Normally, we would expect symmetric risk from a fixed income product
like government debt since a 1 % increase in interest rates would result in approximately the same change as a 1 % drop in interest rates.
Sufficed to say, if there is ever a crisis of confidence in fiat currency based assets,
like government debt, there aren't many options out there for central banks to use in order to restore faith in the system.
Second, while it makes sense that an environment in which investments,
like government debt, are yielding a smaller return might cause people to spend less today in order to make their retirement goals, there just isn't a lot of evidence that this happens in the real world.
Not exact matches
Dr. Greenspan has long been concerned that the high US
government debt levels are going to cause a Greek -
like implosion in the USA.
And at a time of political uncertainly and rising U.S.
government debt, where the long - term viability of pillars of retirement - age financial security
like Medicare and Social Security is increasingly in doubt, the urgency of preparing for a long post-career life becomes that much greater.
Like the other Italian cities on this list, Florence has been crushed by the sovereign
debt crisis and the political turmoil of the Berlusconi
government.
Polish equities also look
like a potential winner according to Lynn due to the countries fast growth rate (relative to euro zone), its low
government debt and the country's location (next door to Germany).
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.»
The local
government's crippling
debt of more than $ 73 billion and PREPA's own obligations of $ 9 billion made it hard to keep up with critical maintenance
like trimming tree branches away from power lines, let alone make upgrades to make the energy network.
To get Greece's
government debt - to - GDP ratio to a more acceptable level,
like 120 % (from some 170 % now), Europe's leaders were going to have to reduce Greece's
debt burden even more, and that potentially meant having to take a haircut of their own.
Mainstream economists
like Nobel Prize winner Paul Krugman tell us that
debt is inherently good, and that
governments should borrow heavily and often.
In recent years, some things have been labeled the «Next Lehman,»
like China's potential economic slowdown, a bankruptcy of Greece or high U.S.
government debt levels.
Congress must act by Sept. 29 to increase the United States» $ 19.9 trillion
debt limit, in order to permit the
government to continue borrowing money to pay bills
like Social Security and interest.
DEBT Pension Deficits: While Private plans have an estimated deficit of just $ 465 billion, Public plans of local, state and the federal
government in the US are estimated to have something
like $ 1.6 trillion!
Given the
debt load in the US and given statements made by
government officials, this seems
like a reasonable conclusion to draw.
«We have a backdrop that's more
like the 1940s when
governments were saddled with
debt after the war and central banks held a big proportion,» Major said.
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.
The German voters are very much in favor of more fiscal discipline, making it hard for the German
government to openly consider any
debt restructuring, which ultimately seems
like the only way to go.
We can complain that spending
like that by
government is putting us in
debt, but we are still doing it.
Look closely, and this scene tells you a lot about what Italy is today: an MC Escher -
like tangle of governmental bureaucracy; social tension exacerbated by a relatively recent influx of immigrants; passive resignation to years of high unemployment, virtually no economic growth, and
government debt that is now nearly 140 percent of the gross domestic product.
But certainly with
debt,
like every
government, we have
debt, the NPP
government borrowed quite a lot and were even given
debt forgiveness in what was called HIPC.
Debt limit debates, threats of
government shutdown, and the
like are likely to become a thing of the past.
It may be pertinent to mention that the book value of the power plant which is currently estimated at USD 325 million after five (5) years, with a life cycle of around 15 -20 years, will be handed over to the
Government as a
debt free asset which can be used to leverage and raise financing as a collateral or else the
Government may choose to sell the operating asset to any investor who may not
like to take any development risk, hence the plant being operational and in its best conditions.
Mr. Speaker, on the
debt stock, I would
like to recall that one of the challenging economic situations that our
government inherited was a ballooning
debt stock which placed undue burden on the 2017 budget.
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).
By removing the participatory element of classical democracy, «improper» and «wicked» proposals
like a «rage for paper money, or an abolition of
debts, for an equal division of property» [vii] would be kept far away from republican
government.
Mr. Faulk added that a public - private partnership
like the East End Veterans Clinic at the County Center in Yaphank would be ideal, since it would not have any financial impact on Suffolk County as the county
government wrestles with its looming
debt.
«The choice for Republicans is clear: they can keep Richard Hanna, who votes to raise taxes, to extend U.S.
debt to economically dangerous levels by voting with Obama, Reid and Pelosi to raise the
debt ceiling while bankrupting our nation, or they can choose a commonsense Republican
like me who has a proven record of voting to reduce taxes, voting against the implementation of Obamacare in New York, votes against funding an illegal database (including ammunition database) against legal gun owners, voting against increasing our
debt ceiling in New York and supports countless initiatives to reduce the burdens of
government red tape on individuals and small businesses, including family farms,» Tenney said.
«I would
like to assure all public spirited Ghanaians that should I be given the opportunity to examine the Judgment Debtor, Alfred Agbesi Woyome, in Court the good people of Ghana will hear and see the beneficiaries of the unconstitutional judgment
debt in the NDC and this
Government,» Mr Amidu stated in his application which he filed on November 10.
EDIT: In response to LateralFractal, most
government systems don't have a «
debt ceiling»
like the US does - if the expenditure is authorized then raising the money (borrowing) is also authorized.
If not for outside analysts
like the Empire Center for New York State Policy, taxpayers wouldn't know that state and local
governments could rack up an estimated $ 5.3 billion in
debt over the next three years.
A spokesperson for Cox said he was talking about
debt incurred by state and local
governments, not personal
debt like credit cards or auto loans.
Once we factor in spending on the
likes of
debt interest and benefits, the
government's figures show spending on public services will have to be cut between 2011 and 2014.
Wrapped up in the total spending figures are things
like debt interest and benefit payments, over which the
government has little control.
Facts
like the Tories have massively increased the national
debt — in fact Richard don't you think that there is a basic immorality in what the Tories have done, all that increase in national
debt but unlike the last Labour
government this shower have nowt to show for it?
You know,
like the fact that the last Labour
government had reduced the national
debt as a percentage of GDP to its lowest level since WWII before the international financial crisis hit in 2008.
Still, Senate Democratic leaders on Wednesday urged Republicans to come to the bargaining table to work out a deal to finance the
government through Sept. 30 and perhaps go beyond the immediate fiscal issues to take on larger budgetary questions about spending on entitlement programs
like Medicare and an increase in the
debt limit.
The researchers suggest at the end of the paper that if the
government sees a need to spur more consumer spending, particularly on durable goods
like automobiles, that it might consider directly targeting consumer
debt burdens.
Ordinary people
like you or me aren't the only ones who can run up
debts —
governments can owe people money, too!
And, in fact, the share of financial aid being given to low - income students
like Chris Ogren, who are falling deeper and deeper into
debt, has declined steadily over the last 10 years,
government statistics show.
No one in the comics industry had been doing this and for longtime publishers
like Marvel and DC to insist on ownership of original art would've meant embracing a disastrous
debt to state
governments.
Although
government bonds are supposed to be guaranteed because they can use tax revenue to pay out the money, there have been instances of countries
like Russia defaulting on its domestic currency
debt.
A look at trading options on
debt instruments,
like U.S. Treasury bonds and other
government securities.
Debt mutual funds mainly invest in fixed income securities like Treasury Bills, Government securities, corporate bonds, and other debt securities with different maturit
Debt mutual funds mainly invest in fixed income securities
like Treasury Bills,
Government securities, corporate bonds, and other
debt securities with different maturit
debt securities with different maturities.
Monthly Income Plan or the MIP is basically a
debt - oriented hybrid mutual fund where nearly three - fourth of the corpus is invested in
debt instruments such as debentures,
government securities, and the
likes.
When the scheme puts most of the funds in
debt products
like government securities, corporate bonds, or fixed deposits, it is known as a
debt fund.
Like any other form of
debt, past due taxes is a
debt — a
debt to the
government — that carries interest.
Most of those
governments have
debt denominated in their local currency as well so it may seem
like they should all have similar rates.
However, the
government is reluctant to provide any stimulus to the housing market at the same time it's introducing measures
like the new mortgage stress - test rules to slow down consumer
debt.
Loan Forgiveness The federal
government may write off one's student loan
debt in certain cases,
like in the event of military service, volunteer work, or if one practices medicine or teaches in specified communities.