What if the IRS and FASB got together and said: “From now on loans to countries will be treated as loans to the current administration of the country, not the country.”
March 25, 2012 § Leave a comment
Might prevent another Gold Sacks and Greece. Or end neoliberalism altogether.
This wouldn’t be too popular in some quarters. For over a century oil companies have found it cheaper to bribe a local official for a cheap concession while leaving the local government on the hook for fulfillment. Then someone else has to deal with the ‘unrest’ when the local taxpayers find out they’ve been screwed. (Sound familiar?)
But it’s not exactly a secret any more what happens to lenders when they get to make someone else take the risk, is it?
Welcome to the Third World, USA and Europe. Enjoying the terms of the loans?