Starts specifically dealing with the Third World Debt crisis from here.
-Most of the loans were taken out by unelected dictators who put the money in their swiss bank accounts, and now the banks were trying to collect not from them/their children but “by literally taking food from the mouths of hungry children”
-They had repaid the debts many times over, but interest meant they hadn’t even touched the principal
-Banks were making major free-market economic policy demands in exchange for re-financing, and “it was a bit dishonest to insist that countries adopt democratic constitutions and then also insist that, whoever gets elected, they have no control over their country’s policies anyway”
Then he gets more general, pointing out that forcing banks to take on risk when they lend keeps them from making crazy loans knowing they can extort the borrower if he can’t repay.
“Imagine there was soem law that said they were guaranteed to get their money back no matter what happens, even if that meant, I don’t know, selling my daughter into slavery or harvesting my organs or something. Well, in that case, why not? Why bother waiting for someone to walk in who has a viable plan to set up a laundromat or some such? Basically, that’s the situation the IMF created on a global level– which is how you could have all those banks willing to fork over billions of dollars to a bunch of obvious crooks in the first place.”