Debt Crisis in The Third World
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).
Pareto’s Economics
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.
But …
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.
Related articles
- German foreign minister hits out at US over debt crisis (telegraph.co.uk)
- G-20 finance chiefs meet on debt crisis, economy (seattletimes.nwsource.com)
- Osborne presses Eurozone leaders (independent.co.uk)
- The U.S. Debt Limit (quicktake.wordpress.com)
- Germany: Banks to take bigger losses on Greek debt (sfgate.com)
- We need a global army of tax collectors (theglobeandmail.com)
- Central Banks Selling Most U.S. Bonds Since 2007 No Rally Killer (businessweek.com)
- West – Developed & Deep in Debt (quicktake.wordpress.com)
- An Imperfect Union: Europe’s debt crisis (cbsnews.com)
- IMF funds drive caught in global power shift (firstpost.com)
- Is the European debt crisis still a threat to U.S. stocks? (usatoday.com)
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3rd currency? another statist currency will go down the same path.there is only one solution -gold -which worked for millenia.a currency not beholden to human whims.
the overlords of the third world are no different from those running the dollar.it is power which motivates them all and gold alone can emasculate concentration of power
yes,you explained the BRIX.it remains an artificially created system run by babus of the ‘banking cadre’. albeit based on gold.money needs to remain spontaneous and free.any attempt to rein it with bureaucrat/political muscle will remain no different the gold-exchange standard.
some of the penalties suggested include trade restrictions -that implies punishing people for the mistakes of their governments. money needs to be denationalized.shivaji was the chattrapati,but he didnt monopolize coinage and money.thats the enlightened polity we need.