That would be disasterous in a way I can't even describe!

But let me fill you in for the people that say the debt is a "Fraud" and an "Illusion".

The United States is the example I will use, since I am most familiar with it's banking regs and Federal Reserve Policies.

The United States has approximately 25 Trillion in Treasury Bonds of various maturities outstanding on the world markets. If you said all debt goes to zero (which is a fairytale) that would wipe out 25 Trillion in wealth around the world, overnight! Countries heavily invested in Treasuries such as China, Saudi Arabia, and Japan would be wiped out and put into essential sovereign default overnight. This would begin a chain reacation that would cause an economic shutdown around the globe. Millions to Billions would starve within months.

Inside the United States our Federal and State banks put their reserves in Treasury Bonds which they buy from the Federal Reserve, they can pledge these bonds back to the Fed for liquidity and capital needs. If you wiped out this debt, you would see almost every bank in the United States go bankrupt overnight. All wealth in this country would be nullified. Banks would lack essential liquidity to fund customer accounts, the FDIC would be out of business within minuts. Customer's accounts, including all business accounts in the country would vaporize into thin air with no recourse.

The value of the dollar would go into free fall. Hyperinflation would be unprecedented and everyone in America would join in the poverty. Commodities would be at a premium, but they would be so expensive they would be out of reach for almost every citizen of the country. Riots and social unrest would explode within hours, starvation would become a reality in the richest country in the world within months.

In essence, Chaos...