Government debt refers to the amount of money that a government owes to individuals, organizations, or other countries. It occurs when a government spends more money than it collects in taxes and other revenue sources. The government then borrows money by issuing bonds or taking loans to meet its expenses. This debt needs to be repaid with interest over time. Governments often use borrowed funds for important projects, such as infrastructure development or social welfare programs.
Full definition
Here are some examples
of government debt relief programs and what you need to know about them.
Regardless what returns are added on top, if the rate
on government debt changes, so too will the rate for other securities.
You should first talk to a reputable financial planner before applying
for government debt relief programs.
Banks can take funds borrowed at zero interest, and
buy government debt at even one percent interest or even lower, and make money — with (virtually) no risk.
I do know that it is very difficult to earn returns of more than 3 % over
government debt yields under most conditions over the long - run.
One of those questions is the economic implications of
high government debt versus high personal debt.
Analysts expect authorities to step up their efforts this year, focusing on
local government debt, rising corporate and household debt levels and dealing with «zombie» companies.
After all, since 2006, your government has
increased government debt by $ 150 billion, after falling by about $ 80 billion under the previous Liberal government.
However whoever wins the next election will have two do to highly unpopular things very quickly to decrease the
massive Government debt, first - Raise taxes.
Today's low interest rate environment means that investors can no longer get the same rate of return they've gotten accustomed to with products
like government debt and high quality corporate bonds.
After many years of extraordinary monetary policy, an enormous quantity of
government debt now sits on central bank balance sheets.
As I've mentioned before, about $ 10 trillion worth of
global government debt now carries historically low or negative yields.
I happened across a blog I had never seen before today, and it gave a simple formula for
when government debts would tend to become unsustainable.
This will lead to pressure on European stocks and credits as well as peripheral bonds (e.g.
Italian government debt) because of lower growth and job losses.
At the same time we had
low government debt, conservative banking practices, a strong democracy, an effective legal system and low levels of official corruption.
This $ 300 - million budget deficit is not paid for by
additional government debt, but by union members who must increase their contributions to the pension fund.
The discussion about inflation is tied into a mind - set that high
government debt leads to inflation and is therefore bad.
I'm not sure this will have much affect on the ongoing European crisis since most of the
European government debt is in euros.
Right now the markets are very worried about the hidden exposure of European banks to
Greek government debt.
This expansion in debt will force all rates higher as investors seek to be compensated for the increased risk of
owning government debt.
So government debt is increased by giveaways to the banks, not by spending into the «real» economy.
Along with a government budget deficit of $ 1.2 trillion, that's nearly $ 2 trillion in
new government debt that will need financing annually.
I have looked at the relationship between per capita changes in real GDP and
government debt per capita and the relationship is negative, not positive.
This one - percent change results in an additional budget deficit hole of $ 1.9 billion, which will not be financed
through government debt.
While there are some exceptions (like special rules for student loans), bankruptcy eliminates most unsecured debts
including government debts like income taxes.
This is a huge vote of confidence in the credibility of
British Government debt and a major source of stability for the British economy at a time of exceptional instability.
But his big concern is that high -
risk government debt can still be carried on the books as safe capital.
During this
time government debt will have to rise as the government absorbs the employment consequences of these disruptions, and unfortunately higher debt will itself put downward pressure on growth.
It is not strictly corporate, despite its name, and can invest in foreign and
domestic government debt, according to its prospectus.
Higher borrowing costs would discourage business investment and raise the cost of
servicing government debt to unhealthy levels.
Phrases with «government debt»