A former student now at Temple

It is nice to know when arguments for decency come from former students. Bravo Sara.
This is an email sent to me:

Debt forgiveness...mind boggling concept!!!!

so this is something we talked about in class but unfortunately i didn't get to talk in class because i have no voice still...this really sucks

so hear me out on this one...

The G20 just met...which Obama was not at, i thought this was very wrong! what the hell is bush gonna do, it was called for a crisis, well we really don't have time to just meet and make plans for a future meeting if its a crisis, my point being Obama should have been there!...

now my true point about debt forgiveness...the president of Liberia? i believe it was Liberia...it could have been S.L....anyways he remarked on the fact that his country borrowed 5million and so far they have paid 16 million and have not even touched the principle that they borrowed they are still paying interest and will be paying interest for quite some time before they ever reach principle...so the idea that i was thinking over since class is...not to dissolve all debt to all countries but what if we were to get rid of existing interest...so say in the case i just mentioned, drop the rest of that debt but let the country that gave the loan keep the 16million it already has...or was it billion?...that way countries are not loosing out but countries that are poor have some leeway to continue borrowing and try to use that money they earn from there investments with there money to better there economy and country when you have countries like S.L. that pays 102% of there GDP to debt...how are they supposed to build hospitals and schools

so im not saying drop all debt but what if we simply pay back principle...now i know that we could not continually do this, but i think we need to do this just once for the sake of the world economy and its not like anyone is loosing out...because if we drop all debt even principle then countries that lend money aren't going to continue lending...and i know this will hurt institutions like the world bank who needs the interest...what little they usually ask for...to pay staff and to expand the amount they can loan....but Surely this would help the economy right now a bit...the economy keeps spinning due to people being able to have access to debt...i think its fair to say that...???...so i think in order to get the global economy back on its feet this is something that needs to happen...or something like this needs to happen to resolve the problem a little and this is the only form of compromise i can find between countries that want no debt forgiveness and countries that want all their debt dissolved

bad points about this plan:
1. someones always gonna be mad
2.large countries are gonna not as willing to lend if they think this will happen again
3. poor countries will over borrow in the future because they think if the world comes under crisis again there debt will be forgiven again
4. the world bank will be hurt

but honestly i think Brown of England is right to call for a Bretton Woods II...a total need to restructure...like we saw with Freddie and sally we still need regulations...and I'm not implying that this idea not come with some stipulation...but i think it needs to be thought of

What do you think??? need to know if I'm kinda right on this one do to my lack of ability to participate in class
DEAD ON SARA. Good Job.

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