Yesterday the UN voted to introduce a protective framework for insolvent nations. The motion was sponsored by Argentina, a bankrupt country currently under attack from ‘vulture funds‘ that bought portions of its debt and are now blocking any restructuring deal on the grounds that it might reduce expected profits. The resolution was carried with 124 in favour and only eleven nations against. By and large these are home to powerful financial sectors that might lose out from restructuring poorer countries’ debts: the US, Germany, UK, Canada, Japan. There was one weird exception: Ireland.
Government will keep playing this down, but we are one of the most indebted nations on the planet. More than a quarter of our revenue goes directly to service borrowings. Only Greece and Panama spend more. Only Greece, Portugal and Papua New Guinea have greater international debt as a proportion of their economies (source). And yet our alleged representative votes to protect not the national finances or the wealth and health of the citizen, but our corrupt and corrupting financial services sector. Ladies and Gentlemen, do you see what we have become? A debtor nation, with a creditor leadership.