Nation states can now default on international debts
Evidence
But, by the same token, we now see that it is also possible for nation states (South Africa, Peru, Brazil, etc.) to default on their international financial obligations, forcing inter-state negotiations on debt repayments. It is also, I suspect, no accident that the first economic summit between the major capitalist powers occurred in 1975, and that the pursuit of international co-ordinations - either through the IMF or through the pursuit of collective agreements to 170 Political-economic capitalist transformation intervene in currency markets - has intensified ever since, becoming even more emphatic in the wake of the 1987 stock market crash. — David Harvey, The Condition of Postmodernity, 1035
Categorization
- QUESTION: The excerpt cuts off mid-sentence about the first economic summit and its date — worth chasing down whether Harvey ties this to the 1970s debt crises as a periodization marker.
- XREF: connects to: A sovereign currency makes a state incapable of defaulting on its own obligations; Indebted states now answer to transnational currency and stock markets — Max Haiven, Cultures of Financialization, 495