Sentences with phrase «buy government debt»

It could launch another trillion - plus - dollar program to buy government debt or mortgage securities like it did when it was battling the recession and financial crisis.

Borrowing figures have soared ever higher over the last few months, as the interest rate rose above nine per cent and several Portuguese banks warned they could no longer buy government debt.

With these deposits the banks were able to buy government debt.

The unspoken quid pro quo — that banks need to buy government debt in exchange for the central bank's largess — seems to be working.

That's over 100 % of projected GDP, well into the danger zone where investors demand higher rates to buy government debt.

Which means investors buying this government debt are willing to pay the government for the privilege even if that government is fiscally in worse shape than Greece!

Fabricated funds went toward subsidizing the private banking system and buying government debt, corporate debt, and stocks.

My guess is that in the April / May time frame the rates on USTs will start to rise as the government must find new customers and the FED will hopefully have stopped buying government debt thus slowing down their money printing (this is not a sure thing, however).

Not exact matches

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.

A related question I sometimes hear — which bears also on the relationship between monetary and fiscal policy, is this: By buying securities, are you «monetizing the debt» — printing money for the government to use — and will that inevitably lead to higher inflation?

On Monday, the yen slid towards 99 per dollar, its lowest in nearly four years, as markets prepared for the BOJ to start buying about 70 percent of debt issued by the government.

The interest rate on 10 - year bonds was 1.79 % at the end of 2014 — about half as much as the federal government had to offer to get investors to buy its debt a decade ago.

There were a few dissents, but a majority of the Monetary Policy Committee also opted to create # 60 billion (about $ 100 billion) to buy government bonds over the next six months and # 10 billion to purchase corporate debt over 18 months.

For years, investors in U.S. stocks shrugged off threats — a government shutdown, fear of a euro collapse, a near U.S. debt default — and just kept on buying.

Even with hedge funds vanishing from the agenda, debt relief advocacy group Jubilee South called on the G - 8 governments to protect poorer countries from vulture funds, or investors who buy up debt at rock - bottom prices and then sue for the full value.

Chris Hurt, a professor of agricultural economics at Purdue University in West Lafayette, Ind., said in a recent presentation that the U.S. Federal Reserve's quantitative easing (that is, the practice of issuing money to buy long - term government debt) likely elevated U.S. farmland prices.

When taxing capacity falls short of financial commitments, central banks usually end up printing money to buy up government debt.

Until recently, the main valve had been buying foreign government debt, particularly U.S. Treasuries.

Ryan Avent pointed out that even if we enacted Trump's massive tax cuts and spending increaes, adding $ 34 trillion in new debt over the next two decades, our ratio of debt to GDP two decades from now would still be 30 percentage points less than Japan's government debt ratio is right now... and the market is still buying their negative interest rate long term debt...

«The central banks» plans for printing money to buy bonds from national governments running huge deficits can not be considered a long - term solution to debt problems.»

Banks «earned their way out of debt» by lending to global speculators who used the yen loans to convert into foreign currency and buy higher - yielding assets abroad — capped by Icelandic government bonds paying 15 %, and pocketing the arbitrage difference.

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.

Various quantitative - easing options focused on government bonds were shown to governors on Jan. 7 in Frankfurt, including buying only AAA - rated debt or bonds rated at least BBB minus, the euro - area central bank official said.

They rant against debt but continue to buy government notes or leave cash in the bank at 1 % interest.»

Students in every mainstream macroeconomics class, and that means almost all students, would have predicted, based on the nonsense they were learning, that the high deficits and high public debt ratios in Japan at the time, should have driven interest rates sky high, that bond markets should have stopped buying government bonds, that the government should have run out of money, and all the time that these disasters were unfolding, that inflation should have been be galloping towards hyperinflation.

It will buy $ 600 billion worth of US long - term bonds in the open market, close to 7 % of all Treasury securities in public hands, or about the amount the debt that the federal government will issue over that time period.

In addition to its program to buy mortgage - backed debt, the Fed has been using proceeds from short - term government securities to buy longer - term ones.

We have government debt, corporate debt, and a much larger Fed balance sheet (which, some people argue, drove bond buying by the public), but those are offset by a significant deleveraging in household and financial sector debt.

The bank would create new euros and use the money to buy assets on the market, largely government debt.

The central bought all those bad loans and government debt with made up money over the last decade, but now, they want to market it to the private sector.

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.

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.

This would block the government from paying foreign bankers and the vulture funds that have been buying up Greek debt at a deepening discount.

During the next crisis the Fed will buy $ trillions in debt to «fund» U.S. government budget deficits.

-- In 2008, Florida's government - run property insurer paid Warren Buffett $ 224 million to agree to buy its debt if a major storm struck.

That naturally led a lot of people to want to buy it, giving the government a reason to take out lots of debt.

Republicans have accused Bernanke of subsidizing the nation's borrowing binge by buying more than a trillion dollars in U.S. government debt since 2008 — a position he has rejected.

Governments can also buy long - term bonds while selling off long - term debt to help influence the yield curve.

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.

Fannie Mae, the government - sponsored corporation that buys home loans from lenders, announced in 2017 that they would start allowing higher debt - to - income limits for borrowers.

In a recent article, we explained that Fannie Mae (one of the government - sponsored enterprises that buy mortgage loans from lenders) recently raised its debt - to - income ratio limit for conventional home loans.

The justification from the government of such a deal was that the price of such loans will increase — reflecting the risk of holding such debt over time — which should create an incentive to buy further NPLs.

The drug lords have also bought limited public acceptance by sponsoring the national soccer league, diversifying into legitimate businesses, supporting charities and offering to pay off the government's $ 10 billion external debt.

FTSE only rallying because of hedge funds playing games, government QE, stockmarket racketeering, companies (esp banks) issuing debt and buying back stock.

Our government is borrowing 35 cents of each dollar it spends, leaving a debt our grandchildren won't be able to pay off, to buy votes for incumbents through entitlement programs.

The debt goes to whoever buys the bonds, and the US government either pays up when bond holders redeem their bonds or it doesn't.

It absolutely IS done to finance the debt (through the mechanism of buying government bonds with new cash).

This is how it works: Amid the European economic crisis, you buy up cheap sovereign bonds of government debt, sold at a discount.

Also, the BOJ bought only government debt until mid-2002, whereas the Bank of England will purchase corporate assets as part of its strategy.

In fact we now know that America will borrow trillions more from China, burdening our children with that debt for decades... just so Pubs could give huge tax breaks to the Pub donor class — who have bought our government since the Citizens United decision.