Sentences with phrase «when government debts»

There is extensive academic research indicating that when government debt rises above 90 percent of GDP for more than five years, this trend will reduce the economy's growth rate by a third.

Not exact matches

«When outstanding debt is large, the government has less flexibility to address financial and economic crises,» the CBO report said.

When bickering in Congress shut the government down and put it on the verge of defaulting on its debt, banks recoiled.

Though Portugal is one of the fastest growing euro zone economies, problems with non-performing loans and high debt among businesses, individuals and government are a big hurdle - mainly at a time when the government's strategy is focused on consumer spending.

If we came to learn that excessive household debt posed a bigger threat to economic growth than does a certain level of government debt, then policy makers would want to take that into account when setting interest rates.

Governments need to retrench fiscally, but this should not be pursued in the short term while the world economy is in danger of falling into recession when heavy debt loads are to be paid.

There's no new theme to it, just more riffs on the old one of a self - reinforcing spiral of slower growth in China crushing the economies of its raw material suppliers, while an appreciating dollar makes it ever harder for emerging market companies and governments to repay the debts they gleefully took on when the Federal Reserve was giving away dollars for free.

Unlike the years before the crisis, the global consensus now is that governments should be agnostic when it comes to fiscal policy; too much debt is problematic (Greece, Spain, etc.), but it can take more than a balanced budget to inspire business confidence and get executives to spend.

The legislation, called PROMESA, would create a federal oversight board to help Puerto Rico governments balance their budgets, improve financial reporting and facilitate debt restructuring when voluntary agreements between creditors and borrowers can not be reached.

The springboard for Altech to submit their licence application to MIDA was delivered late last year when it secured a remarkable German Government debt guarantee for US$ 170 million in project funding which shifted the venture into the development phase.

Morneau can risk expanding the deficit because the federal government's debt - to - GDP ratio is a relatively paltry 30 %, about half of what it was in the 1990s when Canada faced a fiscal crisis.

When the next wave of public debt distress hits foreign governments, Canadian investors, borrowers, and exporters will all be affected.»

The government will have trouble paying off its debts when they mature.

In an era when the pension liabilities of local governments remain a concern, investors may want to consider the debt offered by established public enterprises — airports and utilities, for example — as an attractive alternative to lease revenue and pension obligation bonds.

«When the public finances» deficit and the prospects of a worsening state debt threaten the future of France and Europe and when the government is asking everybody for solidarity, it seems necessary for us to contribute.&raWhen the public finances» deficit and the prospects of a worsening state debt threaten the future of France and Europe and when the government is asking everybody for solidarity, it seems necessary for us to contribute.&rawhen the government is asking everybody for solidarity, it seems necessary for us to contribute.»

My colleagues at the McKinsey Global Institute, our firm's business and economics research arm, have analyzed previous downturns and found that when individuals and governments focus on paying down debt, these efforts curb economic growth for three to five years.

In response to a journalist's question, the governor says he agrees with the view consumers are facing high debt loads today because they filled in the debt - accumulation void left when governments turned to austerity by shutting down stimulus measures to address fallout from the 2008 financial crisis.

When taxing capacity falls short of financial commitments, central banks usually end up printing money to buy up government debt.

He also talked about the ratio of government debt to the size of the economy when asked about the $ 10 - billion deficit promise from the election.

On paper, the recommendations for debt relief and reduced austerity «suddenly evaporate when IMF functionaries coalesce with their ECB and the European Commission colleagues in order to impose upon our government their chosen policies,» said Mr Varoufakis.

When the federal government is unable to set basic policies (or at least stick with them), approve a budget or even resolve to pay its bills by raising the debt limit, the nation's private sector leaders get worried.

The trio of ETFs, when they launch, will round out Franklin's bond ETF lineup, which already includes a variety of actively managed fixed - income funds covering short - duration U.S. government debt, municipal bonds and the investment - grade corporate debt.

Government austerity after the 1994 Peso crisis cut national deficits and debt, leaving it well - positioned when the 2008 crisis hit.

He also concludes that «raising its (the government's) deficit target back up to 1 per cent (from zero) makes more sense when there are other short - term - pain - for - long - term - gain initiatives that are needed to address more pressing objectives than lowering a debt ratio that is already the envy of the world.»

The devastating LDC debt crisis of the 1980s, which began in August 1982 when the Mexican government announced that it was unable to service its obligations to foreign banks, ended only in 1990, when these loans were exchanged for a nominal amount of Brady bonds equal to only 65 % of the original notional amount of outstanding loans.

Selling that much debt, especially at a time when emerging markets are suddenly out of favor, «will require the government to do a good job communicating its strategy on the fiscal and monetary side.»

Analysts and investors worry that a government shutdown this week would hit not just consumer and business confidence, but also make it more likely that the United States will default on its debt when it reaches its borrowing limit in about two weeks.

In 2011, when congressional Republicans were threatening to allow the government to default on its debts if their policy wish list was not met, Powell met with a number of GOP lawmakers, urging them to reconsider their strategy by pointing out the serious risks involved.

We are far better off than we were in 1995 when the federal government had a debt - to - GDP ratio of almost 70 per cent.

Assuming that the total amount of bad debt in the banking system exceeds total bank capital — something which is almost certainly true — the conversion of debt which can not be serviced into an equity position that is unlikely to generate much more (and in an economic downturn, which is when we are most concerned about the debt burden, we can assume that the decline in value of these equity positions will be highly correlated) leaves the net indebtedness of the banking system unchanged, and so the contingent liabilities of the government are unchanged even as reported debt in the system declines.

When market conditions favor wider diversification in the view of Hussman Strategic Advisors, Inc., the Fund's investment manager, the Fund may invest up to 30 % of its net assets in securities outside of the U.S. fixed - income market, such as utility and other energy - related stocks, precious metals and mining stocks, shares of real estate investment trusts («REITs»), shares of exchange - traded funds («ETFs») and other similar instruments, and foreign government debt securities, including debt issued by governments of emerging market countries.

As I've shown before, gold has tracked U.S. government debt up since 1971, when President Richard Nixon ended the gold standard.

The officials recommended that the nation closely watch factors such as the outlook for supply of U.S. government debt, along with political developments including trade disputes between the world's two biggest economies when deciding whether to cut some Treasury holdings, the people said.

TGR: Going back to the triple - witching hour at year - end, if the debt ceiling is raised again, when do we start to see government layoffs and limitations on services?

That being said, in Japan, when the debts are 24 times their central government tax revenue, they are already completely insolvent — it's just a question of when does it blow up.

Any of these factors, on top of a possible government shutdown at the end of September when the debt ceiling will likely be raised again, could send gold soaring well into the $ 1,300 range.

Another implication is that when considering what - if interest - rate scenarios and the ability of the US government to meet its financial obligations under the different scenarios, the assumption should be made that the portion of the debt held by the Fed has an effective interest rate of zero.

Today money is debt, so when a person, company or a government has a debt, they are in fact promising to pay back a debt with more debt.

Plus it takes the government more than 20 % of tax revenue each year just to pay INTEREST on its debt — and that's at a time when rates are actually NEGATIVE.

A downgrade on debt issued by the United States would have less severe consequences than a default, which takes places when a government fails to pay its creditors.

In fact, when it's all added up, total unfunded pension and retiree health care debt across all levels of Illinois government has grown to $ 267 billion.

When you factor in inflation, investors of shorter - term government debt are actually paying the government to hold their money, a proposition that's hard to swallow.

Alberta fell behind on critical infrastructure investment during the years when Ralph Klein was premier, when his government's singular focus was on deficit and debt reduction.

Even when governments borrow to spend on bridges and highways rather than programs, the debt is still not connected to a marketable asset.

«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.

And so for example, if you look at U.S. government debt, which is the one almost everyone always talks about, most people aren't sitting there worrying about how much debt does Amazon have, when you look at government debt, interest payments on government debt as a percent of GDP or as a percent of tax revenue, currently because interest rates are relatively low, are very low, are running half, literally half of what they were in the second half of the»80s and the first half of the»90s.

For example, when President Reagan cut taxes, government debt was 31 percent of GDP and now that's 106 percent on its way to 120 - 125 percent.

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 danger the United States faces today is that the government debt crisis scheduled to hit Congress next spring (when Republicans are threatening to vote against raising the federal debt limit as the government deficit soars) will provide an opportunity for the wealthy to give a coup de grace on what is left of progressive taxation in this country.

But since 2000, when the government last balanced its books, public sector debt has climbed from 28 % of national income to more than 86 %.