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Have you noticed that no one talks about 3rd world debt these days? Remember Live 8? There seems to be a hierarchy of problems that the public/media keeps trac
by Tycho 14y ago
Have you noticed that no one talks about 3rd world debt these days? Remember Live 8?
There seems to be a hierarchy of problems that the public/media keeps track of. 8 Years ago we were all talking about global warming and 3rd world debt. Then the economy crashed. Now we talk about the economy all day, with climate change relegated to occasional page 4 articles when a new study is published. Nobody even mentions 3rd world debt.
And that gives you an idea of how likely anyone is to change their behaviour based off the predictions of climate scientists (or even based off actual climate change, given that it happens so slowly).
- unabridged 14y agoI don't understand the fascination with 3rd world debt, either the countries keep paying at the detriment to domestic spending or they default and end up with higher interest rates. That is it. These are non-recourse loans, the IMF or World Bank or whoever is not going to invade to get paid back. Debt forgiveness is still default, just more socially accepted. But just like default it will still end with less trust and higher interest.
- Tycho 14y agoDo existing national debt payments and potential higher interest rates for future borrowing have an equilibrium? I mean obviously the former helps keep the latter at bay, but can you really say they are in balance and that it wouldn't be better to simply default on the debt and then borrow less in future? I suppose if more countries got serious about cancelling the debt, there would also start to be talk from charities/activists of guaranteeing future rates.