Big Head Press

L. Neil Smith's
Number 641, October 23, 2011

"Mercantilism and capitalism, that's what the
fight is really all about—and always has been"

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Debt Peonage Returns
by Jim Davidson

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Special to L. Neil Smith's The Libertarian Enterprise

In 2005, Congress changed the bankruptcy code to guarantee the profits of the big banks. Student loans may no longer be discharged in bankruptcy court. So, lenders are guaranteed 7% returns and the borrowers get the shaft.

This week, Barack Obama, perfidious mass murderer, executioner of American citizens without trial, friend and bosom companion to bankers and other mass murderers, announced a new programme to have the cell phones of student loan borrowers given up to the lenders. [link]

Obama wants to encourage more people to get nameless phones, apparently. New networks of cell phones are destined to spring into existence offering no tie to your socialist insecurity number.

Meanwhile, Hudson Luce, of Lawrence, at Occupy Lawrence, proposed hitting the bankers hard by organising a debt boycott on student loan payments. How big is that protest potentially going to be? Right around a trillion dollars are already lent out on student loans. [link]

So, how would a debt boycott work? You move, you leave no forwarding address. You stop paying on your student loan. If your credit is already crap, so what?

And why stop there, as Punk Johnny Cash writes today? Why not a boycott on mortgages and on all other debt?

Look, debt peonage has returned. If you cannot discharge your debt when you fall on financial hard times, then the constitution's provision for bankruptcy is a dead letter, like much of the rest of the document. Debtors prisons cannot be far behind.

The Atlantic looked at this issue, recently: [link]

You might as well start now. The bankers are the enemies of freedom. They extort money from you at high rates of interest, while being paid 25 times more by the Federal Reserve than the law allows. They pay about 0.01% for short term money and they receive about 7% on average from student loans.

It is time to bring down the banking cartel. If every banker who took a federal bailout had their home entered at gunpoint and their property distributed to the poor, that would not be aggression. You could make the argument that it is defensive or retaliatory force. When you nationalise your losses and you privatise your profits, you've become a criminal.

Break your chains.

Jim Davidson is an author, entrepreneur, and anti-war activist. His 1990 venture to offer a sweepstakes trip into space was destroyed by government action as was his free port and prospective space port in Somalia in 2001. His 2002-2007 venture in free market money and private stock exchange was destroyed by government action in 2007. He's going to Mars if he has to walk. His second book, Being Sovereign is now availble from Lulu and Amazon. His book, Being Sovereign, was just released as an ePub from
His business plan for Individual Sovereign University, with co-authors Shaun Lee and Harry Felker, is available here.
Contact him at or Come visit IndSovU teams at gatherings in December 2011 in Florida, and March 2012 in Austin, Texas. Or join State Busters.

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