Odious Debt. A "Jubilee" to come?

[OROBTC]

...

One thought that comes to me regularly is the thought of a "Jubilee", now thought of as a renunciation of debts.  The idea is seen even in the Old Testament of the Bible.  Every 50 or so years, Old Israel would declare all debts null and void.  I believe (once again, I am not an expert on many things...) that another idea was to keep the wealth from becoming too concentrated in the hands of a few.

I ran into this quotation today:

"We the people of these United States, do hereby claim that all federal debts incurred since the inception of the entity  know as Federal Reserve are here forth consider Odious Debt and are thereby invalid unto the Citizens of the United States."

From: "tyberious": http://www.tfmetalsreport.com/podcast/7409/a2a-rob-kirby?page=2#comments

The term "Odious Debt" is discussed somewhat here: https://en.wikipedia.org/wiki/Odious_debt

This meme of a Jubilee also comes up from time-to-time at Zero Hedge and other places in the Alt-Finance Media.  

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There is no doubt that the current National Debt (variously defined, but at its MOST conservative would be some $19 trillion (or over $100,000 per taxpayer) is not payable in its current form.  If we consider other debts (inc. Social Security, MediCare, state & municipality debts, consumer debts, etc.), then there is no question that the various debts in their current forms and understanding will NEVER be repaid.  But, let's limit ourselves to studying our National Debt.  

HOW will (can) it be repaid?  

What forms will the Debt NOT be repaid (devaluing it by inflation, a Jubilee (default = NOT PAYING), moar debt, a combination...)?

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[oblomov]

The problem is that all existing loans were made without the expectat
ion of a jubilee.  If jubilees occurred every seven years as in the Old Testament, then loans would be made on drastically different terms.  No thirty year mortgages, and no revolving debt such as credit cards.

[tabnloz]

Interesting topic. I read Prof Steve Keen mentioning this, where the people get helicopter money and those with debts are forced to pay down those debts, but savers etc keep the money (and more likely buy something that retains value asap). A straight out cancellation of debt probably wouldnt work, no? Too many creditors and derivatives etc would send contagion through the system?