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[mrklaw]

US opposes debt relief plan

Now, this plan is supposed to offer 100% debt relief for the poorest countries in Africa. Apparantly it calls for selling some IMF gold reserves to fund it.

I can understand the US being hesitant about selling reserves, but I wanted to link the article generally.

I don't understand why the major countries of the world who are owned this money by Africa need to sell gold reserves to fund relief. Can't they simply all say "you don't owe us any more money"?

Most countries have already paid the original debts back many times over - its just the interest that is killing them now - it grows faster than they can pay it back.

 

[Instigator]

US opposes debt relief plan

Now, this plan is supposed to offer 100% debt relief for the poorest countries in Africa. Apparantly it calls for selling some IMF gold reserves to fund it.

I can understand the US being hesitant about selling reserves, but I wanted to link the article generally.

I don't understand why the major countries of the world who are owned this money by Africa need to sell gold reserves to fund relief. Can't they simply all say "you don't owe us any more money"?

Most countries have already paid the original debts back many times over - its just the interest that is killing them now - it grows faster than they can pay it back.

Part of the debt probably come from private interests, who are not ready to give Africa any breaks. Selling gold is a way to reimburse them.

 

[pollo]

this is great news

obviously sachs induced!
If you guys havent read it I suggest yall pick up sach's new book:

He talks about debt relief and whatnot for the poorest countries in the world and talks about poverty alleviation plans. Its a good read, but gets kind of redundant towards the end with his suggestions.