Cancelling Government Debt held by Central Banks

A theme seems to be emerging discussing this possiblity.

The first discussion I saw was at the Bond Vigilante Blog

http://www.bondvigilantes.com/blog/2012/04/11/if-the-government-simply-cancelled-the-300-bn-of-qe-gilts-held-by-the-boe-who-would-be-unhappy/

More radical easing measures are being floated

http://juniorgoldminerseeker.blogspot.co.uk/2012/10/uk-financial-times-uk-needs-to-talk.html

An excellent review of recent FT "trial balloons" regarding cancellation of government debt here at Pater Tenenbarum's Acting Man Blog

http://www.acting-man.com/?p=20022