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Vulture Funds Feed on the Global Poor

by Hayley Hathaway 12-07-2009 | 3:00pm
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Liberia is the most recent country to fall into the talons of a "vulture fund." Last week, British courts ruled that Liberia has to pay $20 million to two vulture funds, Wall Capital Ltd. and Hamsah Investments, for a debt that dates back to 1978.

Vulture funds are private companies that buy up impoverished countries' old debt, usually for pennies on the dollar. They wait until a country receives international cancellation of its other debts

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by: nuclearferret

12-09-2009 @ 4:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

by: myselfandi

12-07-2009 @ 5:20pm

Jim Wallace is an obama buddy, why not send him with sojourners backing to pressure obama to actually do something with our money worth while.

by: Ngchen

12-07-2009 @ 5:27pm

Come to think of it, what is the status on the international law norm of "odious debt?" Odious debt is debt contracted in the name of a state, but used for the betterment of its ruling despots. The proposed norm would make odious debts unenforceable, making lenders wary of lending to despots to begin with. It seems like a good portion of Liberia's debts would fall into this category.

by: pawheel

12-07-2009 @ 5:30pm

Anyone who wants to can click on the Jubilee USA Network link at the bottom of the article to sign the Pettition to let Congress know you want the bill passed.

by: hayleyhathaway

12-07-2009 @ 5:50pm

Thanks, Ngchen, for your good question. Currently the problem is that there isn't an international body or structure to determine what is or isn't an "odious" or "illegitimate." UNCTAD is starting to do some interesting work on this. Check out Jubilee USA's recent blog to learn more. http://jubileeusa.typepad.com/blog_the_debt/200...

by: MJ1

12-07-2009 @ 6:12pm

A lie? Are you a scientist? How long have you studied Global Warming?? Are you a member of the AAAS? How about the NAS? Give me a reason why we should believe you and not the scientists that have been studying this for years. By the way, Fox news is NOT a good reason

by: JacobS

12-07-2009 @ 7:43pm

What empowers British and American courts to enforce rulings against a sovereign nation?

by: myselfandi

12-07-2009 @ 11:43pm

see ( ) my opinion. the emails brought too light dont help. John holdren our science czar said 30 year ago we were heading to a global cooling. Now surprise he all for global warming. the numbers were fixed didnt fit the actual data. etc etc. Of course thats not my point. there are far more important problems to deal with, especially in light of the emails showing there dishonesty. At least Fox news tells us the news. ALL the news. And i dont have cable so i dont watch them. Besides the U.N. is more corrupt then our administration and our wall street etc etc combined. Nothing good will come of it. Cap and Tax will hurt the poor not one who is for it has proven otherwise, its a joke.

by: BlueDeacon

12-08-2009 @ 2:04pm

At least Fox news tells us the news.

I'm in the media, and I know for a fact that such a statement is a bunch of hooey.

by: Judith Vargo

12-08-2009 @ 5:23pm

If every American would chip in 67 cents, it would pay off Liberia's debt.

Where do I sent my 67 cents?

by: myselfandi

12-07-2009 @ 5:20pm

Jim Wallace is an obama buddy, why not send him with sojourners backing to pressure obama to actually do something with our money worth while.

by: Ngchen

12-07-2009 @ 5:27pm

Come to think of it, what is the status on the international law norm of "odious debt?" Odious debt is debt contracted in the name of a state, but used for the betterment of its ruling despots. The proposed norm would make odious debts unenforceable, making lenders wary of lending to despots to begin with. It seems like a good portion of Liberia's debts would fall into this category.

by: pawheel

12-08-2009 @ 5:37pm

The World bank and International monetary fund were mainly funded in the past by the U.S. and we provided most of the administrators if I have it right. I remember when the Bush 2 administration put Paul Wolfowitz in a high level position at either the World Bank or the IMF. Those 2 organizations were largely responsible for loans to a lot of struggling countries in the last few decades.
There was a book written by a man who was one of the lead guys in assisting those countries get their loans. His book was titled
"Confessions of an Economic Hitman", but I have forgotten his name. I think he has written more since then. His first book clearly spelled out how some of these loans were impossible to pay back, and not necessarily in the best interest of the nation taking out the loan.

by: pawheel

12-07-2009 @ 5:30pm

Anyone who wants to can click on the Jubilee USA Network link at the bottom of the article to sign the Pettition to let Congress know you want the bill passed.

by: hayleyhathaway

12-07-2009 @ 5:50pm

Thanks, Ngchen, for your good question. Currently the problem is that there isn't an international body or structure to determine what is or isn't an "odious" or "illegitimate." UNCTAD is starting to do some interesting work on this. Check out Jubilee USA's recent blog to learn more. http://jubileeusa.typepad.com/blog_the_debt/200...

by: SisterMarie

12-08-2009 @ 7:04pm

MJ1,

Please don't fall into the trap of responding to ****** people and especially to ********.

by: MJ1

12-07-2009 @ 6:12pm

A lie? Are you a scientist? How long have you studied Global Warming?? Are you a member of the AAAS? How about the NAS? Give me a reason why we should believe you and not the scientists that have been studying this for years. By the way, Fox news is NOT a good reason

by: xnlover

12-08-2009 @ 8:58pm

"Confessions of an Economic Hitman" is by John Perkins. Here's the link to the Amazon.com page: http://www.amazon.com/Confessions-Economic-HitM...

by: JacobS

12-07-2009 @ 7:43pm

What empowers British and American courts to enforce rulings against a sovereign nation?

by: myselfandi

12-07-2009 @ 11:43pm

see ( ) my opinion. the emails brought too light dont help. John holdren our science czar said 30 year ago we were heading to a global cooling. Now surprise he all for global warming. the numbers were fixed didnt fit the actual data. etc etc. Of course thats not my point. there are far more important problems to deal with, especially in light of the emails showing there dishonesty. At least Fox news tells us the news. ALL the news. And i dont have cable so i dont watch them. Besides the U.N. is more corrupt then our administration and our wall street etc etc combined. Nothing good will come of it. Cap and Tax will hurt the poor not one who is for it has proven otherwise, its a joke.

by: BlueDeacon

12-08-2009 @ 2:04pm

At least Fox news tells us the news.

I'm in the media, and I know for a fact that such a statement is a bunch of hooey.

by: Judith Vargo

12-08-2009 @ 5:23pm

If every American would chip in 67 cents, it would pay off Liberia's debt.

Where do I sent my 67 cents?

by: pawheel

12-08-2009 @ 5:37pm

The World bank and International monetary fund were mainly funded in the past by the U.S. and we provided most of the administrators if I have it right. I remember when the Bush 2 administration put Paul Wolfowitz in a high level position at either the World Bank or the IMF. Those 2 organizations were largely responsible for loans to a lot of struggling countries in the last few decades.
There was a book written by a man who was one of the lead guys in assisting those countries get their loans. His book was titled
"Confessions of an Economic Hitman", but I have forgotten his name. I think he has written more since then. His first book clearly spelled out how some of these loans were impossible to pay back, and not necessarily in the best interest of the nation taking out the loan.

by: SisterMarie

12-08-2009 @ 7:04pm

MJ1,

Please don't fall into the trap of responding to ****** people and especially to ********.

by: xnlover

12-08-2009 @ 8:58pm

"Confessions of an Economic Hitman" is by John Perkins. Here's the link to the Amazon.com page: http://www.amazon.com/Confessions-Economic-HitM...

by: nuclearferret

12-09-2009 @ 2:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

by: nuclearferret

12-09-2009 @ 4:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

by: nuclearferret

12-09-2009 @ 2:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

Comments sorted by highest rated. After voting you must refresh your page to see the sort order change.

by: myselfandi

12-07-2009 @ 5:20pm

Jim Wallace is an obama buddy, why not send him with sojourners backing to pressure obama to actually do something with our money worth while.

by: myselfandi

12-07-2009 @ 5:20pm

Jim Wallace is an obama buddy, why not send him with sojourners backing to pressure obama to actually do something with our money worth while.

by: Ngchen

12-07-2009 @ 5:27pm

Come to think of it, what is the status on the international law norm of "odious debt?" Odious debt is debt contracted in the name of a state, but used for the betterment of its ruling despots. The proposed norm would make odious debts unenforceable, making lenders wary of lending to despots to begin with. It seems like a good portion of Liberia's debts would fall into this category.

by: Ngchen

12-07-2009 @ 5:27pm

Come to think of it, what is the status on the international law norm of "odious debt?" Odious debt is debt contracted in the name of a state, but used for the betterment of its ruling despots. The proposed norm would make odious debts unenforceable, making lenders wary of lending to despots to begin with. It seems like a good portion of Liberia's debts would fall into this category.

by: pawheel

12-07-2009 @ 5:30pm

Anyone who wants to can click on the Jubilee USA Network link at the bottom of the article to sign the Pettition to let Congress know you want the bill passed.

by: pawheel

12-07-2009 @ 5:30pm

Anyone who wants to can click on the Jubilee USA Network link at the bottom of the article to sign the Pettition to let Congress know you want the bill passed.

by: hayleyhathaway

12-07-2009 @ 5:50pm

Thanks, Ngchen, for your good question. Currently the problem is that there isn't an international body or structure to determine what is or isn't an "odious" or "illegitimate." UNCTAD is starting to do some interesting work on this. Check out Jubilee USA's recent blog to learn more. http://jubileeusa.typepad.com/blog_the_debt/200...

by: hayleyhathaway

12-07-2009 @ 5:50pm

Thanks, Ngchen, for your good question. Currently the problem is that there isn't an international body or structure to determine what is or isn't an "odious" or "illegitimate." UNCTAD is starting to do some interesting work on this. Check out Jubilee USA's recent blog to learn more. http://jubileeusa.typepad.com/blog_the_debt/200...

by: MJ1

12-07-2009 @ 6:12pm

A lie? Are you a scientist? How long have you studied Global Warming?? Are you a member of the AAAS? How about the NAS? Give me a reason why we should believe you and not the scientists that have been studying this for years. By the way, Fox news is NOT a good reason

by: MJ1

12-07-2009 @ 6:12pm

A lie? Are you a scientist? How long have you studied Global Warming?? Are you a member of the AAAS? How about the NAS? Give me a reason why we should believe you and not the scientists that have been studying this for years. By the way, Fox news is NOT a good reason

by: JacobS

12-07-2009 @ 7:43pm

What empowers British and American courts to enforce rulings against a sovereign nation?

by: JacobS

12-07-2009 @ 7:43pm

What empowers British and American courts to enforce rulings against a sovereign nation?

by: myselfandi

12-07-2009 @ 11:43pm

see ( ) my opinion. the emails brought too light dont help. John holdren our science czar said 30 year ago we were heading to a global cooling. Now surprise he all for global warming. the numbers were fixed didnt fit the actual data. etc etc. Of course thats not my point. there are far more important problems to deal with, especially in light of the emails showing there dishonesty. At least Fox news tells us the news. ALL the news. And i dont have cable so i dont watch them. Besides the U.N. is more corrupt then our administration and our wall street etc etc combined. Nothing good will come of it. Cap and Tax will hurt the poor not one who is for it has proven otherwise, its a joke.

by: myselfandi

12-07-2009 @ 11:43pm

see ( ) my opinion. the emails brought too light dont help. John holdren our science czar said 30 year ago we were heading to a global cooling. Now surprise he all for global warming. the numbers were fixed didnt fit the actual data. etc etc. Of course thats not my point. there are far more important problems to deal with, especially in light of the emails showing there dishonesty. At least Fox news tells us the news. ALL the news. And i dont have cable so i dont watch them. Besides the U.N. is more corrupt then our administration and our wall street etc etc combined. Nothing good will come of it. Cap and Tax will hurt the poor not one who is for it has proven otherwise, its a joke.

by: BlueDeacon

12-08-2009 @ 2:04pm

At least Fox news tells us the news.

I'm in the media, and I know for a fact that such a statement is a bunch of hooey.

by: BlueDeacon

12-08-2009 @ 2:04pm

At least Fox news tells us the news.

I'm in the media, and I know for a fact that such a statement is a bunch of hooey.

by: Judith Vargo

12-08-2009 @ 5:23pm

If every American would chip in 67 cents, it would pay off Liberia's debt.

Where do I sent my 67 cents?

by: Judith Vargo

12-08-2009 @ 5:23pm

If every American would chip in 67 cents, it would pay off Liberia's debt.

Where do I sent my 67 cents?

by: pawheel

12-08-2009 @ 5:37pm

The World bank and International monetary fund were mainly funded in the past by the U.S. and we provided most of the administrators if I have it right. I remember when the Bush 2 administration put Paul Wolfowitz in a high level position at either the World Bank or the IMF. Those 2 organizations were largely responsible for loans to a lot of struggling countries in the last few decades.
There was a book written by a man who was one of the lead guys in assisting those countries get their loans. His book was titled
"Confessions of an Economic Hitman", but I have forgotten his name. I think he has written more since then. His first book clearly spelled out how some of these loans were impossible to pay back, and not necessarily in the best interest of the nation taking out the loan.

by: pawheel

12-08-2009 @ 5:37pm

The World bank and International monetary fund were mainly funded in the past by the U.S. and we provided most of the administrators if I have it right. I remember when the Bush 2 administration put Paul Wolfowitz in a high level position at either the World Bank or the IMF. Those 2 organizations were largely responsible for loans to a lot of struggling countries in the last few decades.
There was a book written by a man who was one of the lead guys in assisting those countries get their loans. His book was titled
"Confessions of an Economic Hitman", but I have forgotten his name. I think he has written more since then. His first book clearly spelled out how some of these loans were impossible to pay back, and not necessarily in the best interest of the nation taking out the loan.

by: SisterMarie

12-08-2009 @ 7:04pm

MJ1,

Please don't fall into the trap of responding to ****** people and especially to ********.

by: SisterMarie

12-08-2009 @ 7:04pm

MJ1,

Please don't fall into the trap of responding to ****** people and especially to ********.

by: xnlover

12-08-2009 @ 8:58pm

"Confessions of an Economic Hitman" is by John Perkins. Here's the link to the Amazon.com page: http://www.amazon.com/Confessions-Economic-HitM...

by: xnlover

12-08-2009 @ 8:58pm

"Confessions of an Economic Hitman" is by John Perkins. Here's the link to the Amazon.com page: http://www.amazon.com/Confessions-Economic-HitM...

by: nuclearferret

12-09-2009 @ 2:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

by: nuclearferret

12-09-2009 @ 2:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

by: nuclearferret

12-09-2009 @ 4:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.

by: nuclearferret

12-09-2009 @ 4:45pm

Why give countries like Liberia a "loan" in the first place? Buy up their assets and own them like the US is experiencing. The loans weren't going to be repaid anyway, and everyone knew that, so just eat the debt and move on.