China’s loans pushing world’s poorest countries to brink of collapse

[Stevicus]

China's loans pushing world’s poorest countries to brink of collapse

A dozen poor countries are facing economic instability and even collapse under the weight of hundreds of billions of dollars in foreign loans, much of them from the world’s biggest and most unforgiving government lender, China.

apnews.com

It's a long article, but rather informative. It details how many governments are close to default or collapse due to the increasing burden of foreign debt. Kenya, Mongolia, Zambia, Sri Lanka, and Pakistan are going through severe economic crises at present. I recall Sri Lanka had a major upheaval last year when protesters took over the Presidential Palace and swam in his swimming pool. But they're still in a serious mess.

For their part, the Chinese are saying that they're trying to help, though they're blaming the US and the Federal Reserve. Meanwhile, Pakistan had to buy discounted oil from Putin just to keep the lights burning.

In Zambia, some people can't afford to buy food.

Inflation in Zambia has since soared 50%, unemployment has hit a 17-year high and the nation’s currency, the kwacha, has lost 30% of its value in just seven months. A United Nations estimate of Zambians not getting enough food has nearly tripled so far this year, to 3.5 million.

“I just sit in the house thinking what I will eat because I have no money to buy food,” said Marvis Kunda, a blind 70-year-old widow in Zambia’s Luapula province whose welfare payments were recently slashed. “Sometimes I eat once a day and if no one remembers to help me with food from the neighborhood, then I just starve.”

A few months after Zambia defaulted, researchers found that it owed $6.6 billion to Chinese state-owned banks, double what many thought at the time and about a third of the country’s total debt.

“We’re flying blind,” said Brad Parks, executive director of AidData, a research lab at William & Mary that has uncovered thousands of secret Chinese loans and assisted the AP in its analysis. “When you look under the cushions of the couch, suddenly you realize, ‘Oh, there’s a lot of stuff we missed. And actually things are much worse.’”

It's hard to know how much these countries owe because many of the loans are secret.

Does anyone foresee a time when the world will be debt-free?

Come to think of it, they've been talking about the possibility of a U.S. default. Is the world run by loan sharks?

What do you think?

 

[Valjean]

Sounds like China is the new IMF.
That used to be their gig.

 

[Debater Slayer]

Throughout history, military power has frequently translated into greater ability to exploit poorer and weaker countries as well as exert influence over them. Since both the US and China have military power and economic influence (which they have buttressed through various corrupt and hostile means over the years), I expect that there will be many more malignant effects on poorer countries from those two countries' policies.

 

[Debater Slayer]

Does anyone foresee a time when the world will be debt-free?

No. If anything, I think these drastic collapses and unrest will only become worse and more frequent as the climate crisis progresses. Climate migration could make this so much worse, too.

 

[Jimmy]

Well when we run out of oil and coal soon nobody will have to worry about anything. We can go back to living the old way. Oh wait, God’s gonna put an end to the world before that happens. Haha. Our time is fleeting.

 

[Stevicus]

No. If anything, I think these drastic collapses and unrest will only become worse and more frequent as the climate crisis progresses. Climate migration could make this so much worse, too.

It's really a shame that it's come to this. For a brief period at the end of the Cold War, there seemed a profound sense of hope and optimism for the future. People were talking about the "peace dividend," and hinted at the prospect that we could actually reduce our overall debt.

But now, 30 years later, we've entered another Cold War, there's a shooting war in Ukraine, upheavals in multiple countries, and the continued heavy burdens of massive debts. The US is struggling to maintain an Allied coalition, without going into default ourselves, while China and Russia are thumbing their noses and finding allies of their own.

 

[Stevicus]

Well when we run out of oil and coal soon nobody will have to worry about anything. We can go back to living the old way. Oh wait, God’s gonna put an end to the world before that happens. Haha. Our time is fleeting.

In the long run, we are all dead.

 

[F1fan]

Cost of life in modernity is more and more expensive. I'm not sure where the money will come from to pay for sustaining societies, especially the poorer one's. America's debt keeps going up, and the wealthy are accumulating more wealth. Austerity hasn't worked anywhere that it's been tried.

 

[Valjean]

It's really a shame that it's come to this. For a brief period at the end of the Cold War, there seemed a profound sense of hope and optimism for the future. People were talking about the "peace dividend," and hinted at the prospect that we could actually reduce our overall debt.

But now, 30 years later, we've entered another Cold War, there's a shooting war in Ukraine, upheavals in multiple countries, and the continued heavy burdens of massive debts. The US is struggling to maintain an Allied coalition, without going into default ourselves, while China and Russia are thumbing their noses and finding allies of their own.

War is profitable to certain industries. Did you expect us sto shut doen the wholr military industrial complex just cause we losta major enemy?
We can always find new wars and skirmishes.

 

[lukethethird]

Sure, blame China.

 

[Audie]

Sounds like China is the new IMF.
That used to be their gig.

And the world did not fall apart when everyone defaultrd.

The Euros have their own issues.
Greece, Spain et all owe billions that they,cannot
repay, to France Gdrmany and Britain who were
foolish enough to lend. Give.

 

[Audie]

Sure, blame China.

Why not? It's great sport.

Beats looking at themselves.

 

[Audie]

War is profitable to certain industries. Did you expect us sto shut doen the wholr military industrial complex just cause we losta major enemy?
We can always find new wars and skirmishes.

World economy depends on " defense "

 

[Revoltingest]

Why not? It's great sport.

Beats looking at themselves.

There are plenty of things that many countries deserve blame for.
China should stop trying to hog it all. Share the wealth!

 

[Revoltingest]

World economy depends on " defense "

This is because without an effective defense,
a country could end up like Tibet, ie, conquered
by a predatory stronger one.
I like how so many liberals have blamed the
MIC here for Putin's invasion of Ukraine.
(Poor Putin was the real victim here.)
I'll bet that before they go to sleep, they first
have daddy check under the bed for Northrop
& McDonnel Douglas.

 

[esmith]

Well when we run out of oil and coal soon nobody will have to worry about anything. We can go back to living the old way. Oh wait, God’s gonna put an end to the world before that happens. Haha. Our time is fleeting.

You mean 50 years for oil, 53 years for natual gas, and 150 years for coal, is soon?

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[Jimmy]

You mean 50 years for oil, 53 years for natual gas, and 150 years for coal, is soon?

When Will Fossil Fuels Run Out? - Infinity Renewables

Here at Infinity Renewables UK we believe in making a positive change by using safe sources of energy to power our world. Our organisation is strongly committed to making a difference in the fight against climate change and see solar power as the future of energy for generations to come. With...

infinity-renewables.com

150 years is nothin

 

[Audie]

You mean 50 years for oil, 53 years for natual gas, and 150 years for coal, is soon?

When Will Fossil Fuels Run Out? - Infinity Renewables

Here at Infinity Renewables UK we believe in making a positive change by using safe sources of energy to power our world. Our organisation is strongly committed to making a difference in the fight against climate change and see solar power as the future of energy for generations to come. With...

infinity-renewables.com

They all ran out long ago.

See " Limits to Growth" from about ten
yrs before I was born.
Probably out of print now except maybe as a joke

 

[Audie]

150 years is nothin

Including its not even true

 

[Revoltingest]

I speculate that China is using predatory lending
to exact concessions, eg, taking land, building
military bases. It's the smart thing to do.