A system was put in place to prevent corrupt governments from guaranteeing loans in quantities that could not be paid. That system was circumvented by our government, to serve purposes that our security bureaucrats deemed vital. As a consequence of this decision, a number of corrupt, unelected dictators and their associates were permitted to borrow and steal large sums of money.
Our government made a conscious decision to permit the overborrowing, and needs to share in the accountability for the consequences.
The banks made conscious decisions to lend the money, knowing full well that it was being stolen and that the governments were issuing more guarantees than they could cover, and they need to share in the accountability for the consequences.
The dictators and their associates made a conscious decision to steal the money, and they should certainly be held accountable.
Right now, the people paying the bills are the only people in the picture that never made a conscious decision in the matter. That seems... a bit unfair, to say the least.
I would not want to see complete forgiveness of these loans. I would like to see the burden distributed among those who took conscious risks. I think the banks behaved irresponsibly and should take a solid hit. The bank executives that made the decisions leading to the risks being assumed should be held accountable by their shareholders.
I think the US Government needs to admit their own unsavory role in the whole affair, and assume some portion of the responsibility. The elected and unelected managers that made the decisions need to be held accountable.
I think that a great deal more needs to be done to hunt down and reclaim the assets of the dictators and their associates, which could pay off substantial portions of the debt.
And I do think that the 3rd world governments should continue to pay a substantial part of the debt: not all the money was stolen, a large amount was legitimately borrowed and should be repaid.
I also think that, as Tim pointed out, it is pretty stupid to demand that 3rd world taxpayers pay off the entire debt, and at the same time systematically block them from exporting, which is the only way they can earn the hard currency they need to pay it. |
