The excessive lending by banks in the 1980’s had been the bait, and their catch was the gains they made through bankruptcies and sales of national assets. As these profitable bankruptcies cleared away the immediate economic chaos, the banks resumed more moderate policies of lending.
While governments had no choice but to float their currencies, doing so was just a short-term fix rather than a long-term solution. In the new economy if countries did not join in and deregulate their currencies (and economies) they became sitting ducks for global money speculators, foremost among which are multinational banks. The floating of national currencies was an inevitable result of the US severance from regulated currency. It was an offer to weaker economies that could not be refused - either join the club of globalised currency or be clubbed by globalised currency. The floating of currencies partly addressed the threat from global money speculators, but it did not fix the fault in the global monetary system, which continues to hamstring national economies through debt.
Foreign debt is largely a misnomer. The debt is foreign in the sense that it is not owed within the same country and its economy. The word foreign implies that the debt is owed to another country. These days that is not entirely the case either, because most countries on Earth have excessive foreign debts. Foreign debt is mostly owed to multinational banks, which have no loyalties to any nations and are in the business of creating debt.
Privatisation and deregulation also ignore the fact that debt growth outpaces economic growth in the post-1970's global money system. Just as private debts had bankrupted citizens and companies through the 1980’s and 1990’s, debts are now preparing to bankrupt whole countries in one go.
Privatised and deregulated national economies have allowed multinationals to take control over the business, infrastructures and economies that run countries and shape their futures. In reality, the world is really run by an oligarchy of global corporations. After deregulation, national governments just take care of lesser, more trivial tasks that still need doing, like building roads and taxing the nation. A country's economic destiny is dictated to it and life for everyday citizens falls into line accordingly. Meanwhile, nobody is meant to notice that their nation is steadily marching towards a precipice of debt.