FTAA

[Jane Sweet]

Teufelsdröckh wrote:
> 
> calbert at tiac.net wrote:
> >
> > We anxiously await details of your alternative.......
> 
> As you seem to be interested, here's a good overview . . .
> 
> <http://www.globalexchange.org/economy/rulemakers/TenWaysToDemocratize.html>
> 
> Haff a fein viekänd,
> Diogenes Teufelsdröckh

There is an international movement demanding that all debt
be canceled in the year 2000 in order for countries to
prioritize health care, education, and real development.


 And what about the people that made the loans? Those loans
to build hospitals and schools/ Are they going to get their
money back? The lenders are not Shylarks, they are not the
Mafia, they need to get paid, not because they are greedy,
odious, but because your word is your bond or we can't
obtain credit. The debt market is very good market, it
works, but loan forgiveness and cancellations is not good
for anyone in the long run. The essay claims a conflict
between short term profiteers and long term development, but
seeks a short term solution to a long term problem. This is,
to put it mildly, backward. Who or what is going to bail out
the banks?  If the Nations don't pay back the loans, how
likely is it  that they will be able to get money in the
future? And they will need money in the future, in the
immediate future, like right away. Are they going to build
hospitals and schools without money, without loans? Oh, I
forgot, they are going to tax those nasty venture
capitalists and money changers. The UST floats billions
daily on full faith and credit. The best credit bar none.
The USA, and with exception of a small handful of Municipal
debentures, does not default, meaning it pays timely,
interest and principle, this is why its credit rating is so
damn good and this why (partly) its interest rates are low.
Trust is important. No one, not even the Junk Bond third
world debt vultures want to risk money on Nations that can
have debt canceled. If the debt is restructured, MORE debt,
not less, the confidence, the trust, the market will stand,
without it, those with money needn't take the risk. There
are plenty of places to lend money and make a good return,
lenders don't need to lend money to Nations that will not
pay.