Sub: Urgently needed: Direct lending at lower rate and debt relief
The current financial crisis may have reached an epochal point: unsustainably high (usurious) lending rate of interest and usurious creation of credit over many years. The optimal solution to the epochal crisis is two-pronged:
- Cut the price of credit by lending at lower rate directly to grass-root borrowers.
- Offer debt relief to the grass-root borrowers.
Grass-root borrowers are the businesses and homes which are centers of real activities. Cutting the Federal Reserve benchmark rate has not lowered the lending rate. Direct lending is the only tool available to the government to cut the lending rate. Direct debt relief by fiat for all indebted households is perhaps the fairest, quickest and cheapest approach to have an immediate positive impact on reviving the economy.