Debt Crisis in The Third World
The West is nearly US$100 trillion in debt and 14% of global population. Emerging Markets and Third World has 80% of global population and gets less than US$10 trillion of funding.
Cartoon by Bendib. Click for larger image.
The Debt Crisis: An Overview
Modern day international usury is, of course, much more complex than the more primitive relation we have just presented. Total Third World debt amounts to USD2 trillion; annual payments is about USD 200million. The system of debts has evolved into a key aspect of the capitalist economy; a weapon for consolidating the domination of the people’s of the Third World. In many ways, the debt today is a weapon more potent than others devised by colonialism and neo-colonialism.
It is institutionalized to a very high degree, is regulated by a massive bureaucracy of the multilateral finance institutions; and backed up by the military might of the mightiest nations on earth. Worse the burden of paying debts is passed on to society in general as a routinary process. (via South South Summit 1999 Document: The Development and Historical Context of the Debt Crisis).
The previous post examined the debt situation of the West.
Since the global financial system is a Western captive, humungous debts are arranged, serviced, cancelled, written-off, repaid – without significant discomfort. Gross debt of the West is US$ 100 trillion (State; Corporate and Household); while the States of West are debtor to the extent of US$ 30 trillion; which is nearly 40% of global GDP.
Finally, the debt problem will be managed. Many ways to skin a cat.
US$2 trillion debt that is owed by the developing world will be used to extract maximum benefit – at lowest prices. Raw materials will be bought at below-low prices. Imports will be priced at exorbitantly.
The answer is …
Two-fold. At an individual level, invest and stay invested in gold. At a national level, the developing world must create a multilateral framework for a third currency.