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Odious debt is unfair debt resulting from illegitimate loans. A useful summary from Jubilee USA: Odious debt is an established legal principle.
Legally, odious debt is debt that resulted from loans to an illegitimate or dictatorial government that used the money to oppress the people or for personal purposes. They cannot legitimately expect repayment of such debts.
Great Britain was also denied similar claims against Costa Rica in Many poor countries today have started their independent status with heavy debt burdens imposed by the former colonial occupiers. South Africa as another example, has found it now has to pay for its own past repression: But it is not just South Africa paying for this; surrounding countries that have been destabilized from this are paying debts incurred to deal with it.
The organization Action for Southern Africa summarizes this clearly, albeit in a report Debt for rich country Apartheid wrought vast destruction across the region; now the people of Southern Africa want to rebuild. In a remarkable spirit of reconciliation, the people of Southern Africa want to forgive the horrors of the past and look forward.
But the banks, international financial institutions, and individual countries which lent to both sides in the apartheid war are demanding repayment. After the Second World War, the United States allowed Britain to repay debt at a very low rate so that it could rebuild.
Inthe victorious allies met in London to cancel most of Germany's debt, so that it could rebuild. Now the nations of Southern Africa want to rebuild a post-apartheid society, but the creditors of today, are not willing to offer them the space Britain received from the US and the Allies gave to Germany.
Various other nations have found that they have to pay debts incurred by their previous military dictators many of which were installed as clients of the rich countries.
As Steve Mandel, of the New Economics Foundation argues, because so much of these loans were knowingly given to unaccountable and corrupt leaders, there should be a shift in discussion from odious debt to odious lending, and thus there should be more of a spotlight on the banks who made large loans to illegal regimes, in effect, sustaining them.
Mandel also notes the scale to which odious debt has been overpaid, and is quoted at length here: Long after odious debts are technically off the books, subsequent generations are still effectively paying for them. This [New Economics Foundation] research paper examines 13 clear cases that present a picture of the extent and impact of odious lending.
This means that people in these—often desperately poor—countries end up paying three times for loans ostensibly taken out in their name:There wouldn't be much of a need for continuous counting, since we could rest assured that the national debt we are immorally laying on the backs of future generations will once again more than double over the next 8 years to 40 trillion dollars, if the same elite group of Masters continue to rule over and oppress their hapless victims that live on American plantations.
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This is another post from the Suggest a Topic page, and while the original comment had a lot of questions about the overall functioning of an economy, I thought I’d take one question from it, and try and answer that in a post..
Why can’t a country print money and become rich? A lot of people have this misconception that a country’s currency is backed by the gold it holds. Third world debt has long been recognized as a major obstacle to human development.
Many other problems have arisen because of the enormous debt that third world countries owe to rich countries. This is another post from the Suggest a Topic page, and while the original comment had a lot of questions about the overall functioning of an economy, I thought I’d take one question from it, and try and answer that in a post..
Why can’t a country print money and become rich? A lot of people have this misconception that a country’s currency is backed by the gold it holds. Government debt, especially that held in bonds denominated in foreign currencies.. Under the doctrine of sovereign immunity, the repayment of sovereign debt cannot be forced by the creditors and it is thus subject to compulsory rescheduling, interest rate reduction, or even rutadeltambor.com only protection available to the creditors is threat of the loss of credibility and lowering of the.