President Rafael Correa's decision to default on Ecuador's $3.9 billion debt to the IMF has got me thinking.
Correa announced this move last week, in response to the findings of a special commision, which he appointed himself. The commission recommended that Ecuador default on $3.9 billion in foreign commercial debts that are a result of the country restructuring in 2000.
The interesting thing about Correa defaulting is that he's not even doing it for financial reasons. In fact, right now, Ecuador could afford to make payment on the loan, thanks to their oil and agricultural exports. Instead, this default is ideologically motivated, a radical political stand. Correa says that the loans themselves are tainted by the corrupt policies and politics of the IMF and are thus "immoral."
Without a doubt, the politics of the IMF can be pretty atrocious, and I for one am glad to see a developing nation stand up to such a political giant, especially if it brings wider awareness to the history of the IMF in the process.
But, much more importantly, this new development opens up huge possibilities in the lives of poor recent-grads like myself. My whole life is loans! And yes, some of them are downright immoral. So, after much thought I have decided, in solidarity with the people of Ecuador, to refuse to repay those loans that are borne out of immoral or unjust intentions. That $5 my roomate lent me at the end of the night on Saturday for one more beer, just so that she could keep seeing me dance like a fool? IMMORAL. And what about when my sister lent me her credit card to buy those ugly suede boots with fringe? I was clearly not in my right mind. It was wrong, wrong, wrong of her to allow me to commit such a purchase. Why has she not let that one slide by now, anyway? That was months ago!
And so I shall refuse to make payment on these loans, no matter what the consequence shall be. I welcome all of my fellow Recessionistas to join me in this endeavor. We may come up against opposition. Our friends may refuse to go out with us, or maybe even to talk to us. Yes it will be a tough and harrowing journey, but we as Recessionistas are brave! We are courageous! And knowing that we are doing the right and moral thing is all that matters in the end. Now I just have to figure out exactly what it is that makes my college loans immoral...
Correa announced this move last week, in response to the findings of a special commision, which he appointed himself. The commission recommended that Ecuador default on $3.9 billion in foreign commercial debts that are a result of the country restructuring in 2000.
The interesting thing about Correa defaulting is that he's not even doing it for financial reasons. In fact, right now, Ecuador could afford to make payment on the loan, thanks to their oil and agricultural exports. Instead, this default is ideologically motivated, a radical political stand. Correa says that the loans themselves are tainted by the corrupt policies and politics of the IMF and are thus "immoral."
Without a doubt, the politics of the IMF can be pretty atrocious, and I for one am glad to see a developing nation stand up to such a political giant, especially if it brings wider awareness to the history of the IMF in the process.
But, much more importantly, this new development opens up huge possibilities in the lives of poor recent-grads like myself. My whole life is loans! And yes, some of them are downright immoral. So, after much thought I have decided, in solidarity with the people of Ecuador, to refuse to repay those loans that are borne out of immoral or unjust intentions. That $5 my roomate lent me at the end of the night on Saturday for one more beer, just so that she could keep seeing me dance like a fool? IMMORAL. And what about when my sister lent me her credit card to buy those ugly suede boots with fringe? I was clearly not in my right mind. It was wrong, wrong, wrong of her to allow me to commit such a purchase. Why has she not let that one slide by now, anyway? That was months ago!
And so I shall refuse to make payment on these loans, no matter what the consequence shall be. I welcome all of my fellow Recessionistas to join me in this endeavor. We may come up against opposition. Our friends may refuse to go out with us, or maybe even to talk to us. Yes it will be a tough and harrowing journey, but we as Recessionistas are brave! We are courageous! And knowing that we are doing the right and moral thing is all that matters in the end. Now I just have to figure out exactly what it is that makes my college loans immoral...
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