We have
unsustainable debt increases because of lack of self - control on the part of our leaders.
Not exact matches
However, over time subnational
debt levels will
increase in an
unsustainable manner.
Greeks need to recognize that there is no going back to a way of life that was paid for by an
unsustainable increase in
debt.
The so - called «
debt - resource - hypothesis» suggests that high indebtedness leads to
increased natural resource exploitation as well as more
unsustainable patterns of resource use (Neumayer 2012).
Without a massive transfer of wealth from the state sector to the household sector it will be impossible, I would argue, for GDP growth rates of anything above 3 - 4 % — and perhaps even less — to occur without a further
unsustainable increase in
debt, whether that
increase occurs inside or outside the formal banking system and whether or not discipline has been imposed on borrowers.
It is important to understand how
debt payments are managed in order to recognize that whether or not China's
debt burden is socialized has very little to do with the resolution of China's
debt burden (aside from the fact that it never was «off» the government balance sheet in any meaningful way), just as analysts must recognize that an
unsustainable increase in
debt is embedded into China's current growth model, and is not an accidental bit of bad luck.
The
unsustainable increase in
debt continues to be China's greatest economic vulnerability.
There is, in other words, actually quite a lot that we know and understand about the model, even if many of us seem to have forgotten much of it — including its typical weaknesses, one of the most obvious of which is the tendency for over-investment in the late stages of the miracle - growth period leading to an
unsustainable increase in
debt.
At the time the former seemed a more dangerous risk than the latter — although even then massive overinvestment was China's true vulnerability — but I think by now there is a rapidly developing consensus that investment, and the
unsustainable concomitant
increase in
debt, is China's biggest problem.
«Student reliance on credit card and student loan
debt to pay for more than tuition is further evidence that the
increase in college expenses remains
unsustainable,» says Charles Tran, founder of CreditDonkey.com.
1 % interest
increase on a 16 Trillion dollar
debt would be
unsustainable.