I think there was a pundit in The Times who said the west should collectively default on debt if the Chinese won't agree to mark it down.
Originally Posted by: Brian Gaze
Indeed there was - I posted a link to the article last week. If I can find it again, I shall repost below.
Here it is:
https://www.thetimes.co.uk/article/china-should-write-off-debts-to-cover-the-cost-of-covid-19-vmzh7hprp
"Despite Beijing’s determined efforts, a comprehensive timeline has now emerged of the response of the authorities in Hubei province and in Beijing to the spread of the Covid-19 virus, proving that the Chinese authorities engaged in a cover-up in the critical early days. This makes them morally responsible for the global consequences of the pandemic in at least some key ways.
...
But Chinese ownership of sovereign debt is even more widespread than the virus. Italy owes China money, Spain does, everyone does. We should engage with Beijing to persuade them to waive the debts equivalent to the cost incurred by state budgets to handle the epidemic.
And if Beijing fails to heed this call, then it should be for the international community to come together and proclaim a proportional default on debts to China to pay for the fallout from Covid-19. By this agreement, perhaps underwritten by the IMF and the World Bank, we would proclaim than any such default would not hamper a country’s ability to seek credit on the open markets of the West.
Beijing has a moral obligation to forgive these debts. If it fails to do so, the rest of the world has a moral right to default. We may not have the capacity to force this on to China. But we do have the capacity, and the duty, to facilitate a co-ordinated default if it does not comply.
Dr Azeem Ibrahim is a director at the Center for Global Policy, Washington DC"
Edited by user
03 April 2020 09:51:14
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Reason: Not specified