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"Odious Debt" - A Definition

Tyler Durden's picture




 

Perhaps it is time to look at some basic defintions for a term that will soon be quite prevalent...

Odious debt

In international law, odious debt is a legal theory which holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are thus considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

Defintion

The doctrine was formalized in a 1927 treatise by Alexander Nahum Sack, a Russian émigré legal theorist,[citation needed] based upon 19th century precedents including Mexico's repudiation of debts incurred by Emperor Maximilian's regime, and the denial by the United States of Cuban liability for debts incurred by the Spanish colonial regime.

According to Sack:

When a despotic regime contracts a debt, not for the needs or in the
interests of the state, but rather to strengthen itself, to suppress a
popular insurrection, etc, this debt is odious for the people of the
entire state. This debt does not bind the nation; it is a debt of the
regime, a personal debt contracted by the ruler, and consequently it
falls with the demise of the regime. The reason why these odious debts
cannot attach to the territory of the state is that they do not fulfil
one of the conditions determining the lawfulness of State debts, namely
that State debts must be incurred, and the proceeds used, for the needs
and in the interests of the State. Odious debts, contracted and utilised
for purposes which, to the lenders' knowledge, are contrary to the
needs and the interests of the nation, are not binding on the nation –
when it succeeds in overthrowing the government that contracted them –
unless the debt is within the limits of real advantages that these debts
might have afforded. The lenders have committed a hostile act against
the people, they cannot expect a nation which has freed itself of a
despotic regime to assume these odious debts, which are the personal
debts of the ruler.[1]

Modern impacts

Patricia Adams, executive director of Probe International (an environmental and public policy advocacy organisation in Canada), and author of Odious Debts: Loose Lending, Corruption, and the Third World's Environmental Legacy, has stated that:

by giving creditors an incentive to lend only for purposes that are
transparent and of public benefit, future tyrants will lose their
ability to finance their armies, and thus the war on terror and the
cause of world peace will be better served.

In a Policy Analysis for the Cato Institute, Patricia Adams suggested
that the debts incurred by the Iraqi state during the rule of Saddam Hussein are odious as the money borrowed was spent on weapons, instruments of repression and palaces.[2]

A recent article by economists Seema Jayachandran and Michael Kremer
has renewed interest in this topic. They propose that the idea can be
used to create a new type of economic sanction to block further
borrowing by dictators.[3] Jayachandran proposed her new recommendations recently at the 10th anniversary of the Jubilee movement held at the Center for Global Development in Washington, D.C.

 

 

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Wed, 06/15/2011 - 13:11 | 1371630 Sudden Debt
Wed, 06/15/2011 - 13:17 | 1371645 Cassandra Syndrome
Cassandra Syndrome's picture

Sweet find SD, nothing like a bit of Rothbard to explain the madness we live in now. I wonder what he would make of it all if he was still alive?

Wed, 06/15/2011 - 13:22 | 1371687 g
g's picture

Rothbard

Mises

Hayek

Paul

Hazlitt

Bastiat

Good stuff, all available at mises.org

Wed, 06/15/2011 - 13:47 | 1371795 Cash_is_Trash
Cash_is_Trash's picture

Schiff

Rockwell

Rogers

Faber

Just putting some good names out there.

Wed, 06/15/2011 - 13:47 | 1371818 g
g's picture

Agreed, good choices, add

Martenson

Shedlock

Celente

Wed, 06/15/2011 - 13:51 | 1371838 EscapeKey
EscapeKey's picture

John Mauldin's "Endgame" is recommendable, too.

As is "Monetary Regimes and Inflation" by Peter Bernholz.

And Reinhart/Rogoff's epic "This time is Different".

Wed, 06/15/2011 - 14:27 | 1372001 string
string's picture

Basquiat
Schnabel
DeKoning
Appel

Wed, 06/15/2011 - 14:33 | 1372020 TruthInSunshine
TruthInSunshine's picture

G. Edward Griffin, a true pioneer who exposed the farce that is our de-loved 'Federal' Reserve Bank (how it came into fruition and who were the players behind its formation and their goals), the ultimate Ponzi of fractional reserve banking-based economic policies, writing a precise, historically accurate and priceless national treasure in the form of one of the greatest works of non-fiction of all time.

Wed, 06/15/2011 - 13:35 | 1371754 nevadan
nevadan's picture

Is that where the info on the pound sterling came from that you cited for me a couple of weeks ago?

Wed, 06/15/2011 - 15:30 | 1372284 Sudden Debt
Sudden Debt's picture

no that was a combi info :)

Wed, 06/15/2011 - 14:21 | 1371972 Syrin
Syrin's picture

Another who frequents mises.org

 

Brings a tear to my eyes.

Wed, 06/15/2011 - 13:15 | 1371632 NotApplicable
NotApplicable's picture

ALL government debt is odious.

Repudiate!

Wed, 06/15/2011 - 13:19 | 1371655 redpill
redpill's picture

Odious Maximus Debtious, I think he was a Roman emporer...

Wed, 06/15/2011 - 13:35 | 1371752 mayhem_korner
mayhem_korner's picture

His cousin tid bittus velocitus was the roadrunner...

http://www.youtube.com/watch?v=4BD2xe45GZY

Wed, 06/15/2011 - 14:22 | 1371942 Manthong
Manthong's picture

I learned all that I know about the three laws of motion, gravity and the lever from those two.

Wed, 06/15/2011 - 14:23 | 1371981 A_MacLaren
A_MacLaren's picture

A MONETARY system based on debt is Odious.

Wed, 06/15/2011 - 13:12 | 1371640 the_magician
the_magician's picture

a.k.a. odorous debt.

Wed, 06/15/2011 - 22:02 | 1373299 Sambo
Sambo's picture

malodorous imho

Wed, 06/15/2011 - 13:17 | 1371648 TheTmfreak
TheTmfreak's picture

I have been thinking about this for some time.

One could argue that ANY debt occurred by a government on the behalf of the people would be odious debt. Who defines best interest of the nation? Mob rule? Those who "won" and get to write history?

 

Wed, 06/15/2011 - 13:59 | 1371881 Mad Cow
Mad Cow's picture

How can a state, that can print its own money, be in debt?

Wed, 06/15/2011 - 14:13 | 1371954 Jason T
Jason T's picture

You are thinking of Lincoln's days when he issued Greenbacks or Hitler when he issued state backed bills of credit.  

America has a bank called Federal Reserve whom we borrow money from and pay them interest on.  America doesn't print its own money, the Fed does the printing and they get to charge citizens of the once sovereign nation called the USA interets.

Wed, 06/15/2011 - 14:20 | 1371965 Mad Cow
Mad Cow's picture

Thanks, that's exactly why the debt is bullshit.

Thu, 06/16/2011 - 01:23 | 1373629 FlyPaper
FlyPaper's picture

Bullshit unless you were the one who earned the money to loan to Uncle Sam.  Not so much bullshit for the lender - it was real money at one point.  That a bank can use a computer to produce money and not do a damn thing that is productive in terms of actual wealth creation, demonstrates the leech-like dependency of the financial and banking system on real producers.  This is why our banking system will fail; we're out of assets and we destroyed our economic base.

Wed, 06/15/2011 - 14:29 | 1372010 traderjoe
traderjoe's picture

In the fractional reserve system, the commercial banks loan money created out of thin air, at interest. And in the case of UST's, against the collateral of the future labor of debt-slaves.

Wed, 06/15/2011 - 15:10 | 1372071 Mad Cow
Mad Cow's picture

Yep.

Private banks should be allowed to lend at interest, provided those loans are not created out of thin air just as you say. If someone wants to get a loan at interest, it's their choice.

The money "created" at the Fed, or any other privately owned central bank, should not have interest attached to it at birth. Therefore, the people of a country cannot be in debt, because their gov can print its own money, with no interest attached. So when you hear someone say, "austerity," you can tell them it's all bullshit, and a fraud, to enslave.

Wed, 06/15/2011 - 17:06 | 1372619 Uncle Remus
Uncle Remus's picture

Austerity, yet another word for nothing left to lose.

Wed, 06/15/2011 - 14:07 | 1371897 GoinFawr
GoinFawr's picture

Try that one on your student loan officer (assuming you don`t live in a nation that sees the value in post secondary education and has a high enough standard of living to stand behind it).

Oh shit, nm, that`s `personal` debt, there can never be anything odious about that... we all know that every seventeen year old is well versed in the dynamics of personal responsibility years before they mark their 'x' on any legally binding documents.

Wed, 06/15/2011 - 16:52 | 1372577 RockyRacoon
RockyRacoon's picture

http://reason.com/blog/2011/06/07/taxation-theft-animated-by-slo

Understanding Coercion

Everyone understands why it's wrong for a hoodlum to demand that you hand over your wallet, and threaten you with violence if you don't. But very few people understand the corollary between that situation and the insidious nature of government's coercive powers.

The following short illustrated video from Reason.com does a great job of explaining the fundamental failure of principle in the operating methodology of today's nation-states. It is very well worth a watch, and passing along.

Wed, 06/15/2011 - 13:19 | 1371653 Id fight Gandhi
Id fight Gandhi's picture

Good thing we elected smart people with our best interests in mind.

Wed, 06/15/2011 - 13:17 | 1371661 Highrev
Highrev's picture

How long have you had this post queued up and ready to go?

Always in front of the curve. Great job as usual!

Wed, 06/15/2011 - 13:22 | 1371668 The Fonz
The Fonz's picture

Here comes RUT 780, this is where unlimited buying appeared two days ago...

Wed, 06/15/2011 - 13:25 | 1371696 The Fonz
The Fonz's picture

There it is, solid unbreakable wall of green ticks. Fucking obvious.

Wed, 06/15/2011 - 13:34 | 1371749 richard in norway
richard in norway's picture

but how do they do it, it seems to be a hosepipe strategy, is it done through the banks, or is it the central bankers acting in concert

 

i can see whats happening but don't understand the how

Wed, 06/15/2011 - 13:44 | 1371775 The Fonz
The Fonz's picture

The money has to come from the Fed, algos are implementing the strat. Its too obvious though, you HAVE to lie to the market to keep it from eating you alive. Someone is going to come up with an algo to eat their algo.  

 

Who the hell is getting these stocks though?

Wed, 06/15/2011 - 13:50 | 1371816 richard in norway
richard in norway's picture

i think it might be the taxpayers that end up with the worthless stocks, but not to worry they sell the stocks at a loss the day after

 

maybe

 

but the important thing is that the tv news does not talk about a stock market crash

Wed, 06/15/2011 - 14:04 | 1371825 The Fonz
The Fonz's picture

I am sure the taxpayers paid for those stocks, what I am concerned about is who gets them :)

Today is get a drink early day. Like now.

Wed, 06/15/2011 - 13:28 | 1371673 TruthInSunshine
TruthInSunshine's picture

Debt = slavery

Ponzi scheme of fractional reserve banking (see Modern Money Mechanics, the esteemed 'Federal' Reserve's own playbook) relies on increasingly larger issuance and absorbtion of debt to keep the fiat=credit=debt economic "growth" continuing, lest the pillars of salt upon which the foundation of their structure collapse.

 

***Bankster/Jackal Breaking News Alert***

Federal Reserve Chairman Ben S. Bernanke has pleaded with the indebted all over the world to NOT, we repeat, NOT pay back their debts - assuming his message is to the small minority of entities and individuals that are so able to do so - (this defeats his efforts to destroy the holding power of entities and individuals to maintain ownership over their most valuable and necessary assets), and more importantly, he is pleading for all to please take on as much additional debt as possible, as it is the patriotic duty of all to their alleged sovereign nations to do so, even as their sovereign nations to which they allegedly belong cut deals to sell the soil from underneath the very feet of their citizenry. Thank you, and God Bless the NWO, Fractional Reserve Banking, Ponzi & The House of RedShield.

***This Has Been A Bankster/Jackal Breaking News Alert***

Wed, 06/15/2011 - 13:19 | 1371677 Clampit
Clampit's picture

Sovereign debt - the ultimate unsecured debt.

Wed, 06/15/2011 - 13:30 | 1371730 TruthInSunshine
TruthInSunshine's picture

I didn't junk you, but the world WILL soon find out  how 'secure' the Greeks, Portugese, Irish, Spaniards, Italians, and yes, ultimately, Brits and Americans believe 'sovereign debt' (an oxymoron by definition if a nation's ability to print its own interest free currency hasn't been hijacked, but I digress) really and truly is.

The Greeks very well may hang the politicians and banksters on lamp posts, and even if that is just the beginning with the PIIGS+UK+Japan+US ball rolling now.

No people seem to like it when shadowy figures start staking claim to their terra firma.

Wed, 06/15/2011 - 14:03 | 1371902 Clampit
Clampit's picture

At some point in fiatopia the rubber will meet road as dreams of Ponzi promises meet the reality of surplus labor by ensuing generations. Thinking it's possible to tax labor enough to cover the real [inflation adjusted] promises is one of the more preposterously stupid things one can do, especially with said labor reading up on the capital monopoly here in intertube land.

And keep the junks coming, it's rather entertaining to watch people fight the current.

Wed, 06/15/2011 - 14:15 | 1371904 Cdad
Cdad's picture

 

Welcome to the BlowHorn [CNBC] Cliche Downs.  It is a lovely day and the track is dry.  Just look at those colorful jockeys and interesting people in the stands.  This is a seven horse claiming race.

The line up:

In gate #1, we have Buying Opportunity, a 2 year old gelding and one of the favorites for today's race.  In the second gate, Historically Cheap Valuations, going off at 1.1:1.  In gate #3, Kicking the Can Down the Road, who just two days ago was posting odds of 3:1, but  is now sporting a .25:1 payout, today's odds on favorite.  In gate #4, Global Growth, an old stag who has seen his odds widen to 4:1 overnight.  In gate # 5, Channel Check, a horse that has recently seen some controversy.  Multiple blood tests have been administered on this gelding by Expert Networks, but no substances have been found in the animal and the BlowHorn race commission has given him the go for today's race.  In gate #6, a special horse that has not raced in almost two years, Ring Fence.  And in the outside gate, Mutual Fund Redemption, the long shot going off at 5:1, a comparatively small horse in stature that no one can see coming, to be sure, but fresh off a recent victory at the Alzheimer's Run.

The jockeys are warming up 'em up.  Mutual Fund Redemption is high stepping it, looking very sporting, indeed.  Buying Opportunity is looking ever calm and confident.  Historically Cheap Valuations...and oh my, look a the size of those balls!  Place your bets gentlemen as the windows will be closing shortly.

 

 

 

 

Wed, 06/15/2011 - 14:36 | 1372036 traderjoe
traderjoe's picture

Nicely played.

Wed, 06/15/2011 - 18:04 | 1372769 Milestones
Milestones's picture

Great post coming to you from the infield of Santa Anita.      Milestones

Wed, 06/15/2011 - 13:23 | 1371678 Caviar Emptor
Caviar Emptor's picture

As Dirty Harry once said: "Go Ahead. Buy My Dip" 

Wed, 06/15/2011 - 13:24 | 1371681 mayhem_korner
mayhem_korner's picture

Odious debt = insanity defense

Where's Johnnie Cochrane...

Wed, 06/15/2011 - 13:29 | 1371701 TruthInSunshine
TruthInSunshine's picture

If the debt doesn't fit, you must acquit!

Wed, 06/15/2011 - 14:27 | 1372002 NotApplicable
NotApplicable's picture

If the debt is odious, it'll take your guns to deal with us!

Wed, 06/15/2011 - 14:29 | 1372011 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

How about "If the debt doesn't fit, don't pay shit"

Wed, 06/15/2011 - 15:04 | 1372167 TruthInSunshine
TruthInSunshine's picture

The opposite of that is Bernanke & Dudley's Maiden Lanes (all of them, however many there are), stuffed to the gills with priceless treasures [sarc] like 'The Red Roof Inn,' which are now worth approximately 3 cents on the dollar of what Bernankistain paid to the financials formerly holding this toxic shit.

Wed, 06/15/2011 - 15:09 | 1372181 TruthInSunshine
TruthInSunshine's picture

Double tap.

Wed, 06/15/2011 - 17:08 | 1372625 CompassionateFascist
CompassionateFascist's picture

Under the house. And he doesn't smell very good.

Wed, 06/15/2011 - 13:25 | 1371697 Cole Younger
Cole Younger's picture

Basically, the in debt nations need to be overthrown by there people and the debt goes away....hmmmm...I like it...It's likely in the U.S. future..

Wed, 06/15/2011 - 13:29 | 1371704 Agent P
Agent P's picture

Obama's credit score just plummeted.

Wed, 06/15/2011 - 13:33 | 1371743 Silver Dreamer
Silver Dreamer's picture

You need a valid SSN to get a credit score, no?

Wed, 06/15/2011 - 17:20 | 1372657 Uncle Remus
Uncle Remus's picture

You can borrow one of those too.

Wed, 06/15/2011 - 13:30 | 1371709 Eireann go Brach
Eireann go Brach's picture

Is he Brian Sacks grandfather?

Wed, 06/15/2011 - 13:41 | 1371762 AldoHux_IV
AldoHux_IV's picture

Great article TD-- Odious Debt will be one of many ways to bring the centrally planned regime to justice. Start with the G20+ and their concerted efforts to extract any asset or resource from countries while burdening them under massive amounts of debt.  Aided by the IMF, Worldbank, central bankers, the global financial institutions, and their corrupt politicians-- they will be responsible for the $150Trillion in debt owed to humanity.

Like tyrants they have taken away our individual freedom and rights and opportunity to provide for ourselves and our families. They seek to kill off those who are not in their inner circles of power and enslave the masses under the tyranny of debt and bailouts that the people have seen no benefit from.  The wealth gap, income disparity, and employment have all diverged from equilibrium and this debt has proven to benefit only the centrally planned regime and bury generations of people into mass economic graves.

Wed, 06/15/2011 - 13:47 | 1371799 gwar5
gwar5's picture

In 1861 Mexico (Greece) defaulted on their debts and the armies of three countries: England, France and Spain invaded and overthrew the government.

It was Wikileaked to Lincoln they were also poised on the southern border to intervene on behalf of the Confederate army in the Civil War. Lincoln called on Russia for an assist and the Czar obliged, putting Imperial Navy warships in strategic harbors on the West and East coasts of America as a warning not to intervene. It worked.

Banker history, conveniently redacted from your public schoolbooks.

Thu, 06/16/2011 - 08:02 | 1373873 blindfaith
blindfaith's picture

where did you get this???????

I know Texas ( being the center for text book publishing, this is a fact not opinion), is well known for rewritting text books, but this is one step beyond.

Wed, 06/15/2011 - 13:44 | 1371805 Sofa King
Sofa King's picture

Holy, Shit...Macke is back!!!

 

http://finance.yahoo.com/blogs/breakout/

Wed, 06/15/2011 - 14:12 | 1371937 TruthInSunshine
TruthInSunshine's picture

Macke was on the verge of murdering Dennis 'Beaker' Kneale some time ago, and it was a thing of beauty to watch in real time:


  Jeff Mackey
Wed, 06/15/2011 - 16:56 | 1372589 RockyRacoon
RockyRacoon's picture

A teeny bit o' dope goes a long way when dealing with a brain like his.

He may be straight now, but he's still rather obtuse.  He's a treasure!

Wed, 06/15/2011 - 13:46 | 1371813 slewie the pi-rat
slewie the pi-rat's picture

when i looked up "odious" it said:  hank paulson

Wed, 06/15/2011 - 14:01 | 1371873 ike
ike's picture

I was trying to place this definition everywhere in last 6 months

on MaxKesier,

on Peter Schiff youtube chanel and much more blogs

This is very important to know!!!!!

 

 

Wed, 06/15/2011 - 13:58 | 1371875 allenaki
allenaki's picture

Greek Debt is an Odious Debt.

It fulfills all the requirements, 6 criteria.

http://allenaki.wordpress.com/2010/10/26/odious-dept-and-burden/

The 6 criteria of a Sovereign Odious Dept SOD are:
Νο 1.
The Banks and Hedge Funds/Investors cooperated (or kept silence) in "forming" Statistics (the famous GREEK STATISTICS!)
CRITERION FULLFILLED.

Νο 2.
Europe contributed in falsifying/forming the sovereign's economical data.CRITERION FULLFILLED and certified.

No 3:
Corruption (sovereign, companies, banks, Funds, Investors, all feed each other).
CRITERION FULLFILLED.

No 4:
The Banks and Hedge Funds/Investors cheated their clients (organizations, other banks, private investors, pensionists' funds etc. about the toxic condition of the greek derivatives (TOXICITY) they sold them.
CRITERION FULLFILLED.

No 5:
DERREGULATION: The dowgrading of the Greek Economy by JPM, S&P, GS, etc.
Europe doesn't have its own procedures to control financial credibility. These companies are shorting the greek debt.
CRITERION FULLFILLED.

No 6:
Α  Sovereign Debt is classified as Odious when the people of this country suffer because of the violent urge to pay it off (foodless, workless, homeless, health, education, safety, etc). Happening now in Greece with Memorandum 1, IMF and Troica.
CRITERION FULLFILLED.

Greece has tο analyse the Debt, which part of it is Odious and which not, deny the Odious Part of the Debt, return to Drachma and reset its economy. Cruel, but no other way.

It's called Seisachtheia (Internal and External).

Wed, 06/15/2011 - 15:04 | 1372170 Urban Redneck
Urban Redneck's picture

How was the outstanding debt of Greece not contracted to meet the needs and interests of the state?

 

Wed, 06/15/2011 - 16:40 | 1372538 allenaki
allenaki's picture

Criteria 1., 2, 3, 4. combined
The whole Greece's history since it became a state is a history of burden (debt).
Corrupt or incompetent politicians, companies, provisions, traitors.

But entering the Eurozone, 2000, was the BIG DEAL, with a little help from GS, 2000, TITLOS SPV, Olympic Games, Athens Stock Exchange - a big bubble.

Wed, 06/15/2011 - 16:54 | 1372587 Urban Redneck
Urban Redneck's picture

If the debt is odious- then there should be over $300 billion in receipts for hookers and blow for parliament, overseas palaces for the cabinet, and not hundreds of billions in receipts for salaries, pensions, and public works which benefit a significant portion of the population.  

Wed, 06/15/2011 - 17:42 | 1372685 allenaki
allenaki's picture

"receipts for hookers", do they give receipt for these services?

don't think so, but the parlamentarians are the Greek oligarchs (hundreds of houses, millions of euros in their bank accounts, no taxes, everything payed, cell telephones gratis, no costs, free Audis 12 cylinders etc.

Wait and you'll be surprised about the palasts and the skyscrapers..., the flotts, the off shore companies of the politicians, the briberys from multinational companies for state contracts.

wages for the public sector, no more than 22 bn. / year, not hundreds, this is misinformation.

I can provide you with data, but not now, it's night.

Wed, 06/15/2011 - 17:52 | 1372699 ggummm
ggummm's picture

Over 300 billion, correct. Actually there are 470 billion of them, m8...

Wed, 06/15/2011 - 14:05 | 1371891 shortus cynicus
shortus cynicus's picture

If we have odious debt, so what a role has the creditor played?

If debtor was guilty of wrongdoing, then creditor was his accomplice.

So the question is not about "if we pay back", but "how to issue international arrest warrants for creditor?" !!!

Wed, 06/15/2011 - 14:33 | 1372024 NotApplicable
NotApplicable's picture

Ha! I've been wanting to tell my in-laws for years how they were evil for buying Tresuries. Now I can tell them that there are those who advocate their arrest for this act of treason.

Wed, 06/15/2011 - 14:11 | 1371939 Lazane
Lazane's picture

in these times with a gooberment that is unaccountable for trillions in spending, sounds pretty odious to me. 

Wed, 06/15/2011 - 14:12 | 1371945 Peak Everything
Peak Everything's picture

Steve Keen taught me that debt used for asset speculation is odious and debt used to finance entreprenurial ideas is virtuous.

Wed, 06/15/2011 - 14:15 | 1371960 allenaki
allenaki's picture

Ηere:

http://allenaki.wordpress.com/2010/02/24/arguments-against-deb/

the long version of the above, in greek, translated from the german article, the first article about Odious Debt in the greek internet.

TITLE: GREEKS OF ALL NATIONS, UNITE.

(I apologize for phrasal mistakes of the above, etc, you may find, not a machine, "artificial" translation, never. Always human, handmade)

Wed, 06/15/2011 - 14:22 | 1371996 mudduck
mudduck's picture

Head-line; Bernack releases skid marked white paper on how to make odious debt or even real fresh poop smell good just by saying it does.

Wed, 06/15/2011 - 15:01 | 1372135 ike
ike's picture

And all debt when government (regime) borrow at the time when country is not under war threat or natural disaster can be considered as odious!

Wed, 06/15/2011 - 16:25 | 1372488 darkpool2
darkpool2's picture

so all we need is a bona fide "revolution", some swinging pols ( no, not the Weiner type), and bingo, legal debt repudiation. Tough one for Ben though, how do HE get to the other side......shit, who cares..... 

Wed, 06/15/2011 - 18:50 | 1372924 nmewn
nmewn's picture

"Such debts are thus considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion."

Now we're gettin somewhere.

Wed, 06/15/2011 - 21:07 | 1373203 haskelslocal
haskelslocal's picture

Get out of debt free card? Yeah. What's the point?  Obviously if you don't want to pay, well, don't.

Wed, 06/15/2011 - 22:09 | 1373312 Sambo
Sambo's picture

First thing to do: Throw out all those economics professors from schools especially the (poison) Ivy league ones

Second: Stop giving Nobel prize for economics

Third: Stop printing economics books....they destroy trees that give oxygen.

Thu, 06/16/2011 - 07:10 | 1373795 HangSorosHigh
HangSorosHigh's picture

I was the anon who stubbed out the odious debt article at Wikipedia all those years ago. Er, thanks for quoting me?

 

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