Wednesday, October 21, 2009

Latvia Targeted for Debt Peonage

http://maxkeiser.com/

Max Keiser, whose work I admire, interviews Michael Hudson (who I also admire) about the debt peonage system being directed at Latvia. Hudson is helping Latvia resist this debt peonage.

The IMF is demanding that Latvia cut social spending, hospitals, etc in order to "service" the nation's debt.

This debt was accumulated as individuals in Latvia purchased homes using foreign currency. Hungary has the same problem. Individuals in former USSR nations were encouraged to take out loans from western European banks. When nations such as Hungary and Latvia experienced currency collapses due to the financial crisis (hot money outflows helped crash their currencies), it became impossible for Latvians and Hungarians to repay mortgages denominated in foreign currencies.

Forcing individuals in nations such as Latvia and Hungary to cannabilize their nations in order to pay back debt inflated by the financial crisis is absolutely disgusting.

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