I agree with the previous statement that money should be done away with completely.
It has become nothing more than incentive for thieves and crooks to emerge and take advantage of hard working people. How does a utility company justify billing a customer disconnection and reconnection fees along with the outstanding balance they couldn't afford in the first place?
The rich have harnessed our natural resources in order to keep us slaves. The entire country is in debt, aside from the rich, and millions of tax dollars are spent on utility assistance because we cannot afford it. We need to eradicate money, continue working for the common good, and fashion a rationing system that cannot be abused. If this happens, we will eliminate drug dealers, prostitutes, crooked politicians, thieves, most murders and people can prosper in careers they aspire to not simply for the money.
A rich American whilst travelling abroad stops in at a hotel, laying down a $100 deposit while he looks at the choice of rooms available. While the American is upstairs, the hotel manager takes the $100 and pays off his debt to the baker for the hotels bread. The baker takes the $100 and pays the miller for the flour used to make the bread. The miller takes the money to the local prostitute for 'services', the prostitute takes the money to the hotel to pay off what she owes for use of a room. The American comes back down stairs having changed his mind about staying there. He picks up his $100 which has come back to the hotel and walks out. Everyone's debt is gone and the American goes away happy with his money....
Currency is just a man-made promise from the Fed.
Countries canceling their world debt isn't going to solve the problem of the countries in the world getting along and being financially sound. However, it should be done because it is a step in the right direction. The right thing to do is to help other countries, and forgiving debt is part of making this a reality.
A day out of all dates to cancel all debts "everywhere!" A reset would be a miracle! To the highest of nations, down to the common man. By X date all debts are resolved. It would have to be agreed upon by major nations and a date chosen in secret and announced that from dates back all debts are resolved. What would this do to the economy? WOW!
Take for example, Haiti, a third world country that suffered a natural disaster over a year ago, and are still recovering. A country in debt, if it is not prospering, will not be able to pay that debt. It probably needs help. Cancel the debt, and it starts off with a clean slate, and may be able to prosper and grow. And it may then also be able to contribute to the world economy.
Listen up.....we really need to get rid of money in all. It is causing to much problems in the first place. Money has seperated us all into a loveless sociaty. Its sad to say that we feel like we cant help other countries because we dont have the money or we have to receive something on order to do it. We need to see that we are one human race and we are as strong as our weakest person. If children are dying because we are too selfish to help, then we (as a HUMAN RACE) needs to rethink our mindset off of money and help others that can actualy help us in the end. And if we want to stop terrorism, we need to have a Round Table Conversation system, so that we could solve situation in a peaceful way. Half of the countries usualy hate America because we are using 25-30% of the worlds resources unprofessionaly, and we end up using it for selfish reasons because we have joy in having lots of money. Instead of having joy seeing the HUMAN RACE come together and helping eachother out and finaly stopping unnessary war and leaving innocent HUMAN BEINGS to DIE for a selfish cause. And since the begining of time, MONEY has and always been the root of all EVIL. And since we know that.....WHY HAVEN'T WE GOT RID OF MONEY A LONG TIME AGO?.............
65% of our world is in poverty, and we sit back not being able to do anything about it ! However, countries could and have the chance to cancel all debt on third world countries. They will benefit greatly, develop faster. It would free the LEDC's from a huge burden and help them make a fresh start ! Besides its the west's fault that their in this state in the first place !
Due to the high debt the under developed countries will have an extra burden to sustain in the global market until they are provided a chance at par with developed countries which could be done by this gesture.
Reform needs to occur before the debt is cancelled of developing nations because most of the time the money being borrowed is not be used appropriately. While many say that debt repayment costs lives in the borrowing country, that is not true. Oftentimes, the money borrowed is being spent on weapons or other investments that have nothing related to the people, but everything to do with power. In order for there to be a discussion of debt cancellation, there needs to be some major political infrastructure changes in the borrowing countries and new terms. Money does not grow on trees or just get printed up when there is a deficit.
Its the interest that's killing these countries. Many 3rd world countries had dictators in place that created massive amounts of debt and obviously did not use the money for infrastructures like health and education. Then when the dictator is over thrown the country is still left with the debt and it keeps going up because of interest. What should have happened is that a country should refuse to loan money to a leader who's intentions are not for the people. I don't think getting rid of all the debt is necessary but decreasing it to the minimum of what was lent to the country in the first place would make more sense. That way the country who loaned the money would not be at a loss, and the 3rd world country could afford to pay back much sooner.i do agree that the countries should have to pay back what they owe but only what they owe not the interest that's attached. The 3rd world countries should be allowed to pay back when they can without having to worry about increase interest. Of course the country would have to prove that they are in fact impoverished because of their previous governments. This would be in order to free the impoverished countries so they can sustain themselves and not be forever enslaved in their debts to the west.
No real value - currency "printed" by banksters out of thin air. Easy to input a debt value into a computer and charge interest form money which has no productive value. Money should only be created backed by productivity. Easy to loan money out of thin air ... which devalues purchasing power.
Our debt based economic system is a monetary ponzi scheme. Money should only be used as a tool to change good an services and not as a way to profit from it.
If money would be based on real productivity ..... as a tool of exchange no inflation would be created, no interest would be charged .... money has no value per se - creating debt out of thin air is a tool to enslave people and entire nations by those who run our monetary ponzi scheme system
SO many countries are in more debt than they could ever pay. When a small country owes their Gross National Product in interest alone to a bank and cannot pay, rather than allowing them to default the banks coerce the water, land and mineral rights from these countries. This leads to the suffering of countless millions. The basic right to live for several million is a greater priority than the property rights of a relative few. Will this hurt the economy? yes, but I believe that in the long run more people will be better off . The people hurt by this system, often time, did nothing to incur this debt themselves. Perhaps banks should not loan so much out. It is predatory lending.
When we say that the US is $16T in debt, we must explore how this is possible. The Fed prints notes which are the World's reserve currency, and nobody questions the value of the dollar by objective means. Gold has an intrinsic value, but Dollars are fiat currency. Debt, today is nothing more than electrons, exchanged between bankers who charge interest on money that never existed, never sent and will never be collected. It is like a credit card, it is unsecured debt. Sure, they can "ruin your credit" if you default, but how do they perfect their claim? Will China invade the US to collect, or send "the boys" to break your knee-caps? No, they just adjust their currency so the junk they make is affordable so Americans can buy it on credit, and so it goes...
We need to clear the slate and make it a fresh start. This teetering back and forth is crazy and a waste of time and money. No one can agree on a fix. I believe if we just looked at it and cleared it and balance whats left fair for population size and environment. Hopefully then these politicians especially in the US would be wiser about coming together for a better and fair future. We need to balance the money hungry people with the people that really care.
yes, richer countries need to let third world countries forego their debts and form a common association. To run the whole world as leaders of all nations does not work. With a common aim to uplift their countrymen there has to be one single governing council to monitor world economics for uniform growth development and progress in all nations.
They're working everyday, all day and night, trying to pay back the money they owe to the other richer countries who are earning a lot more than them daily from taxes, trading from other countries and selling goods. The money that the third world countries owe, could be feeding their people, building schools and shelter and close by hospitals so if they do get hurt, they're able to get help quicker than having to walk over 2km for a doctor to treat them. With the money they're earning, these countries will eventually develop into a better place to live in with more education about diseases because it seems to be a big issue in places like Africa, aids infected 24 million Africans. In the absence of a medical miracle, nearly all will die before 2015. Each day, 6,000 Africans die from AIDS. Each day, an additional 11,000 are infected with it.
One of the periods the economy of the UK was going well was the 60s-mid 70s, inflation was a little higher but there was growth people could afford to buy houses, cars, have children and have holidays.
With inflation being higher sure interest rates were up this helped to slow down property price rises but the effect of higher inflation was assisting people to pay off debt. Also governments were able to pay off debt, with less debt in real terms they could invest in infrastructure and services such as health.
To control any economy by interest rates is almost absurd, lets look at an example. At the moment grain prices are on the rise due to poor harvest in the US, the price of grain is on the rise globally as it it traded globally simple supply and demand. Due to the differing make up of a countries economy this may for example cause inflation in country A above its target range, so they adopt the "let's put up interest rates because inflation is high". Will this country with say a population of 30 million by upping their interest rate bring down the global price of grain don't think so. In Australia last year the reserve bank was convinced for the second time in 4 years that the economy was expanding to quickly, unemployment was too low (heading to 5%). inflation was on the up and they cited that they had to raise interest rates due to price increase's of cigarettes adding to inflation. Who cares if cigarettes cost more? Its a good thing people may stop smoking the rise in price was due to higher taxes.
Bankers are there for themselves not the population of the world, political parties are there to ensure their survival and the survival of the people in them. They are full of people who are there for a career in politics not for the good of people.
There has to be a better way or were are screwed with people dictating to us how to live our lives in debt and going without whilst they are guaranteed full pensions and a life of comfort at our expense.
Don't distress while reading this.. but i have a simple question for you with significant ramifications.
If all debt should be repayed... All personal loans all government loans etc. How much currency would there be left in the world? ... hint. its a 1 digit number.
There can't be money without debt. The monetary system is never meant to work fair. Its about control.
bring back the greenback.
It is easy to say States need to repay their debts. But the truth is that a national debt is a promise of someone else's property made by the State toward its creditors. It is immoral for the State to use taxpayers' money or savings (through taxation and inflation) to pay back its dues and for the creditor to own a title over an unwilling proprietor.
Although the dept in some countries is incredible we mustn't think that this dept is something that we cannot remove. We can abolish the world dept and start from a new page start to live and enjoy life's little treasures. We can clean it out and if a country goes back into a large dept. Then we will only do this so often not every single year. Dept is necessary for trustworthiness and responsibility to become part of politics. I urge you to agree and support the idea of cancelling CURRENT world dept.
Why not try settling? Like at the end of a poker game, how you sit down and say I owe him five dollars, he owes you five dollars, and you owe me five dollars, so we're all even. If any debt remains after clearing all that stands, then take a hard look at what can be done. Overall we are not alone, we do have one of the highest national debts in the world, but many other countries do too, so why not take the initiative and clear the debts? I believe people are stuck in the past with they owe us and we owe them, without looking at the big picture. People in charge want the money, they don't want a resolution.
Well, let me explain myself. First of all, why is it illegal? It's illegal because it came out of nothing. Yes, literally. If you can't understand that, then read about it. Second of all, if the money came from nothing, is it debt too? Yes, of course. Remember 2 things: 1. In Modern Money Mechanics, it says if you go to bank and deposit let's say 10,000 pounds, the bank can then lend 10x of that! 2. Is it possible to repay all the debt in the world? No! Why? Because then there won't be any money left in circulation!
With worldwide debt cancellation the world would have a breathing space to start anew. Debt is the cause of lack of growth, and economic world powers like the USA have more than the rest of the world's debt combined and this creates a lack of progress in the world's production and financial health. People are now holding tight to their wallets and not spending as they fear for their livelihood. Debt cancellation is not something to debate on, it is the right step in the right direction.
Money needs to become real again and the power to create money should be controlled by the government. All banks should be abolished, replaced with a National storage store, used only has a money storage facility. Borrowing money should remain possible without interest, failure of not paying back within a certain amount of time would be jail. Interest charges would be illegal, no matter the situation.
Its clear that the debt system is bound to collapse soon.
Because this debt is not repayable. The money that would be saved from the payments can become: lower taxes for private enterprises, social welfare for those needed. Everybody is aware that programs that suppose to solve the debt problem (austerity) they don't work out. Instead the debt pile grows, social unrest rise, economies are destroyed and most of all debt is not repaid.
All countries are in debt to one another, usually because of war and not so transparent dealings by business sharks. We play with peoples lives to make a quick buck and get the best deal without thinking about long term effects. How long will it be before we are being cash for our lives. How many desperate people would take £20,000 for a life time trip knowing it was their last, or to make their families life happier? Feeding a growing population is a bigger concern than satisfying peoples egos. Wipe world debt, open borders and lets develop the world.
What is the purpose of life? To run on a treadmill of debt? I think there should be a one time wipe out of all debt and let people restart their lives. People are living poor unhealthy lifestyles as a product of debt. I read they were planning to out microchips in babies born in the US starting this year.i thought this was the country of freedom, the country where people wanted to come to live free? This is the opposite, it is putting all Americans who are "free" behind bars.
Before the Roman empire, when the civilizations came to a point that they could no longer pay their debts, the countries then decided to get rid of the debt and start from zero. This gave room once again to civilization to continue growing, being able to feed their families and so forth.
In 1931, President Hoover of the United States proposed a one-year moratorium on all War debts, which allowed extensive international discussions on the general problems of debt repayment to be held. However, no satisfactory agreement was reached. In the absence of such an agreement no payments have been made to, or received from, other nations since 1934.
The 1% elite. Bankers and Federal Reserves have almost brought the world to financial ruin, whilst giving themselves huge bonuses for their unscrupulous and greed-filled actions. It has to stop now. There is another way. We need to wake up, research and inform the 90% of this complete inequality and to rise up and take our world back and say. We're mad as hell and we're not going to take this anymore!
The worlds nations will be unable to ever pay off their debts. Everyone owes someone, and our currencies are representative of our "power". It was invented and we can set the reset button. It would cause a serious wealth and class problem for all of the nations of the world, but we could fix it with enough diplomacy.
Developed countries should cancel the debt owed by developing countries, loaned to governments who do not have the capability of ever being able to pay the debt back. Developing countries are therefore unable to move forward as money they could be spending on poverty reduction programmes they are paying back in debt interest.
This is the only way we can evolve our way of thinking from a materialistic society to one that cares for the good of everyone. If we continue to support an oligarchy who holds the worlds wealth it will collapse. These people (bankers, corporations) would rather see the world driven into ruin than to forgive the debts that are owed to them. Remember, every time history repeats itself the price goes up. With our civilization so interconnected the price will be ridiculous. I just hope people will read this and understand what I'm saying. You dont need a one and a half ton vehicle to get from point a to point b while people are lacking the basic necessities all around the globe. Our footprint on this planet must be reduced or mother nature will eventually say enough is enough. Stop the corporations from deforesting the amazon! We need to get over our selfish and aggressive instincts we've had for the past fifty thousand years but I fear because society and culture are moving so fast, by then it will be too late.
People everywhere live with nothing. Right now the worldwide debt is over 53 trillion dollars and continues to rise every second. That is ridiculous. If the governments everywhere would limit their spending on useless stuff and focus on the more important matters then maybe that number wouldn't be nearly as high as it is.
The people who control the debt do not reinvest sufficiently into social enterprise. Human progress has stagnated and the divide between rich and poor is growing. After nearly 100 years of American dominance of world affairs Africa has still not flourished the Middle East is still supressed.
Corporatism is not producing stability and world peace as we are lead to believe. We are all servants of an elite class of greed-driven soul-less "people"
This would spur economic growth world wide. This would give everyone a chance to reboot, to get some kind of footing. This should only be a one time chance, not something that going to happen on an on going basic. If all debt can't be cancelled, allow the big ticket items, such as mortgages, car payments, student loans, etc.
Where's the fun in continuing to play the game of monopoly when the holders of the properties and all the cash are vested in the winners who no longer have anyone to play with? Let's empty the board and start again. Sorry China, sorry Japan, we couldn't afford the goods.
Seriously, just wipe the slate clean, for everybody! Governments will start to govern for the people rather than the banks that own them because of debt, it will solve a myriad of problems that exist in the world, it will let countries get back on their feet, stop global domination of superpowers, kickstart the economy, invite a new renaissance, give the average joe a fighting chance, tear down this 1% bullcrap, give people a little more faith in their so called leaders, man, the list goes on and I don't have time to carry on I've got to get back to work to pay all the bloody bills I've been stuck with because the country doesn't have enough money, CUZ THEY'RE IN SO MUCH BLOODY DEPT, why? God knows, it's not like we ever see the benefit of all the money squandered, you know what, I shouldn't have to tell anyone why this needs to be done, if you can't see it then your part of the problem in the first place, wipe the debt, free the people, nuff said
Different countries are always owing each other money, and the debts keep mounting because no one is ever willing to pay off debts, instead, using money (sometimes wastefully) for something else. If the countries just take the debt and go x,"you owe me 5 billion, I owe you 5.1 billion; let's just cancel it out. I now owe you .1 billion, and you owe me nothing." Done. This lessens the debt for virtually every country by a lot and people don't need to take a look at those incredibly big numbers and say "gosh, why are we owing people so much money" Problem solved. Now just take tighter control of spending and don't raise it any more. Besides, where does all the debt money go anyway?
The debt is going to continue to increase, further lowering the conditions for many people in the world, reducing the chance of growth by limiting what can be brought. We are caught in a negative feedback cycle which will not end well.
Also wiping the debt away we will be able to set a new precedent in the world for trade, growth and living conditions.
This isn't about the money. This is about stealing these countries' natural resources and intentionally keeping half the world impoverished so that first world corporations get rich. One very ignorant person in the NO column actually typed "If the people of these countries couldn't pay back the loan they shouldn't have borrowed the money." Really? REALLY? How can anyone be that ridiculously naive?! The people of these countries didn't decide ANYTHING! They force their corrupt leaders to take the loans so they can get rich by building infrastructure in the country (making corporations richer so the money never even went to THEM in the first place, and no building a single thing that helps the poor people in that country) and then when they can't pay the loan and owe 100x the principle then they say just sell us you forests or your salt mines or your rivers and coastlines and oil and gold and anything else we can take. Debt of impoverished countries needs to be canceled and this iron first grip white people in America (like myself) have over the world markets needs to end. RIGHT. NOW!
If all countries weren't in debt they would be able to focus their own efforts into restoring their land, giving people food and homes, education, sciences and so on. It is because of our debts that we can't achieve these things with maximum speed or sustain it. If debt is also restarted, countries will be able to be more independent rather than relying on other countries.
The monetary system was invented by money as a means of bartering and personal financial worth. If everyone is in debt, and everyone owes everyone something else, would it not be easier to erase all debt worldwide and start over again? Each country could come up with new form of currency and retire their current ones. In the meantime, basic necessities could be supplied.
Work it out - we are never going to pay it back, increasing per year by a $1000 trillion in interest, do you think its worth canceling. This excludes personal bank loans, mortgages, credit cards, student loans. Ok Billionaires will suffer, Banks will suffer, but we will remind them that the 99% of the population, will not desert the 1%, as they did to us.
A lot of developing countries borrowed money from banks in developed countries, with promises to repay, and then they had a government change. The new rulers feel it is not fair that they have to repay money from a previous ruler that may have been stolen or wasted. But, the problem is that a sovereign nation that cancels a valid debt will not be loaned new money. Who would want that risk?
Countries should not cancel their world debt but, instead, try to pay it off. A country is not like an individual person, where the canceling of the debt can, most of the time, be easily absorbed by the creditors or other entities that are owed money. If a country cancels the debt that they owe to another country, this could cause conflict and war.
Unless all countries in the entire world can come to an agreement to cancel all debts, either owing or payable, there is not a good reason to cancel debts incurred by one country or even a group of countries. Since debt is an obligation that needs to be met and a contract that is entered into, it would not be just for some to cancel their debt while others maintained it. If this were to happen on a worldwide and unanimous scale it would be acceptable, but otherwise it should not be done.
The main reason a decision to support cancellation of debt by a country would be to say that country would then start with a clean slate and not be burdened by the debt they have, however this is a poor argument. If one nation cancels debt then the rest of the debtor countries may follow suit, all of a sudden the creditor countries wary of losses would either stop lending or greatly increase rates to compensate for increased risk. This in total would cripple the international capital market and would stop all inter country lending which is vital to the health of the global economy.
No, countries should not cancel their world debt because the worlds financial situation would be thrown into disarray which would probably lead to a major stock and bond sell-off. And if these countries canceled their world debt than countries who have money would never again lend to poorer or less well-managed countries which in turn would make those countries much worse off and could lead them to harbor terrorists. This would make the whole world a less safe place.
Although many countries do have world debts, cancelling debts can only lead to future problems. The country is the extension of a group of individuals, and to disregard the money owed (taxpayer dollars!) and expect debt forgiveness is absurd. Just as any individual ought to remain fiscally responsible, so should countries learn to not mismanage funds.
To write off debt to a debtor with a clean slate can be an act of compassion. This is especially true when the debtor is disabled or unable to pay it back. However, many nations were loaned the money on the promise it would be used to develop infrastructure or education and health and welfare. Those countries benefited. Their expanded economies should pay it back. The only cases in which debtor nations should be forgiven are third world nations in which the dictator siphoned the international loans to their Swiss bank accounts and the Cayman islands. In those cases, the debt should be forgiven to the newly democratic nation - and then go after the dictator's bank accounts to get the money back.
A broad forgiveness of national debts destroys people and institutions that loaned the money. Ask how many U.S. citizens would lose their savings in treasury bonds if the U.S. said "we're not paying it anymore". How many insurance companies can no longer pay life insurance and other insurance claims because the government bonds they invested in are now worth only toilet paper?
Blanket debt forgiveness also gives a drunk a drink. Run up lots of debt, waste the money, then refuse to pay it back. What, then, is to teach them not to run up new debts? To prevent a future financial irresponsibility? Nothing.
While it would be nice if countries canceled all world debt, if this were to happen, the capitalist system of credits and debt could no longer function, since a good percentage of growth is predicated upon imaginary values that banks loan out that they really don't have.
Countries have no right to cancel their debt. If they borrow from other countries and have negotiations set in place, then the nation in debt needs to act responsibly. By violating their promise to repay, they will only stir up hate and anger from their debtor. This is not smart in a world ruled by terrorism and violence. It sends the wrong message to cancel your debt and play foul. If a nation does not want debt, they shouldn't borrow and print money in the 1st place.
Canceling the world debt would only cause even more economic troubles in the current finical climate. Many countries own debt and this is substantial collateral for their economies, by canceling this debt one is throwing the money away of other hardworking people. Debt cancellation is not the proper choice, rather debt and economic reform are better options.
If all debt in the world could just be wiped away, I am sure a lot of people would love that, but unfortunately, just wiping out debt takes money away from someone else. If America wiped out all of its debt, who would be shortchanged? Debt implies owing money- what countries and people would suffer as a result of debt being wiped out?
I think that, without causing any offence, the people who vote yes for this debate are taking a rather 'hippy' stance, whereby an assumption is made that if we just forget about everything and start over, everything will be alright. The truth is is that everything wouldn't be alright, as it would set a precedent for 'second chances', which wont be second ones in the future, but rather seventh or eighth chances. Politicians need to come together to find a solution, as i have no idea how to solve the debt crisis
If you cancel the debts and everyone is free to just walk out on their debt, everyone keeps the items (real estate, cars etc.) that they borrowed money for in the first place. That would mean that everything is suddenly for free and provided by the banks causing the banks to fail because they lent money to the borrower. Money would cease to exist and a deflationary collapse would occur. That is because there is always more debt than money due to interest, credit and fractional reserve banking. And since money is debt and you cancel it out there would be no money.
It would be unfair to the countries that lent the money. And trust would be lost. No one would loan to the countries anymore. No one would buy their debts/bonds. A debt crisis would amass. It's exactly what's happening to Greece right now. Unless we want to end up like them, we need to start paying off our debts and show the world the United States is still a safe country to put your money in.
If debt is completely cancelled who would want to lend out money again after being burned the first time for lending money?
If you lent me $100 and I said the slate has been wiped clean, would you lend me money again, and how would you feel?
Now magnify this feeling by 20 trillion.
I have burrowed the money from you so there is no conceivable reason that I should not have to pay that back.
I think one of the only way governments can repay the huge amounts of debt they have racked up is setting interest rates to 0% for money borrowed pre-2013.
Starting over and wiping the slate clean just to address an obvious problem is tantamount to economic suicide. The real problem with just throwing out the rule book, is that there will have to be a new way of thinking, a new perspective so to speak. Never mind the fact that while the world is in a state of chaos, waiting for a solution; there would be many people who would want to go back to the way things were, either out of fear of "change" or out of desperation and uncertainty. While I wont pretend to have any idea what will happen in these times, I can assume with an almost absolute conviction the world will face hard times. Yea I might be exaderating, and maybe even fear mongering a little. But this is the exact reason politicians take's what the public suggests only under advisement. They don't just nuke North Korea or Iraq just because the "wise" American people find them to be a nuisance.
I just ask to anyone who is leaning toward yes, consider not just the pros, but also to take a good hard look at the cons. Look at the big picture and discern for yourself. Would the world as a whole gain anything from this? Its easy to complain how flawed a system is, but until there is an alternative or a solution ready, complaints should remain nothing more than complaints.
But hey what do I know, I'm just a gainfully unemployed college student who knows nothing of the world and how it works. All I have is my common sense. And I guess this is just my 2 cents, for what its worth.
The Geo-political implications would be immense. It's all a chess game when it comes to the global scale of things. The major economies of this world lend money to the 3rd world nations, knowing that they cant pay it back, to gain control of resources and politics of that nation. Debt is a way of control. Think about it. Eliminating that debt would mean our world as we know it today would not be the same. Prices of natural resources and commodities would sky-rocket and the monetary system would collapse.
Because it isn't fair. The interest rates put on these debts being borrowed is enormous. They can only just about pay back the interest each year. I feel that what should happen is that the interest should be taken off and the countries should only give back what they borrowed.
While seen as an easy solution, it is actually more difficult. Money is still needed to finance government programs. Things cannot be done. It simply won't work. Debt is unequal. Entire countries will have to be laid out again. It will just mess up the already messy world. So, no.
Cancelling debts sends out the wrong message to countries and allows them to live on the incomes of other countries without paying anything back. Paying off debts forces a country to make money thus improving there own economies. Furthermore, if the debts were cancelled, other countries will be less likely to lend money to those previously in debt which could negatively impact them if they were to face a crisis. Finally, cancelling debts won't immediately improve the financial states of countries as money will go to corrupt governments or be spent on war or weapons.
Because sooner or later they will become developed and will remove the debt. However I think it would be a massive help to give the countries a fresh start to possibly help raise living standards for the citizens. But still I think with almost every country in recession you should not just cancel out third world debt.
Peolpe need that debt the other counrties shouldn't have borrowed it if they couldn't pay.Canceling debt is unfair to all nations. Plus, the trust of the entire world would go out the window.Debt should not be canceled unless it is going to be canceled by all.
Unless all countries in the entire world can come to an agreement to cancel all debts, either owing or payable, there is not a good reason to cancel debts incurred by one country or even a group of countries. Since debt is an obligation that needs to be met and a contract that is entered into, it would not be just for some to cancel their debt while others maintained it. If this were to happen on a worldwide and unanimous scale it would be acceptable, but otherwise it should not be done.No, one country canceling their world debt would encourage other countries to cancel there debt and it would soon spiral into the largest international debt crisis ever.
The main reason a decision to support cancellation of debt by a country would be to say that country would then start with a clean slate and not be burdened by the debt they have, however this is a poor argument. If one nation cancels debt then the rest of the debtor countries may follow suit, all of a sudden the creditor countries wary of losses would either stop lending or greatly increase rates to compensate for increased risk. This in total would cripple the international capital market and would stop all inter country lending which is vital to the health of the global economy.To write off debt to a debtor with a clean slate can be an act of compassion. This is especially true when the debtor is disabled or unable to pay it back. However, many nations were loaned the money on the promise it would be used to develop infrastructure or education and health and welfare. Those countries benefited. Their expanded economies should pay it back. The only cases in which debtor nations should be forgiven are third world nations in which the dictator siphoned the international loans to their Swiss bank accounts and the Cayman islands. In those cases, the debt should be forgiven to the newly democratic nation - and then go after the dictator's bank accounts to get the money back. A broad forgiveness of national debts destroys people and institutions that loaned the money. Ask how many U.S. citizens would lose their savings in treasury bonds if the U.S. said "we're not paying it anymore". How many insurance companies can no longer pay life insurance and other insurance claims because the government bonds they invested in are now worth only toilet paper? Blanket debt forgiveness also gives a drunk a drink. Run up lots of debt, waste the money, then refuse to pay it back. What, then, is to teach them not to run up new debts? To prevent a future financial irresponsibility? Nothing.
That doesn't even make sense.
Canceling debt is unfair to all nations. Plus, the trust of the entire world would go out the window.
canceling the world debt is flat out unfair to countries who have been fiscally responsible and rewards those nations who have been fiscally irresponsible.