Why Are The People Forced To Foot The Bill for Unguaranteed Bondholders.
Channel: Disillusioned
Date: 2013-12-19

Odious debt
In international law, odious debt, also known as illegitimate debt, is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts  invalidity.