As has been experienced by Alberta and other jurisdictions, a lower credit rating materially
increases debt servicing costs (i.e. interest payments).
Stoking the economy under these conditions, we will breed inflation forcing the Fed to increase interest rates which will stifle growth and
increase debt service costs.
Not exact matches
The Penn model found that the bill would
increase the federal deficit by $ 1.327 trillion over the first 10 years after it becomes law (not including
debt -
service costs).
This is because the province has accumulated a large public
debt that given the prospects for an economic slowdown and / or rising interest rates will potentially
increase fiscal pressure via
debt service costs which in 2016 - 17 totaled $ 11.7 billion or just over 8 percent of total government spending.
«If you assume that for many years China has been misallocating investment (by which I simply mean that the resulting
increase in productivity generated by the investment was less than the correctly calculated
debt -
servicing cost)...» How about not «assuming» and offer proof?
There are many other ways of allocating a significant portion of the
debt -
servicing cost to unwilling agents in the economic equivalent of
debt forgiveness: to creditors when
debt is repudiated, to workers when wages are suppressed in order to
increase net revenues for
debt servicing, to small business owners when assets are expropriated to pay down
debt, and so on.
While lower global interest rates have helped contain
debt -
servicing costs, the past year or so has seen a significant
increase in net dividend payments.
It, and the foreign currency
debt servicing payments, are therefore subject to valuation effects when the exchange rate changes; currency depreciation
increases the
debt -
servicing costs in Australian dollar terms.
Examples of these risks, uncertainties and other factors include, but are not limited to the impact of: adverse general economic and related factors, such as fluctuating or
increasing levels of unemployment, underemployment and the volatility of fuel prices, declines in the securities and real estate markets, and perceptions of these conditions that decrease the level of disposable income of consumers or consumer confidence; adverse events impacting the security of travel, such as terrorist acts, armed conflict and threats thereof, acts of piracy, and other international events; the risks and
increased costs associated with operating internationally; our expansion into and investments in new markets; breaches in data security or other disturbances to our information technology and other networks; the spread of epidemics and viral outbreaks; adverse incidents involving cruise ships; changes in fuel prices and / or other cruise operating
costs; any impairment of our tradenames or goodwill; our hedging strategies; our inability to obtain adequate insurance coverage; our substantial indebtedness, including the ability to raise additional capital to fund our operations, and to generate the necessary amount of cash to
service our existing
debt; restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business; the significant portion of our assets pledged as collateral under our existing
debt agreements and the ability of our creditors to accelerate the repayment of our indebtedness; volatility and disruptions in the global credit and financial markets, which may adversely affect our ability to borrow and could
increase our counterparty credit risks, including those under our credit facilities, derivatives, contingent obligations, insurance contracts and new ship progress payment guarantees; fluctuations in foreign currency exchange rates; overcapacity in key markets or globally; our inability to recruit or retain qualified personnel or the loss of key personnel; future changes relating to how external distribution channels sell and market our cruises; our reliance on third parties to provide hotel management
services to certain ships and certain other
services; delays in our shipbuilding program and ship repairs, maintenance and refurbishments; future
increases in the price of, or major changes or reduction in, commercial airline
services; seasonal variations in passenger fare rates and occupancy levels at different times of the year; our ability to keep pace with developments in technology; amendments to our collective bargaining agreements for crew members and other employee relation issues; the continued availability of attractive port destinations; pending or threatened litigation, investigations and enforcement actions; changes involving the tax and environmental regulatory regimes in which we operate; and other factors set forth under «Risk Factors» in our most recently filed Annual Report on Form 10 - K and subsequent filings by the Company with the Securities and Exchange Commission.
«No matter what the Administration is painting as a rosy picture that there's going to be a decrease in the overall
debt, I just don't see how a project of $ 192 million plus other projects that we have been assured will move forward at a
cost of $ 93 million and knowing that union contracts will be up for ratification throughout the next several years, there's no way that the county can say that our taxes will not
increase and that I can't imagine will be able to stay under the cap unless we decimate
services,» says Strawinski.
This practice does not have any impact on total
debt service costs, but
increases spending in the year the prepayment is made and reduces it in the subsequent year, thereby causing the growth rate from year to year to appear lower.
A contingency budget should not be a zero
increase in the tax levy; it should be set it at the cap and contain necessary exclusions (
debt service,
increases in pension
costs, tax certiorari payments and
costs due to enrollment
increases, etc.);
The authority's finances improved this year with almost a $ 500 million
increase in tax revenues, and
costs such as energy,
debt service and pension contributions have decreased.
The de Blasio administration says that the
increases are more than offset by savings related to health care
costs,
debt service, and agency adjustments.
Huntington, for example, will delay capital projects if borrowing will cause
debt service costs to
increase, Nadelson said.
City - funded spending is projected to
increase at an average annual rate of 4.6 percent between Fiscal Years 2013 and 2018, driven by higher labor
costs and
debt service.
Once the likely
costs of benefit payments and
increased debt interest were taken off the spending total, the amount left to spend on public
services faced an inevitable squeeze.
A rise in the global lending rate
increases the
cost of
servicing debt and magnifies the risk of sovereign defaults in general.»
As we reported in the July 18 WEAC Legislative Update, referendum restrictions included in the Senate GOP plan would exclude from «shared
cost» any amount levied by a district in a prior year for either operating or
debt service costs that were authorized by a referendum if doing so would not
increase the district's equalization aid entitlement.
Doubly stinging, another nearly 500 districts are seeing an
increase in their required contributions to the
debt service on grants they received for new construction
costs, not a sizable amount for many of them, but a significant six - figure hit for more than a dozen.
The burden is even more problematic if you consider the country's high interest rates — the policy rate was just raised to 12.75 %, one of the highest among major economies — which dramatically
increase the
costs of
servicing debt.
If the overall
cost of
servicing debt is lowered through rate games, and the
debts are
increased because families / corporations / nations are taking the worm on the fish hook, it does not mean that the hook itself won't cause severe damage or death.
Lower yields
increases borrowing and lowers
debt servicing costs, pushing up consumption.
As far as the government is concerned, there is also the problem of demand for the (existing)
debt at such low yields and that more new
debt can't be issued at higher yields without
increasing the
cost of
servicing that
debt.
Increasing licensing fees increases student debt which, in turn, reduces diversity in the legal profession and restricts access to justice by increasing the downstream cost of legal
Increasing licensing fees
increases student
debt which, in turn, reduces diversity in the legal profession and restricts access to justice by
increasing the downstream cost of legal
increasing the downstream
cost of legal
services.
As corporations seek more and more profits, all levels of governments are
increasing taxes and closing tax loopholes, new technology
costs are
increasing (cell phones, internet), higher and higher levels of consumer
debt (
debt servicing)
increase... these all erode cash flow for the average family.