If the debts are cancelled will the countries of the South immediately apply for new debts? I suspect the answer is ‘yes’. And what then? Will you be asking again in a few years for another write down of the debts? Probably! You can hardly expect banks to suffer a write down of their assets just because a country has borrowed more than it can afford to repay. To think it is to be very one-sided. After all, I have a business producing gifts with the customer’s coat of arms, if I want to buy more equipment to enlarge my business, I can’t turn to the bank in a couple of years and ask them to cancel the debt while I continue in business selling my coats of arms. Get real!
There are already moves to cancel a proportion of country’s debts, enough to bring the debts down to a manageable level so that repayments can be made without undue suffering by the respective country’s people. For me that is enough, and it is generous. At the end of the day it is the banks’ shareholders who have to shoulder the loss, and shareholders are mostly individuals who are saving for retirement; ordinary people who you have no right to ask to bear huge losses because of the bad management exercised by most leaders of Southern countries.