This means that unless investors are repeatedly surprised, inflation will lead to higher nominal interest rates as debt is refinanced, and in turn to an unchanged real debt.
It should be obvious there is something deeply wrong with our laws when someone like Casey Anthony can turn to the bankruptcy courts for a fresh financial start, but men and women who incurred debt in an effort to better themselves or their loved ones cannot get even a smidgeon of such aid.
There will be more defaults, more volatility in the Euro, and more nations striving to reduce government spending in an attempt to alleviate debt burdens.
There's a tendency for these borrowers, and their lenders, to live in a delusional world in which an inability to service the debt is papered over with refinancings and creative repayment schedules.
Sirius XM Radio is fighting for a stay of execution, reworking some of its debt in an effort to avoid bankruptcy.
Taxing depositors is seen by the market as a radical change from the usual practice, and doing so would give depositors in other debt-ridden countries an incentive to shift their money to banks in other countries, most likely Germany.
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However this flexibility also gives Colgate more options to defend itself, for example by raising debt to pursue non-strategic acquisitions in an attempt to avoid takeover bids and lever up its balance sheet to make it less attractive.
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This will also provide an opportunity for the ESM to receive loans to purchase sovereign debt in an almost unlimited capacity, effectively mutualising debt between countries (effectively creating a common Eurobond) while expanding capacity to purchase on an unlimited basis.
It would be nice if the proponents of reducing the deficits and the debt could achieve those essential goals by threatening to block an increase in the debt ceiling.
The government raised the consumption tax in April 1997 in an attempt to rein in the rising debt.
They would all represent, implicitly at least, an increment to the national debt (at least in an economic sense, if not in a strict public-accounting sense).
Out the door have gone a motorcycle factory and brewery in Shanghai, a stake in Chinese satellite operator Apstar, and a string of other non-core ventures in an effort to pay down debt.
The Treasury blamed this delay on an unprecedented volume of participation by small investors, on failure of Congress to act in a timely fashion on the debt ceiling legislation in April, and on an unanticipated failure of word processing equipment used to prepare check schedules.
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This heavy burden of debt, combined with a troubling job outlook, has led to an understandable rise in student loan debt default rates.
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There was general market optimism on the debt front late Thursday after the European news and also hopes for a settlement in politically charged debt-ceiling talks in the U.S. However, any expectations for an quick resolution to the debt-ceiling issue have dissipated, while concerns about Europe persist, with the euro back on the defensive.
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Greece, which is at the center of Europe's debt crisis, is battling to stay afloat in the face of an unsustainable level of debt and an economy that has been in recession for years.
The nation actually reached its debt ceiling yesterday and, while the Treasury Department says that it can continue to pay outstanding debt obligations and other bills for another two months, there will need to be an all new debt ceiling battle in Congress beginning in February to allow the nation to continuing making payments on its debt obligations.
Giving money to private-equity managers, who then use debt to acquire quoted companies, is viewed in an entirely different light but amounts to the same gamble.
Firms are understandably reluctant to expand operations in an environment where households are debt-ridden and the financial sector continues to be marked more by a desire to get rich quick than facilitate the production of goods and services.
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What the Bank of England is and should be watching, however, is not the level of house-prices but the level of borrowing: a substantial fall in house-prices now will be far better than an escalation of debt to levels that would result in a prolonged deflationary slump such as that experienced by Japan and other Asian countries.
The International Monetary Fund had already projected that the 17-nation euro zone will be in a mild recession this year, and now has warned that European governments need to be careful how quickly they cut back on government spending in an effort to tackle their record government debt, warning that steep budget cuts now will slow growth further and worsen the situation.
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The 17 members of the eurozone, of which the UK is not a part, are expected to back further fiscal and political integration in an effort to prevent a repeat of the debt crisis.
Mired in debt, the city sold the building to an investor who found a pretext to terminate the leases.
Wealthy nations are busy debasing their currency in an attempt to lower debt service costs and make their products more attractive on the world market.
Long-term low-interest loans help the banks themselves as well as put them in a position to buy European sovereign debt, an excess of which is the main problem.
Many countries, particularly within the eurozone, have been cutting back hard on welfare spending in an attempt to reduce debt and balance government books as tax revenues fall because of weak growth.
Yet I wonder: If a company accepts millions of dollars in venture capital (debt), answers to an external board, and creates something that is designed to be sold to a bigger fish, does this really help the people who work there more so than a small business?
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The Bank of England is in the midst of QE as well, the Bank of Japan Wednesday announced plans to expand its QE, and the European Central Bank has indicated it would undertake bond purchases in an attempt to help debt-plagued nations and shore up the euro.
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It was the insistent "believe me, it will be enough, " that did the trick, sending yields on Spanish two-year debt down 72 basis points to 5.47% in barely an hour, with comparable moves on Italian debt.
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David Whileman, head in Britain of 3i Growth Capital, sees the end of the era of cheap debt as an opportunity for those prepared to invest in growth.
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