The Global South continues to be subject to neocolonial mechanisms that exacerbate the debt and climate crises. Achieving climate and economic justice requires structural reparations, countering Western debt generation traps and coordinated action to cancel debt to the rich capitalist “G7” countries, particularly the USA.
Figures for the first two quarters of 2023 show that the depreciation of US capital is greater than the creation of capital in the United States.
What’s happended in the last six months is that the world’s number one capitalist country is not creating any capital. This has only happended twice before in US history – one was at the height of the Great Depression of the 1930’s and the other was during the global financial crisis 2007-8. What this means is that the world’s largest economy heavily depends on capital and financial support from other nations.
The US has become the world’s largest economic parasite.
It’s like the US has become the world’s largest economic parasite. The world’s largest economy with the highest per capita GDP is being run by taking capital from other countries. This is what is behind the indebtedness of developing countries – the less developed countries are subsidizing the United States.
In this short video, John Ross, senior fellow at the Chongyang Institute for Financial Studies, Renmin University of China, explains the situation and argues that debt forgiveness is crucial for reviving the global economy. The current situation is “intolerable”, resulting in a significant amount of developing nations’ debt, which needs to be resolved through debt forgiveness by rich countries.
Source: T-House, ‘Reality Check’, Sep 9, 2023.