Debt Crisis

CYPRUS : AS THE FINANCIAL CRISIS DEEPENS, WILL THE LESSONS BE LEARNT?

by Martin Khor

12 April 2013

The Cyprus crisis has again shown that over-dependence on the financial sector and an unregulated and liberalised financial system can cause havoc to an economy. More

GLOBAL FINANCIAL FLOWS, AID AND DEVELOPMENT

by Eurodad

30 March 2013

This paper - written by Eurodad for CONCORD’s Aidwatch coalition - sets out all the financial resources potentially available for development. It examines their key characteristics and discusses their poverty and sustainable development impacts, as well as the implications for aid. More

CYPRUS - WHOSE CRISIS?

by Petros Kosmas

29 March 2013

Cyprus’s banking sector did not grow so recklessly and to an unsustainable size in order to best serve Cypriots’s social and economic needs. More

KEY ISSUES IN THE ORGANIZATION OF AND GOVERNMENT INTERVENTION IN FINANCE IN DEVELOPING COUNTRIES: LESSONS FROM RECENT EXPERIENCE

by Ylmaz Akyuz

2 February 2013

A fundamental question raised by recurrent fi-nancial crises in mature and emerging econo-mies is how to ensure that the financial markets and institutions serve growth and development rather than being a constant source of instability and disrup-tion in pursuit of self-interest. This is not only a ques-tion of how best to regulate the existing institutions and markets, but also how to restructure and organ-ize them. More

GREECE ALREADY DEFAULTED ON THE CREDITORS’ TERMS; WHAT THEY FEAR IS DEFAULT ON THE DEBTOR’S TERMS

by Christina Laskaridis

19 May 2012

What is being witnessed in Greece is a full blown example of being trapped in the debtor’s prison of current sovereign debt resolution mechanisms, where creditors are both judge and jury More

SEISMIC ELECTION RESULTS IN GREECE

by Eric Toussaint

9 May 2012

,Syriza, the radical left-wing coalition comes first in all major cities and among people aged18-35,,Its campaign advocated suspending debt payment and cancelling austerity measures More

SPAIN : MEANINGS AND PROSPECTS OF NEW BUDGET CUTS

by News Agencies

2 April 2012

Just hours after a general strike, which magnitude and extension were denied, Spain’s government has announced $36 billion in new budget cuts, as it attempts to reassure the European Union that it will not need a financial bailout. More

GREECE: THE NEO-COLONIAL LOAN AGREEMENT EXPLAINED

by Leonidas Vatikiotis

2 April 2012

This is a suicidal term, preventing the government from using the legal tools that even the creditor friendly Papademos government activated in order to turn an insufficient voluntary participation to the bond swap into a coercive one. More

MORE PAIN, NO GAIN FOR GREECE

by Mark Weisbrot, Luis Alberto Montecino

12 March 2012

New Paper Argues Greece Should Consider Default and Exit From Euro. It looks at Greece’s experience with “internal devaluation” and finds there’s a high risk of continued prolonged recession More

WE CONDEMN THE DISINFORMATION CAMPAIGN ON THE GREEK DEBT AND THE RESCUE PLAN BY PRIVATE CREDITORS

by Damien Millet, Yorgos and Sonia Mitralias, Eric Toussaint, Renaud Vivien (CADTM)

12 March 2012

For the CADTM, this new plan is a hoax: while claiming to rescue Greece it actually saves the day for private creditors though they are largely responsible for the Greek debt. More

THE LESSON FROM ICELAND’S ECONOMIC RECOVERY: LET BANKS GO BUST

by Matthew Partridge

5 March 2012

Governments around the world bailed out their financial sectors. However, Iceland took a different tack. The government declared that it would only save domestic bank account holders - everyone else would have to fight over the remaining assets More

GREECE: FOSTERING A STRATEGY TO TACKLE THE CRISIS

by Jorge Marchini

18 February 2012

The publication of the book “ Breaking up? A Route out of the Eurozone Crisis” is of great importance at this so critical moment for Europe. It is immediately apparent the commitment of the authors for not being neutral and distant specialists who write only for connoisseurs. Their work and contributions of exceptional quality respond to the challenges facing today a troubled society that requires with its outcry and mobilization immediate responses and proposals. More

OUR STREETS VS. WALL STREET

by Steve Fraser

15 October 2011

Occupy Wall Street, the ongoing demonstration-cum-sleep-in that began a month ago not far from the New York Stock Exchange and has since spread like wildfire to cities around the country, may be a game-changer. If so, it couldn’t be more appropriate or more in the American grain that, when the game changed, Wall Street was directly in the sights of the protesters. More

LIVING IN DEBTOCRACY. DEBT IN THE NORTH: LEARNING FROM THE SOUTH - 7TH AND 8TH OCTOBER IN MADRID

by Network for the Abolition of External Debt and the Recognition of the Ecological Debt - Who owes whom?

24 September 2011

The meeting "Living in debtocracy: Debt in the North: learning from the South" will seek to provide keys to understand and tackle debt and the current economic crisis we are suffering. IES Lope de Vega - Calle San Bernardoo 70 (esquina calle Daoíz 4) More

IRELAND: THE SOCIALIST SOLUTION TO THE CRISIS

by Ireland: Socialist Workers Party - SWP-

14 November 2010

These cuts will only throw the country back into an even deeper recession - putting ever greater numbers of people onto the dole. All of which begs the question: What is the alternative? More

CADTM INVITES YOU TO CELEBRATE ITS 20TH BIRTHDAY!

by CADTM

9 November 2010

20 years on, CADTM is active on every continent alongside men and women who are fighting to free the world’s peoples from imperialism, neo-colonialism, capitalism and patriarchy, with abolition of the debt as the spearhead of its action. More

ROMANIA: THE NEXT GREECE?

by News Agencies

27 June 2010

Romania’s economic evolution remains uncertain and the application of austerity measures announced by the government is a condition for future installments of the loans from EU and IMF, More

FINANCIAL CRISIS OR CRISIS OF CAPITALISM?

by Michel Husson

23 June 2010

The current crisis originated in the financial arena but quickly spread to all of the so-called real economy. This observation raises two questions. A theoretical question: how to analyze the relationship between finance and the real economy and their responsibility for the crisis? And a more practical question: what are the channels of transmission from one to another and how to reverse financialization? More

GREECE AS A DEMONSTRATION PROJECT

by Mike-Frank Epitropoulos

23 May 2010

If the Greeks do not quietly accept the austerity measures, as the American public seems to be doing once again, there may have to be a more forceful demonstration effect in the form of violent confrontation between the people and the state. More

HAITI: GRANTS TO REPAY AN ODIOUS DEBT ?

by Eric Toussaint - Sophie Perchellet

18 January 2010

There is a great risk that one of the largest relief operations in history will be similar in nature to the tsunami relief efforts in 2004, unless a radically different approach to a reconstruction model is adopted. More

ICELAND BLOCKS BANK REPAYMENTS FOR FOREIGNERS

by News Agencies

6 January 2010

The president of Iceland blocked a hard-fought $5 billion compensation deal with the British and Dutch governments on Tuesday, upending the precarious finances and politics of the island nation and further jeopardizing already frayed ties with Europe and international lenders. More

UNITED STATES : STATE BUDGET BLUES - LOOKING FOR FUNDS IN ALL THE WRONG PLACES

by Marianne Hill

29 December 2009

Experts anticipate that federal dollars going to state programs will be scaled back, with funding levels increasing only in targeted areas such as health care and energy. So shortfalls in state budgets will continue for years to come unless states either enact more cuts or update their antiquated tax systems. More

THE LESSONS OF DUBAI

by Nouriel Roubini

2 December 2009

Although Dubai World’s financing issues are not a surprise and are relatively small given global credit losses, they are a reminder that the vulnerabilities and imbalances that contributed to the credit crunch have not disappeared. More

NEW REPORT FINDS IMF AGREEMENTS HAVE INCLUDED POLICIES THAT COULD WORSEN ECONOMIC SLOWDOWN IN 31 OF 41 COUNTRIES

by Mark Weisbrot, Rebecca Ray, Jake Johnston, Jose Antonio Cordero and Juan Antonio Montecino.

7 October 2009

A new discussion paper from the Center for Economic and Policy Research finds that 31 of 41 countries with current International Monetary Fund (IMF) agreements have been subjected to pro-cyclical macroeconomic policies that, during the current global recession, would be expected to have exacerbated economic slowdowns. More

G-20 MEETING IN PITTSBURGH : CASINO CAPITALISM AS USUAL

by Mark Engler

3 October 2009

he Group of 20 (G20) meeting in Pittsburgh (Sept. 24-25 2009) brought together leaders from the most significant players in the global economy. Unfortunately, the changes left off the table at the summit were far more significant than the modest reforms actually debated, and the few alterations that did make it into the final agreement are likely to be further watered down in implementation. More

UNITED STATES: ONE YEAR OF BANKSTER BAILOUTS AND MELTDOWN MADNESS

by John Nichols

14 September 2009

One year ago today, the economic time bomb that George Bush and Dick Cheney had spent two terms constructing - on a platform of deregulations furnished by Bill Clinton and Newt Gingrich - blew up. The explosion created the deepest economic downturn since the Great Depression. And it sent unemployment rates soaring to the highest levels in a quarter century. More

ARGENTINA: RETURNING TO THE IMF IS NOT FOR FREE

by Mariela Bembi and Pablo Nemiña

9 September 2009

In the past weeks, several voices, including from the same government of Cristina Kirchner, were heard in favour of Argentina’s return to the IMF, allowing the institution to carry out the review of the economy known as Article IV. More

WHICH IMF DO YOU WANT?

by Roberto Bissio

2 September 2009

Technical or political, friendly or heated, these debates have explored all the aspects of the tumultuous relationship between the IMF and Latin America, except for one: What Fund do we want? How should we reform the Fund, if we could? More

USA: BERNARD MADOFF AND THE SEC’S REVOLVING DOOR

by Pam Martens

31 August 2009

The long-awaited investigative report by the Securities and Exchange Commission’s (SEC) Inspector General on how the SEC bungled multiple investigations of Bernard Madoff is set for release this week. More

BEYOND THE WORLD CREDITORS’ CARTEL

by Dariush Sokolov

20 August 2009

In Latin America and elsewhere, the IMF may be re-emerging-but in a changed landscape. More

RUSSIA’S ECONOMY : NORMAL REMEDIES WON’T WORK

by Dmitri Travin

14 August 2009

The economic crisis in Russia has proved much more serious than was expected in the autumn of 2008, when the first signs of a serious downturn became apparent. Experts are currently talking more and more about the imminent so-called second phase of the crisis, when bad debts on a massive scale will lead to the collapse of the banking system. More

NOT HOME YET

by James Surowiecki

3 August 2009

Even as the economy seems to be stabilizing, mortgage delinquencies continue to rise, with nearly two million foreclosure filings already this year More

SOME USD 5 TRILLION ON FINANCIAL SUPPORT SINCE THE CRISIS BEGAN, BUT ALMOST NOTHING HAS REACHED THE MOST VULNERABLE COUNTRIES

by Ambrose Evans-Pritchard

22 July 2009

Supachai Panitchpakdi, head of the UN Conference on Trade and Development (UNCTAD), said that Capital flows to poorer states and export earnings have together collapsed by USD $2 trillion since the credit crunch began. "This is an alarming trend, and it’s not a result of their own doing." More

STAGES IN THE NEW DEBT DEFLATION FISHER-MINSKY CRISIS

by Arturo Guillén R.

19 June 2009

The global crisis is the most important capitalist crisis since World War II. It is a new type of debt-deflation crisis, highlighting the limits of the finance-dominated regime of accumulation in place since the 1980s and characterized, among other things, by securitization, that is, a financing regime based on issuing securities and derivatives. More

BALTIC ECONOMIC INSTABILITY THREATENS TO SPREAD TO SWEDEN

by Jordan Shilton

17 June 2009

The uncertainty over Latvia’s economic future has provoked concerns in ruling circles throughout Europe. Concerns are particularly acute in Sweden. Estimates suggest that Swedish-based banks have outstanding credits totalling 500 billion kronor (nearly €50 billion) to the Baltic countries. More

NAFTA’S SERFS: FROM WAGE SLAVERY TO DEBT SLAVERY

by Kent Paterson

17 June 2009

The growing indebtedness of Mexican credit card users has actually created a new opportunity for the shadowy, high-interest lender. To pay off high-interest credit cards, some debtors look again to the agiotistas. Meanwhile, delinquency rates on U.S. credit card accounts topped 5% at the end of the last year, with default rates continuing to climb upward during the first few months of 2009. More

SOUTH AMERICAN TRADE AND CURRENCY VOLATILITY

by Tony Phillips

9 June 2009

Latin America is rich in real terms, however its financial infrastructure is primitive. This means that many national and international transactions pass unnecessarily via northern financial centers, sometimes requiring two hard currency conversions from buyer currency to dollar to seller currency. More

LATVIA’S CRISIS DEEPENS

by Kathleen Moore

7 June 2009

Not so long ago it was the fastest growing economy in the European Union. But boom turned to spectacular bust last year as the global financial crisis swept across Eastern Europe, popping Latvia’s real-estate bubble. More

UNITED STATES: FORECLOSURE REMAINS A GROWING NATIONWIDE PROBLEM

by Bill Laforme

31 May 2009

The nationwide foreclosure problem is getting worse than ever, according to the latest figures from the Mortgage Bankers Association. 12.07 percent of U.S. home loans are now either in the foreclosure process or at least one payment past due, which is said to be the highest level ever recorded. More

UN SUMMIT ON FINANCIAL CRISIS DELAYED UNTIL LATE JUNE

by News Agencies

27 May 2009

The UN Conference on the World Financial and Economic Crisis and Its Impact on Development was originally slated to be held on June 1-3, with an aim to find a common and lasting solution to address the ongoing financial and economic crisis of the world. More

HAS THE RECESSION BOTTOMED OUT?

by Steve Schifferes

22 May 2009

By some measures, the global recession seems to be accelerating, with unemployment rising and overall economic activity falling. But there are some signs that the rate of decline is slowing. How significant is the evidence for a turning point? More

EUROPEAN SOCIAL ORGANIZATIONS CALL FOR NEXT JUNE 1-3 UNITED NATIONS SUMMIT (G- 192)

by European Cross-Sectoral Network on the Combined Crises

14 May 2009

A call to UN Conference on the World Financial and Economic Crisis and its Impact on Development (1- 3 June 2009), and especially the European leaders attending the event to focus on reforms that directly benefit people and the planet. More

TOWARDS A WESTERN/EASTERN EUROPE BANKING AND SOCIAL TSUNAMI

by Catherine Samary

12 May 2009

The International Monetary Fund (IMF) was called to the rescue by Hungary, Latvia, Poland, Romania, Serbia and Ukraine... which are confronted with a fall in growth and in foreign exchange rates, with capital flight and a banking crisis. The policies of budgetary austerity, under the pressure of the IMF and of the European Union, are producing governmental crises. More

AUSTRALIA: WHEN CASHED-UP IMF OFFERS TO HELP, STEER WELL CLEAR

by Ross Buckley

5 May 2009

Make no mistake, the worst of the global crisis is still before us.This collapse in trade and capital flows will seriously damage the fragile economies of poorer countries. More

PAKISTAN IS NOT OUT OF THE WOODS

by Abdul Khaliq (CADTM Pakistan)

4 May 2009

In view of country’s never-ending economic woes and more importantly the roaring threat of Taliban’s possible access to nuclear assets of Pakistan, the Friends of Pakistan-Group of 31 countries and international agencies gathered in Tokyo on 17 April 09 to pledge $5.28 billion for uplift of social sector in Pakistan. More

IMF EMERGENCY LOANS: GREATER FLEXIBILITY TO OVERCOME THE CRISIS?

by Eurodad

22 April 2009

Despite promising IMF rhetoric about greater flexibility in fiscal and monetary policies because of the current crisis, IMF loans in Romania, Latvia and Armenia show that practice is not in line. The Fund is still pushing tight fiscal policy and single-digit inflation. More

ECUADOR OFFERS TO BUY BACK PUBLIC BONDS AT 70% DISCOUNT

by News Agencies

21 April 2009

Ecuador offered to repay holders of defaulted bonds as little as 30 cents on the dollar. Yhe proposal was launched as a resolution for the 2012 and 2030 Global Bonds More

IMF APPROVES U$S 47 BILLION NEW CREDIT TO MEXICO, BUT THE FOCUS IS PLACED IN EASTERN EUROPE.

by News Agencies

20 April 2009

Mexico is the first nation to be granted the IMF credit under its newly created ’flexible credit line’ (FCL) available to strongly performing economies with fewer strings attached, to tide over the worst economic crisis in over 60 years. More

G20: HOW NOT TO RULE THE WORLD

by Jayati Ghosh

13 April 2009

Not much could have been expected from this G20 Summit. Despite the urgency of a global economy going rapidly over the cliff, there is still too much disagreement about most issues among the members. Even so, the resulting communiqué released with so much fanfare is deeply disappointing. More

ROMANIA: PUSHED BY CRISIS INTO DUBIOUS BORROWING

by Claudia Ciobanu

9 April 2009

It remains unclear whether the IMF deal will bring to Romania the cushioning it needs against the global financial crisis, especially if the government does not pursue a coherent anti-crisis strategy. The political leaders themselves seem uncertain of the consequences of the IMF deal. More

CHINA WILL LEND ECUADOR USD 1 BILLION FOR ENERGY INVESTMENTS

by Stephan Kueffner

6 April 2009

China will lend Ecuador $1 billion for investments in the oil, refining and electricity industries, Economy Minister Diego Borja said. More

ITALY: MASS PROTEST IN ROME OVER FINANCIAL CRISIS

by News Agencies

6 April 2009

Several hundred thousand workers, pensioners, immigrants and students filled a Rome park on Saturday in protest at the Italian government’s handling of the financial crisis. More

THE US DOLLAR QUESTIONED: CHINA AND RUSSIA PROPOSE STUDIES TO CREATE A NEW INTERNATIONAL RESERVE CURRENCY

by Oleg Shchedrov and Daisy Ku

4 April 2009

Russia proposed on Thursday an IMF or G20 study on creating a new international reserve currency and China reiterated support for a broader discussion of the dollar’s role that was missing at the London G20 summit. More

CZECH REPUBLIC AND HUNGARY: FINANCIAL CRISIS TAKES POLITICAL TOLL

by Zoltán Dujisin

30 March 2009

The weak governments in Hungary and the Czech Republic have fallen, raising questions on the future of liberal economic reform and the influence of the U.S., the European Union and Russia in the region. More

KEYNES, CAPITALISM, AND THE CRISIS- INTERVIEW TO JOHN BELLAMY FOSTER

by Brian Ashley,

29 March 2009

Keynes’s critique of capitalism never ceased to be relevant, as is now readily apparent. But economic orthodoxy was unable to move beyond Keynes to address the larger issues he raised (nor did Keynes himself in the end do so) More

"TOXIC ASSETS" OF US BANKS: WHY THE GEITHNER PLAN WILL FAIL

by Patrick Madden

27 March 2009

The Geithner plan assumes that the toxic assets that the banks hold can be detoxified to re-start lending; it assumes that there is no problem with the fundamentals of the global economy More

LONDON: PUT PEOPLE FIRST MARCH AHEAD OF G20’S SUMMIT

by Social Movements

26 March 2009

On 28th March thousands will march through London as part of a global campaign to challenge the G20, ahead of their 2nd April summit on the global financial crisis More

THE ECONOMIC CRISIS FRUSTRATES LATIN AMERICA’S EFFORTS TO ESTABLISH THE BANK OF THE SOUTH

by César Muñoz Acebes

18 March 2009

Argentina, Brasil, Bolivia, Ecuador, Paraguay, Uruguay and Venezuela signed, at the end of 2007, the foundational act of the Bank of the South, but still continue working in a draft of the constitutive agreement. More

"THE BAILING OUT OF THE SYSTEM RIGHT NOW IS GOING ON WITH TAXPAYER FUNDS BUT WITHOUT THE SAY OF THE PUBLIC"

by Mike Whitney

9 March 2009

John Bellamy Foster is editor of Monthly Review and professor of sociology at the University of Oregon. He is the coauthor with Fred Magdoff of The Great Financial Crisis: Causes and Consequences, recently published by Monthly Review Press. This is a heavily abridged version of an interview was conducted by Mike Whitney that first appeared at Dissident Voice - http://www.dissidentvoice.org More

WHATEVER’S HAPPENED TO GLOBAL BANKING?

by C.P. Chandrasekhar & Jayati Ghosh

7 March 2009

The call for nationalization of banks in developed countries, even if for a temporary period, marks a potential ideological shift. Even staunch free market advocates are declaring that nationalization is inevitable. This article examines the factors explaining this acceptance of public ownership and the implications that this has for the future of banking regulation. More

LATIN AMERICA FACES THE GLOBAL CRISIS

by Claudio Katz

3 March 2009

The capitalists of Mexico, Brazil, and Argentina receive the assistance that should be allocated for the destitute. The social-liberal and neo-developmentalist governments all follow statist programs on behalf of the rich and powerful and do not coordinate their anti-crisis policies. More

THE DEBT IN FIGURES

by Damien Millet- Eric Toussaint

27 February 2009

A necessary tool to understand the current global crisis, the data collected here by Damien Millet and Eric Toussaint (CADTM) should enable us to make sense of one of the basic reasons for the international situation, as seen from the viewpoint of the global South. From the 1960s to today’s global crisis, the international network of the CADTM has constantly kept a critical eye on the world economy and the mechanisms of domination that affect it. Analysing various statistics is essential to (...) More

THE CRISIS OF GLOBAL CAPITALISM AND THE ENVIRONMENT,

by Chronis J Polychroniou

23 February 2009

Interview with John Bellamy Foster, Editor of Monthly Review and Professor of Sociology, University of Oregon, for Eleftherotypia (Greece) More

IRISH GOVERNMENT FACES GROWING FEARS OF DEBT DEFAULT

by Elena Moya

17 February 2009

Fears are growing that Ireland could default on its national debt after the cost to insure against possible losses on loans to the country rose to record highs at the end of last week. More

WILL IMF LOANS HURT THE POOR THIS TIME AROUND?

by Bretton Woods Project

15 February 2009

While the IMF undertakes high-speed reviews into its lending instruments and conditionality, it continues to make crisis loans with heavy conditionality that may adversely impact the poor in developing countries. More

ALTERNATIVE VIEWS OF THE ECONOMIC CRISIS

by BBC- News

10 February 2009

BBC News asked four participants in the World Social Forum in Belem, Brazil, (David Evan Harris, Walden Bello, Myriam Vander Stichele and Marcos Arruda) to state their opinions on the global crisis and alternatives to address it More

"TOO BIG TO FAIL:" A BAILOUT HOAX

by Ismael Hossein-Zadeh

6 February 2009

Using the “too big to fail” scare tactic, the U.S. government has kept a number of terminally ill Wall Street gamblers on an expensive life-support system that is estimated to cost taxpayers $8.5 trillion More

JUBILEE SOUTH- ACTIVITIES IN WORLD SOCIAL FORUM 2009

by Jubilee South

28 January 2009

Jubilee South will be participating in numerous activities during the coming edition of the World Social Forum in Belém, Brazil, and we invite you to join us!! More

YOU, ARGENTINA, 5 YEARS ON...

by Eric Toussaint , Damien Millet

4 January 2007

Argentina, you have been much talked about since the night of 19 to 20 December 2001 when after three years of economic recession your people walked out into the streets to shout their rejection of the neoliberal policies led by Fernando De la Rua and his baleful minister of Economy, Domingo Cavallo. You showed the world that citizens can change the course of history.
Argentina, those events that resulted in the December 2001 uprising started with the IMF decision not to grant an agreed (...) More

WILL US DEBT LEAD TO A FINANCIAL CRISIS?

by John Dillon

22 February 2006

KAIROS Debt E-Bulletin Feb. 21, 2006 (Vol.2, Issue #2)
"Will US debt lead to a financial crisis?" is the title of a new KAIROS briefing paper on debt and finance issues.
This paper is an abriged and updated version of a discussion paper first prepared for the South North Consultation on "Resistance and Alternatives to Debt Domination held in havana last September.
The paper discusses the prospects for a global financial crisis caused by the USA’s huge external debts. It discusses some of (...) More

DEBTOR-CREDITOR RELATIONS IN GOOD TIMES AND BAD

by Susanna Mitchell

18 November 2005

The issues paper prepared by Financing for Development Office at the United Nations in preparation for the multi-stakeholder consultations on sovereign debt for sustained development states that ‘The expectation is that stake holders will want to focus their discussions on practical and realizable policies and processes for managing external sovereign debt.’ If these discussions are to have any lasting value, however, they require a dual focus. Creditor-debtor relations do not exist in a (...) More

WILL US DEBT LEAD TO MASS DEFAULTS?

by John Dillon

28 September 2005

This paper suggests that a looming global financial crisis caused by the USA’s own huge debts may create conditions for mass defaults or repudiations of illegitimate debts by Southern governments.
The United States of America is the world’s largest debtor. The US net international investment position, a broad measure of indebtedness that includes private foreign investment as well as bonds and loans, reached $2.48 trillion at the end of 2004. This is the amount by which gross foreign-owned (...) More