And the circle is presumably: refuse to pay & the bankers will find a NY court to declare you in default and demand penalty payments. If this happens, you get cut off from IMF funding and international capital markets (although presumably they already struggle to borrow private capital?). So then you're pariah nation unable to trade with US or receive any form of aid? And if this represents a geopolitical risk to the West (e.g. you have a huge, young demographic or a nuclear programme), then the US will pay whatever ramshackle group is available to overthrow you. And once they're in power, sell them arms in $$ which becomes the unofficial currency of the country. The new elite spend their dollars in Western capitals and pay their people in shitcoin. The people get poorer & more abused by new authoritarian govt. BUT ... surely a multipolar world would allow some of these states to play a new game of: cancel my debt or we're throwing in our lot with China / Russia. Which appears to be what is happening? E.g. Lula playing divide & conquer: "deal with us on our terms or watch us join forces with your enemies". So a lot of flux at the moment? But yeah, utterly despicable & depressing to watch finance capitalism eat trade and productive capitalism - all in 70 short years.
"The nationalisation of private debts, the massive accumulation of interest and compound interest on outstanding debts, and the bailing out of creditors by the IMF, makes lending to sovereign governments the most profitable business of all, George Soros once said," writes Ann Pettifor. 📢
Wow. Thanks for the info. Keep digging, keep up the faith. The world is ever changing, if only people would be kinder and think of others more often. Thanks.
That's the best article title I have seen in a long time.
And the circle is presumably: refuse to pay & the bankers will find a NY court to declare you in default and demand penalty payments. If this happens, you get cut off from IMF funding and international capital markets (although presumably they already struggle to borrow private capital?). So then you're pariah nation unable to trade with US or receive any form of aid? And if this represents a geopolitical risk to the West (e.g. you have a huge, young demographic or a nuclear programme), then the US will pay whatever ramshackle group is available to overthrow you. And once they're in power, sell them arms in $$ which becomes the unofficial currency of the country. The new elite spend their dollars in Western capitals and pay their people in shitcoin. The people get poorer & more abused by new authoritarian govt. BUT ... surely a multipolar world would allow some of these states to play a new game of: cancel my debt or we're throwing in our lot with China / Russia. Which appears to be what is happening? E.g. Lula playing divide & conquer: "deal with us on our terms or watch us join forces with your enemies". So a lot of flux at the moment? But yeah, utterly despicable & depressing to watch finance capitalism eat trade and productive capitalism - all in 70 short years.
"The nationalisation of private debts, the massive accumulation of interest and compound interest on outstanding debts, and the bailing out of creditors by the IMF, makes lending to sovereign governments the most profitable business of all, George Soros once said," writes Ann Pettifor. 📢
Ugh, Ann, this is so depressing. Capitalism is going to kill us all.
Wow. Thanks for the info. Keep digging, keep up the faith. The world is ever changing, if only people would be kinder and think of others more often. Thanks.
I take these loans are not made in the country's sovereign currency?