the American and Russian war machines support each other
How would debt cancellation cause democracy to increase? It seems to be that in the absence of certain cultural+political structures, money strengthens autocracy. The money from those debts, in many cases, did little but line the pockets of dictators.
China's a great example. They've become rich, and many commentators thought that meant they'd adopt liberal democracy. If anything, they're sinking further into totalitarianism.