Sentences with phrase «so government debt»

So government debt is increased by giveaways to the banks, not by spending into the «real» economy.

Not exact matches

He then turns to a related point, which is that the Fed is somehow «monetizing the debt» — printing money so that the government doesn't have to legitimately pay off its obligations.

So freezing the debt limit doesn't «take away the government's credit card.»

The outlook could be stabilized if the government's commitment to fiscal consolidation and debt reduction or its capacity to do so was to wane,» the agency added in the same note.

If the Fed were monetizing the debt, then it would rip up the Treasuries it buys, so that the government doesn't have to pay them off.

Macron has said he hopes to pool liability for various kinds of debt: a completed banking union would ensure bailout costs for individual financial institutions would be distributed across the continent rather than borne by individual countries, and the so - called Eurobonds would allow national governments to borrow money against a joint continental credit rating.

Corporate debt in China exceeds 250 % of gross domestic product, and the government has put restrictions on international investment because the value of the yuan was falling so fast.

The first group of so - called debt hawks sees another Great Recession coming and wants national governments to focus on austerity programs aimed at deficit reduction because rising sovereign debts are behind our current economic woes.

Part of what has supported this recovery since the crisis has been fiscal policy, so we have much higher government debt than we had before, where is the room for governments to do fiscal expansion in a renewed downturn?

Just as our Government manages debt, so too is it tackling spending.

So the debts ultimately either are paid by the government, or they're paid by a huge transfer of property from debtors to creditors — or, the debts are written off.

To do so, you also need Gross Domestic Balance Sheet, or at least Total Domestic Debt from all sectors (households, companies, government).

The tense negotiations over Greece's debt come as the Greek government struggles to find a consensus to pass the budget reforms demanded by its so - called troika of lenders — the European Central Bank, European Union and International Monetary Fund — in exchange for releasing the next installment of bailout money, a 30 billion euro ($ 38.3 billion) payout scheduled to be released in March.

Talks hit a snag between the new Greek government and the banks and other private investors that Athens hopes will agree to take losses on their debt so that Greece can avoid a default.

A collection agency, whether through the US government or private lender, won't usually settle a defaulted student loan debt if it's less than the amount that the lender is likely to receive over the life of the original loan — so negotiation is essential during settlement talks.

First, it can simply transfer debt directly onto the government balance sheet so as to clean up banks, SOEs and local governments, thus preventing financial distress costs from causing Chinese growth to collapse.

While opposition concerns around Alberta's debt sustainability are misleading, the government's claims around spending growth are equally so

The only variables he admits are structure - free: The federal government can indeed spend more and reduce interest rates (especially on mortgages) so that the higher mortgage debt, student debt, personal debt and corporate debt overhead can be afforded more easily.

There are so many reasons why this is wrong (to list just the most obvious, poor countries have much lower debt thresholds than rich countries, Japanese debt can not possibly be dismissed as not being a problem, and because it is almost impossible to find an economist who understands the relationship between nominal interest rates and implicit amortization, Japanese government debt has probably only been manageable to date because GDP growth close to zero has permitted interest rates close to zero) and yet inane comparisons between China's debt burden and Japan's debt burden are made all the time.

But closing down unnecessary capacity can pay for itself, even if unemployed workers are temporarily put on the government payroll (causing debt to rise, but usually by less than it had before), but only temporarily as Beijing takes other measures to boost household income through wealth transfers from the state and so to boost consumption, a form of demand which is likely to be more labor intensive than the demand created in the process of over-capacity.

Full employment via public jobs is a great thing; but, oh, it is so blatantly obvious that debt - free money creation by the government is absolutely censored on both the right and the so - called left to protect the commercial - banking cartel.

Debt has surged in local governments and SOEs.

Assuming that the total amount of bad debt in the banking system exceeds total bank capital — something which is almost certainly true — the conversion of debt which can not be serviced into an equity position that is unlikely to generate much more (and in an economic downturn, which is when we are most concerned about the debt burden, we can assume that the decline in value of these equity positions will be highly correlated) leaves the net indebtedness of the banking system unchanged, and so the contingent liabilities of the government are unchanged even as reported debt in the system declines.

The job growth is fake, there's been no wage growth since 1999, inflation numbers are false, government debt is too high, corporate profits are too low, corporate profits are unsustainably high, companies aren't reinvesting their profits, companies are buying back too much stock, the Federal Reserve is propping up the market, the Federal Reserve is keeping rates artificially low, and so on.

Cutting back government spending will reduce private - sector income, making it even harder to carry the corporate, real estate and personal debt overhead, so the debt problem will snowball.

In the late 1940s through the early 1970s, the U.S. and UK both reduced their debt burden by about 30 % to 40 % of GDP per decade by taking advantage of negative real interest rates, but there is no guarantee that government debt rates will continue to stay so low.

http://www.progressive-economics.ca/2009/11/10/public-sector-workers-the-recessions-next-victims/ This battle will, of course, be fought by right wing (and perhaps not so right wing) governments in the name of «fiscal responsibility», and justified with reference to the imperative need for «exit strategies» from Great Recession deficits and debt accumulation.

The interviewer asked (we are paraphrasing) whether the magnate thought it «fair» that this was so, and if he wasn't troubled by his conscience in light of the Greek government debt crisis.

The bottom line is that it's not so much the Fed's interest - rate suppression that benefits the US government, it's the fact that the interest - rate suppression is conducted via the large - scale accumulation of the government's debt.

Newly minted Prime Minister Alexis Tsipras campaigned on the promise of seeking a write - down on the country's debt, a «haircut» so to speak, which many European finance and government officials have dismissed as out of the question.

Yet by setting yields so low and bond prices so high, markets are sending a clear signal that they want more, not less, government debt.

Today money is debt, so when a person, company or a government has a debt, they are in fact promising to pay back a debt with more debt.

First, the debt ceiling will expire around election time, so the government will face another shutdown and it will be politically brutal to assemble a majority in a lame duck session to raise it by the trillions that will be needed.

Even so, the rate of debt accumulation — for government, corporations and households — has materially slowed, suggesting that the worst of deleveraging headwinds are behind us.

Achieving the coveted AAA rating is possible for those who issue debt, whether business or government, and doing so can make the difference in terms of financial stability and viability.

This puts central banks in a position where they will have attempt to control interest rates not by discounting lending, but by buying debt from the government directly, so that markets don't price the new issuance at a level that would destroy the nation's ability to service a debt load that is growing larger all the time.

As someone already postulated, the world is awash in so much debt that governments would be hard pressed to figure whom to bail out.

So far, September 2016 has been touted as the taper date for QE, but Soc Gen think the ECB may have to venture into buying lower - rated government debt and even corporate debt if growth and prices continue to disappoint.

And so for example, if you look at U.S. government debt, which is the one almost everyone always talks about, most people aren't sitting there worrying about how much debt does Amazon have, when you look at government debt, interest payments on government debt as a percent of GDP or as a percent of tax revenue, currently because interest rates are relatively low, are very low, are running half, literally half of what they were in the second half of the»80s and the first half of the»90s.

So as the safe haven appeal of government debt reduces while the overall quality of corporate credit improves, it's logical for high - yield credit spreads to tighten.

Since Congress has, so far, not acted we are now on the precipice of a much more uncertain and chaotic situation in which Puerto Rico will attempt to selectively cancel debts and bondholders will seek to use the federal courts to block the Puerto Rican government from operating until it pays up.

So, the government encourages spending by giving you tax breaks on debt (i.e. mortgage interest deduction, student loan interest deduction), but they tax you for savings (i.e. capital gains, interest income, etc..)

By buying government (or agency) debt, and paying banks to hoard the reserves it creates by doing so, the Fed shunts a bigger share of the public's savings into the Fed's coffers, and from there to government or its agents.

He gives a large percentage of his salary back to the government so they can repay their debt.

But to the extent that it ignores the finger Lincoln points at the Civil War — to the extent that it forgets the decimation of a generation of young Americans at the beginnings of manhood; to the extent that it forgets the windrows of corpses at Shiloh, the odor of death in the Wilderness, the walking skeletons of Andersonville, 623,000 dead all told, not to mention the interminable list of those crippled, orphaned, and widowed whose pensions became the single largest bill paid by the federal government for the following half - century; to the extent that it ignores how the war cost the United States $ 6.6 billion, rocketed the national debt from $ 65 million to $ 2.7 billion, retarded commodity growth for the next thirty years, and devalued its currency — then the call for reparations opens itself up to a charge of willful forgetfulness so massive that resentment, anger, and bitterness, rather than justice, will (I fear) be its real legacy.

At present this depends on the willingness of the poor in developing countries to sacrifice so that their governments can pay on their international debts.

They say what they feel they must say to get our support when they want our support, but on so many issues - on modernising our politics, on the recall of MPs, on controlling our borders on less government, on bank reform, on cutting public debt, on an EU referendum - they never actually make it happen.»

When the ceiling is then reached, legislators rationally vote to increase the debt ceiling so that the national government doesn't go into default.

Mr. Speaker, almost two - years into the implementation of the Energy Sector Levies Act, 2015 (Act 899), Government is successfully executingmechanisms to streamline the operations of SOEs and make them financially viable.The ESLA has contributed to paying VRA and TORs debt owed to banks and trade creditors to the tune of GH cents 1.9 billion.

If needed, the Federal Reserve can issue as many new dollars as it likes, so the USA can not fail to pay its debt (unless its government chooses to default).