You end up spending almost as much money on anything else as you do in servicing that debt each and every year.
Safe havens have seen the value of their government debt shoot up, as vast money flows attempt to find refuge from the zombie government debt apocalypse, currently spreading from Greece and Portugal into Italy and Spain.
Billionaire financier and important member of the Clinton Global Initiative, Frank Giustra, gave a stimulating interview to the Canadian press recently, which basically emphasizes his consistent opinion that the U.S. has chosen the path of debt and money printing as a method for the central bank to try and resolve the political logjam in Washington.
The good news for the dollar is that dollar-debt, such as money market funds and Treasury bonds, are the most liquid, hotly traded, high demand fixed income asset in the world.
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Therefore a weak yen will be a natural consequence of the BOJ's plan to print money as a way to pay increased public debt - a measure to significantly reduce real interest rates.
The total amount of money owed by the state, known as public debt, has to be less than 60% of GDP.
So the relationship between the money supply and government debt is inverse, as one goes up the other goes down and vice versa.
And though all these challenges went unsolved, we still managed to spend more money and pile up more debt, both as individuals and through our government, than ever before.
Woosung Tire can thank its creditor banks for most of its profits: they agreed to waive interest and principal repayment on its debt, allowing it keep the money as earnings.
International bank regulators gave a second dangerous incentive to banks to lend to these countries, by classifying the debt as a close proxy for money for liquidity-management purposes (or to give protection against the risk of a bank run).
We will reduce government spending and our debt, letting people spend their own money as they see fit.
As a result, the government may not be able to raise enough fresh money for its regular operations as well as to repay its debt.
It is relatively easy to understand what will happen in Japan: deflation will quickly turn into hyperinflation as government is forced to print money to service its debt and social obligations.
"Paying sovereign debt is not the same thing as borrowing money so that this institution and this town can continue to spend money, " said Rep. Jeb Hensarling, R-Texas.
In fact, yields on 10-year U.S. Treasuries have fallen significantly as prices have increased due to investors shifting money from European debt to U.S. debt following the ongoing problems with the outstanding debt of the PIIGS (Portugal, Italy, Ireland, Greece and Spain) countries and the lack of market satisfaction with the recently announced bailout plan for Spain and Italy in particular.
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Paying down debt will save you money in the long term, as well as help your credit score.
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Ultra-short bond funds and enhanced-cash funds, which touted themselves as cash alternatives but invested in spicier debt than true money funds are allowed to, have fallen by the wayside.
Many of the mortgage companies would essentially take a mortgage, lending you money, and then sell that mortgage as a bond or basically as debt to Wall Street, and the Wall Street investor would then take the risk off the shoulders of the mortgage banker.
The debt grew larger, too, as more and more money was needed to support previous borrowing.
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The money you give the FROB Europe and distribute it to banks is counted as debt.
Chinese financial institutions could just as easily be acquiring dollar debt through offshore banks or other global money centers, mainly through London.
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She emphasized that central banks are limited by their guidelines as to where they can invest their reserves: usually money deposits, government debt, quasi-government debt.
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If the credit squeeze spreads and borrowing becomes harder, not just for housing but across other parts of the debt markets (such as commercial property or credit cards) money-market funds could withdraw even further from lending to banks.
The account is accumulating money that will be used to pay off the negotiated claims as well as cover the debt-relief company's charges.
As its debt woes have increased, it has been unable to pay money owed to staff, airports and tax authorities, as well as its lenders.
So Hyundai Engineering and Construction seems to be living on borrowed time as well as borrowed money, with about a fifth of its 5.2 trillion won debt falling due at the end of the year.
Much of this money does eventually come back to the U.S., but it comes back as debt.
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The idea is that, as long as the investment returns on the money raised are higher than the interest rates paid on debt, everyone gains.
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What is needed is fiscal austerity (slowly) before debt spirals out of control, offset by easy money or real QE for as long as it takes.
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