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....
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.
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.
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.