After writing my last blog (to which no one seems to read or respond to), I thought more about my very brief idea of using the U.S. economic stimulus to relieve the US$51 trillion of external debt. I was thinking about the rational ignorance and avarice of the government bureaucrats and hedge fund managers that hold most of this debt of the Third World. Here's a compromise worth thinking about: first, recalculate the debt in terms of the currency in the country that received it and recalculate the payments against the debt in these terms -- and adjust for inflation, and if necessary, intentional revaluations of the currency. I have no idea what this would look like, but it seems to me that this kind of debt relief may allow a reasonable (and honest) return on investment for those investing while allowing debtor-nations to re-evaluate each national economy's relationship to external debt.
Of course, this idea looks as unlikely as my first idea. The elite, who live on the surplus value they extract by appearing as receiver of the monies from the outside world and the "giver" of the monies from the inside world, would not lose any surplus value in this re-equation since the original value of the loan does not change. In fact, spending less money of debt service without lowering government revenue would provide more opportunities for elite to line their pockets by skimming. Yet, the elite are not in favor of this, almost anywhere. Now, that's what I call real utang na loob for the wealthy countries.