Central bank manipulations are also a form of reset, intended to restore faith in the currency or the banks e.g.
In the 20th century, major currency resets occurred in 1913, when the Federal Reserve was instituted following a major banking crisis in 1933 following another catastrophic banking crisis, when the dollar was taken off the gold standard domestically and deposits were federally insured in 1944, at the Bretton Woods Conference concluding World War II, when the US dollar backed by gold was made the reserve currency for global trade and in 1974, when the US finalized a deal with the OPEC countries to sell their oil only in US dollars, effectively “backing” the dollar with oil after Richard Nixon took the dollar off the gold standard internationally in 1971. Acceptance of a currency is based on trust, and a “currency reset” changes the backing of the currency to restore that trust when it has failed. Today the remedy for an unsustainable debt buildup is called a “reset.” Far short of a Jubilee, such resets are necessary every few decades. Debt grows until it cannot be repaid, when the board is cleared by some form of market crash such as the 2008 financial crisis, typically widening the wealth gap on the way down. Debt thus grows faster than the money supply, as seen in the chart from below. They create the principal but not the interest, so more money must be repaid than was created in the original loan. Governments have delegated the power to create money to private banks, which create most of the circulating money supply as debt at interest. But we do have a serious debt problem, and it is largely structural. Banks, landlords and pension fund investors would go bankrupt if their contractual rights to repayment were simply wiped out. That sort of across-the-board debt forgiveness can’t be done today because most of the creditors are private lenders. The same policy was advocated in the Book of Leviticus, though it is unclear to what extent this biblical Jubilee was implemented. This could be done because the king was the representative of the gods who were said to own the land, and thus was the creditor to whom the debts were owed. Debts were forgiven, the debtors’ prisons were opened, and the serfs returned to work their plots of land. When debts at interest grew too high to be repaid, the slate was wiped clean.
"In ancient Mesopotamia, it was called a Jubilee.
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