Debt has long been a method used by capitalists to extract wealth from working people. We see this today as never before with entire countries in debt to the world's transnational One Percents. There are a number of reasons for this development, but the primary ones form the foundation for the system of capitalism: the sanctity of contracts, debt based monetary systems created by private banking elites, and the private ownership of socially produced wealth.
The author of this article questions the validity of the first pillar in relation only to sovereign debts. Thus, it is another limited liberal attempt to reform the system to make it less destabilizing. While this effort is laudable, we as activists must realize that the whole system is illegitimate and dangerous to the survival of humanity. Thus, our efforts must be focused on changing the system to one that is socially just and is capable of existing in harmony with nature.
Some would say that a debt must always be paid. Indeed, the payment of debt is also referred to as “honouring” of a debt. It is treated as more it seems than a simple return: it is treated above all as the keeping of ones word. However, in reality, the repayment of a debt (especially when dealing with a sovereign debt) should depend on the origin of that debt, to whom it was lent, under what terms and the potential benefit.
