Reuters: Paulson slams "irresponsible" loans to poor states

[Eugene]

Paulson slams "irresponsible" loans to poor states
18 Sep 2006 02:38:11 GMT
Source: Reuters

SINGAPORE, Sept 18 (Reuters) - U.S. Treasury Secretary Henry Paulson called
on Monday for urgent action to stop "irresponsible" new lending to poor
countries whose debts have just been cancelled.

Paulson did not name names, but China has come under increasing fire in some
circles as one of a new breed of creditor governments that is lending money
on commercial terms to impoverished nations, many of which have recently been
granted debt relief by the international community.

"We are already receiving anecdotal evidence of creditors providing large
loans, the terms of which are unknown, to countries that have recently
received debt relief," Paulson told the Development Committee of the World
Bank and the International Monetary Fund.

"We need effective incentives or penalties to deter irresponsible borrowing
or lending," Paulson added.

-snip-

Full article: http://www.alertnet.org/thenews/newsdesk/SP157791.htm

[davidinalameda]

1. he doth protest too much

China is doing it to curry favor with 3rd world countries, like we did for years during the Cold War

[silverweb]

2. What's it to you, Paulson?

If China gets stiffed on their loans to poor countries, just what's it to you?

Ohhhh, wait.

:think:

Hmmm.... then they might call in some of our debt to them to cover their losses!

Is that what you're worried about, dumbass?

Maybe you and the other neoCONS should've thought of that before you mortgaged our children's and grandchildren's futures on your stupid fucking war of conquest and Empire!

[WCGreen]

3. Read Confessions of an Economic Hit Man...

And you will know why Paulson is upset....

[Sven77]

4. predatory lending to dictators

that swallow up all the funds and run to Switzerland, leaving the country to pay off its debt in natural resources for pennies on the dollar. the jackals are ruthless.

[flyingfysh]

6. I was about to recommend the same book

[ThomCat]

9. Right.

These countries will soon be under China's thumb because of that debt.

And if China gets into a financial pinch, well, they can call in the debt that the US owes them. And then we'll be under their thumb too.

[Kolesar]

5. For once, the GOP is correct about something

Wait until the debts fail and China comes collecting. They will take what they want in natural resources.

[Tempest]

7. What Paulson is really upset about

Is that China has replaced the IMF and World Bank as the premier predatory lender in the world.

[MountainLaurel]

8. Right on target

:applause:

[meganmonkey]

11. Ding ding ding!

:thumbsup:

[jwirr]

10. The loans that were forgiven had many capitalistic strings attached

to them that insured failure. I am not so worried about China lending these countries money - I want to know what kind of strings are attached. This time around the loans should be given to help further the common good instead of the corporate good.