At 04:57 PM 19/7/2001, you wrote:
From: "Marc Bombois"
<mbombois@whistlernet.com>
Understanding how money originates wins the
case for debt cancellation. Borrowers, whether individuals or countries,
are under the false impression that the banking system lends pre-existing
money. In truth, all bank loans consist of newly created money. The
banking system calls the loaning of money "issuing credit".
For an explanation of how money is created and how poor countries
should learn how to do this themselves democratically without going into
debt internationally, refer to my article published on the Jubilee plus
"Analysis" web page. Refer to: "The use of central
banks to spread ownership"
http://www.jubileeplus.org/analysis/articles/shann_COG_spread.htm.
Hector Maletta seems not to accept that the practice of poor countries
paying interest to rich countries to manufacture credit reduces the rate
of economic development in poor countries (and makes the rich countries
richer). The concern expressed by Hector Maletta that debt
cancellation "would close the window of any further credit" is
only relevant if unbalanced development takes place that requires more
foreign exchange than is generated by exports and investment.
A proposal on how all poor countries could buy-back their World Bank and
IFC debts is outlined in my article on "Liquidating the World
Bank" also posted on the same web site in the "Opinion"
section at
http://www.jubileeplus.org/opinion/shann_Liquidwb.htm
Regards
Shann Turnbull Ph.D.
P.O. Box 266 Woollahra, Sydney, Australia, 1350
Ph: +612 9328 7466 office; +612 9327 8487 home; Fax: +612 9327 1497;
Life long E-mail: sturnbull@mba1963.hbs.edu
Alternate:sturnbull@optusnet.com.au
with other papers & book at
http://cog.kent.edu/library.html