Sentences with phrase «government debt leads»

The discussion about inflation is tied into a mind - set that high government debt leads to inflation and is therefore bad.
This can be expected to produce a negative trickle - down effect, as higher government debt leads to higher interest rates, lower business investment, and higher future tax rates — possibly on the middle class.
Portuguese government debt led declines in securities from Europe's most indebted nations, while banks dragged stocks in the region down more than 1 percent.

Not exact matches

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?
U.S. government debt prices were mixed on Friday as investors awaited a vote on the Republican - led health - care bill.
The 2011 showdown that led the U.S. to the brink of a debt default and then a government shutdown was about ideology and party politics.
Greece and its European creditors are at an impasse over measures that the Syriza - led government should legislate in order to be granted some debt relief.
U.S. government debt prices were flat on Friday as investors awaited a vote on the Republican - led health - care bill.
Republicans and some Wall Street analysts warn that Senate Majority Leader Harry Reid's decision to blow up the filibuster on presidential nominations will lead to an even darker period of partisan acrimony, throwing into question the ability of Congress to pass a bill to fund the government past January and raise the debt limit in February.
The Republican - led Congress has struggled immensely over the past eight months, and the party now faces further division as they return and urgently need to raise the debt ceiling to avoid a government shutdown, pass an aid package for Hurricane Harvey — some of which is expected to be tied to the raise of the debt ceiling — and now reach a decision on DACA.
Progress in a few areas has been solid: slashing of bureaucratic red tape has led to a surge in new private businesses; full liberalization of interest rates seems likely following the introduction of bank deposit insurance in May; Rmb 2 trillion (US$ 325 billion) of local government debt is being sensibly restructured into long - term bonds; tighter environmental regulation and more stringent resource taxes have contributed to a surprising two - year decline in China's consumption of coal.
In one paper he co-wrote in the spring of 2002, just months after he joined Goldman Sachs to lead its effort to win investment banking business from European governments, Mr. Draghi argued that governments might use financial derivatives like interest rate swaps «to stabilize tax revenue and avoid the sudden accumulation of debt
This led to budget deficits, and Wall Street banks helped the government conceal its public debt in «free enterprise» junk accounting.
This was the Conservative strategy that was introduced in 2006 and subsequently led to 9 years of deficit and increase of $ 150 billion in government debt.
Between June and July 2015, it appeared that the divergences separating the Greek far - left Tsipras government and its EU and international interlocutors had the potential of leading to a sovereign debt default.
The vast stimulus programme launched at the end of 2008 to counter the world financial crisis restored growth but led to wholesale misallocation of capital into wasteful projects that earn scant returns, the vast debt problem affecting companies as well as local governments, and also created soaring excess capacity in sectors such as steel production.
Lower taxes would likely lead to larger deficits, which could require the Treasury to issue more debt, increasing the supply of government bonds on the market.
The monetary stimulus, known as quantitative easing, means that the Fed is monetizing US government debt, which critics contend could lead to future inflation and asset bubbles.
However, looking to the US, he predicted that President Trump's promise of an increase in spending and a reduction in taxes would lead to a surge in borrowing and an increase in government debt.
Manama - based GIB Capital was lead bookrunner of a $ 1.5 billion sovereign bond issued by the government of Bahrain last October in the country's largest debt deal of 2013.
But the impasse in Washington over the government's deficit and $ 14.3 trillion debt limit has led some global financial players to expect the change.
In May 2010, French President Nicolas Sarkozy took the lead in rounding up $ 120bn ($ 180 billion) from European governments to subsidize Greece's unprogressive tax system that had led its government into debt — which Wall Street banks had helped conceal with Enron - style accounting.
That naturally led a lot of people to want to buy it, giving the government a reason to take out lots of debt.
The bottom line: Given the significant levels of debt that remain on household and government balance sheets, inflation is likely to remain lower than what we experienced in periods leading up to the financial crisis.
But regulators, led by the powerful government commission overseeing state assets — known as the State - owned Assets Supervision and Administration Commission, or SASAC — are pushing for changes in the rules to help heavily indebted state companies cut debts.
That could set up another showdown like those that took place in 2011 and 2013 — when lawmakers brought the government to the brink of defaulting on U.S. debt, leading Standard & Poor's to downgrade the nation's credit rating for the first time.
European yields have generally taken their lead from developments in the US over recent months, with yields on German 10 - year government debt also falling toward 4 per cent in mid January, before increasing to 4.2 per cent after the Fed's late January monetary policy announcement.
Additionally, the short - term financing issue could become challenging during budgetary impasses when political confrontation leads to additional market angst over the federal government's willingness to properly finance its debt.
The Clark government's mismanagement of B.C. Hydro has also led to a spike in debt at the Crown corporation, meaning they will be forced to raise hydro rates even more.
And it is Government services that lead us in bad economies of high debt.
More spending now, paid for by more government borrowing and higher debt, would lead directly to rising interest rates and falling international confidence that would kill off the recovery not support it.
A team of Senior Government Officials, led by the Vice President, are meeting partners in London, Washington D.C and New York to share the Government's transformational economic agenda for addressing Ghana's debt, attracting investments and creating jobs.
Mr. Speaker, Government also sponsored the issuance ofCedi - denominated medium - to - long - term bonds (7 and 10 year bonds) on the back of the ESLA receivables to facilitate the clearance of the sector's legacy debts.Again, the Akufo - Addo Government is determined to turn away from the mismangement of the energy sector in the past which led to the accumulation of billions of debts by entities, such as BOST, to managing these startegic entities with integrity and efficiency.
Earlier this year, García - Padilla announced Puerto Rico's public debt reached $ 72 billion, leading some advocates to ask that the island territory be given the authority to declare a Chapter 9 bankruptcy, as states and local governments can but territories can not.
If public sector workers are given a bigger pay rise than the 1 % promised by the Government, it will lead to «debts ever larger for our children and our grandchildren to have to pay off», a senior minister said.
The failure to hit the rule Osborne set could lead credit ratings agencies to give up their faith in the chancellor, triggering a rise in interest rates on the debt and robbing the government of its main argument for its economic strategy.
«The APC - led Federal Government is again taking Nigeria prior to year 2005 when the external debt burden derailed the growth of Nigeria's economy and weakened the GDP before the total cancellation of her debt,» he added.
The government's mortgage rescue plans could significantly increase overall debt and lead to negative equity, experts have warned.
School districts and local governments have voiced concerns that a 2 percent cap as proposed by Cuomo — and approved by the Republican - led Senate in January — would be too difficult to live within because of required spending for debt, health care administration and distribution and pensions.
The three discussed raising the debt ceiling, an issue that almost led to a government shutdown.
The UK shrunk by 4.3 % in 2009 alone and the government had to bail out and nationalise large domestic banks, leading to increased government debt and deficit.
Existing prediction systems failed to forecast the global crash of 2008, which led to several governments bailing out their banks and European nations, such as Greece, Portugal, Ireland and Spain, being plunged into a sovereign debt crisis.
Despite its wartime thriller genes and gun - toting leads, The Debt is a much quieter film than you might imagine as it tells its story of misplaced heroics and dastardly deeds kept quiet by bloodthirsty governments.
Delaware (where my daughter just moved) is right, Secretary DeVos should review this guidance letter, and until the federal government gets its act together on secondary education (which it appears may never happen), families should opt out of state schools subject to federal dictates, opting in, instead, to learning institutions that embed preparation for exams at a pre-university level that can lead to placement advanced in future course sequences: these advanced level subjects should be embedded within the balanced curriculum that an international baccalaureate education represents, in contrast to the narrow extension of elementary school that DC bureaucrats remain focused on, as if time had not run out on the Obama administration and its failed efforts to improve the lives of American youth, now mired in debt that it encouraged in pursuit of a «North Star» goal that led the United States astray.
I would work with university partners, the support of teacher unions and contributions from their members, and the investment of leading state governments to develop a national fund for debt - free teacher preparation to support sustainable staffing of hard - to - serve communities.
Fear and uncertainty about the global economy are leading investors to embrace the relative safety of U.S. government debt and slashing yields to record lows.
To me, not doing that is disrespectful to taxpayers, and promotes borrower dependence on the government, leading to too much debt / cheap insurance.
They are leading us to a greater crisis where the only thing that does matter is debt, and for political reasons, some governments will not be willing to pay in full.
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.
Furthermore, the interest charged for those loans does not even exist in aggregate unless it is lent into existence too, leading to ever increasing private debt or if the interest comes from government deficit spending, ever increasing government debt (under the current system).
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