movement in central London, Haldane said regulations limiting credit use would undermine attempts by individuals to accumulate huge property and financial wealth at the expense of other members of society. Allowing banks to lend on a massive scale also drained funding from other industries, adding to the negative impact that unregulated banks had on the economy, he said.
THINGS YOU DON’T HEAR IN THE U.S NEWS: INDIAN FARMERS DESTROY MONSTANTO’S GM CORN FIELD TRIALS
Shahabad (Kurukshetra), October 18: In a dramatic action, farmers of the BKU forced the Haryana State Agriculture University to fulfil their commitment to destroy Monsanto’s ongoing GM corn field trials in their public research station.
Last month, farmers and activists of the GM Free India coalition had met the state Agriculture Minister Paramvir Singh to show their resentment that public sector universities had become the experimental grounds for Monsanto’s risky technology. They had requested a ban on GM field trials in the state. “A month has passed since we met the Agriculture Minister but the government has failed to act on our behalf. The onus is now on us,” said Gurnam Singh, Haryana state president of the BKU.
Hundreds of farmers carrying banners reading “Monsanto GM corn Quit India” protested outside and gave an ultimatum to the research station of the Choudhary Charan Singh Haryana Agricultural University (CCHAU) when the university officials promised that they would completely destroy the field trial. However, later Monsanto’s officials were caught trying to sneak out the GM corn from the research station with support of University staff. Alert farmers stopped them and surrounded the research station when this news spread. They then forced the University authorities to comply with their promise and burn the complete field trial.
The farmers’ protest follows a recent recommendation by India’s Supreme court to put a 10-year moratorium on all field trials of GM crops in India owing to the risks involved. Public opposition to GMOs has been building in the country owing to growing scientific evidence on the negative impact of GM crops on human health and environment. There are also concerns about the manner in which seed companies are taking control of the seed sector by using their patented GM seeds. This has been the case with the only commercially cultivated GM crop in India - Bt Cotton. Monsanto now controls more than 90% of the cotton cultivated area of India and has wiped out local cotton varieties leaving framers with no alternative choice.