government debt

Despite the downgrade, US government debt was one of the big beneficiaries of the sell-off .

Fears about heavy loads of government debt following the financial crisis are beginning to be realized in Europe.

The bond bubble is getting ready to burst, which will collapse the U. S. government debt bubble with it.

This was a chance to trade bets on, in effect, the death of a non-existent horse, as Estonia has no publicly traded government debt.

I speak of the Greek default as a sure thing because it is: the markets are pricing Greek government debt as if it has already defaulted.

Mr Key said he thought the OECD's conclusions were overly pessimistic and pointed out that government debt levels were very low.

Reports revealed that some of the banks did not provide full disclosure of their government-debt holdings.

How much government debt is too much is an open question because tolerance for public debt is highly dependent on prevailing perception.

This works right up to the point where government debt itself hits crisis, as it already has in the eurozone's weaker countries.

Fund managers now seem to be reluctant to hold any euro-zone government debt.

Among the biggest cash hoarders were firms in Great Britain, where government debt has been a major concern.

What had been expected to be a difficult sale of US government debt instead attracted record demand, led by foreign investors.

The purchases of their government debt helped reduce their borrowing costs, but the bank will probably have to act again.

What are the benefits of such a reduction in the average maturity of government debt in the current economic environment?

The bubble in Treasuries looks ready to pop, sending prices on government debt sharply lower.

When people did not enjoy long retirements and population growth was rapid, the optimal amount of government debt was zero.

And now it does look like some investors are more reluctant than they were to hold even German government debt.

Spreads on the ten-year government debt of Greece, Ireland, Italy, Portugal and Spain over that of Germany have widened sharply.

It may well be that the models can be applied with the assumption that government debt is still the lowest risk available.

Financial, commodity and materials sectors were all hit hard by fears of escalating government debt problems in Greece, Portugal and Spain.

China and Japan in particular have continued to purchase U. S. government debt, lest their currencies appreciate.

While equity valuations were looking reasonable, Mr Ablin said, he preferred cash and short-term government debt.

The only other market that is liquid enough to absorb their cash is European government debt, and that has its own problems.

Even so, surely it cannot be right for people who do not own any government debt to profit from sovereign distress?

Some investors are beginning to fear that a growing government debt mountain induced by a slump will create incentives for future inflation.

Banks in Europe are being affected by worries over government debt, which makes them less willing to lend to one another.

For some time the Asian sovereign wealth funds have been diversifying away from developed economy government debt portfolios.

And it would ensure that higher government debt did not crowd out private investment, which could lower future growth.

Even with a strong economic recovery, the ratio of government debt to GDP would double to 80 per cent in the next 10 years.

The spreads between Italian and German government debt had begun to widen well before Mr Papandreou dropped his bombshell.

Money is a form of government debt, so a paper currency, it was thought, must need a state behind it.

This year saw anxiety over rising government debt in Europe escalate into a crisis of global proportions.

The main credit rating agencies say they are reviewing the U. S. government debt situation for a potential downgrade.

Others point out that China could be facing a debt crisis of its own making given high levels of local government debt that could turn sour.

And it's why any attempt to "solve" our current problems by focusing on cutting the public or government debt isn't going to work.

Even if inflation could be created, would it reduce the real government debt, the presumed purpose of such a policy?

But Clinton warned that mounting government debt is beginning to erode U. S. power abroad.

Most of the reserves are in the safest investments available: government debt issued by the U. S. , Japan, or European nations.

Europe's nearly $1 trillion rescue plan seems to have quieted the government debt storm for the time being.

Liberalization of interest rates in the primary government debt market would be an essential prerequisite.

Government debt in Canada is still below 36% of GDP (and will soon fall), little more than half the (rising) ratio in the United States.

Only her encouragement of big emerging markets to buy European government debt seems to have a chance of moving forward.

Spain, too, has been caught up in the crisis - hit by high unemployment, high government debt and slow growth.

Finally, the claim that China's total government debt is spiraling out of control depends on implausible assumptions.

Central government debt tends to rise over 85% in real terms during the first three years after a banking crisis.

No country in the sample has much chance of government-debt reduction over the next couple of years.

Indeed its fiscal position is enviable, with gross government debt less than forty per cent the size of the Swiss economy.

Big foreign investors in U. S. government debt also might recoil if the dollar fell too far, forcing the U. S. to pay higher rates.

Tracking the flow of money across U. S. borders, it includes data on foreign demand for government debt.

So few are the options that even a ratings downgrade of American government debt in August spurred buying of the derided Treasuries.

Its stunning government debt is supported by one of the globe's deepest pools of consumer and corporate savings.

Once the Bank stops buying government debt, interest rates will shoot up.

And as it does, it becomes a banking crisis as well, since a country's banks are normally heavily invested in government debt.

This came in response to market jitters about the lack of detail in previous commitments and a jump in spreads on Greek government debt.

To be fair, the shares of almost all banks in Europe have been hurt by concerns over the government debt crisis (see chart).

With US government debt repayment now in play, the very concept of dollar-based riskless assets is in doubt.

In the last two years, central-government debt has stayed low but local-government debt has surged.

The eurozone could easily fall into a self-reinforcing cycle of bank and government debt default.

In recent months, investors worldwide have been concerned that mounting government debt in Europe would stall a global recovery.

Admittedly, it would be unsound for the US to preserve current imbalances by accumulating government debt indefinitely.

Local governments' stimulus plans are likely to lead to even worse overcapacity in some industries and even worse government debt, he said.

When assessing a country's real debt situation, rating agencies usually use a concept known as "general government" debt.

Although the rhetoric right now focuses on the huge run-up in government debt, the real need for debt reduction is on the private side.

Blunt proposed that government-debt holders exchange their paper for new stock in the company.

It may sound easy since national government debt as a percentage of GDP is only 20%.

The benefits of this type of eurozone government debt slicing would be significant.

A prolonged explosion of government debt is, in turn, an exceedingly common characteristic of the aftermath of crises.

That stockpile has caused headaches for Beijing, which holds most of it in U. S. government debt and other dollar assets.

The ECB could also take a more aggressive approach to buying government debt as a way to drive down borrowing costs.

If the current 335% ratio of household, business and government debt-to-GDP sounds bad now, just imagine if GDP were to contract.

The definition used in Washington, DC, is "federal government debt held by the public" , which stood at 62% of GDP at the end of 2010.

Central banks have been buying up government debt, helping to keep interest costs low in the U. S and U. K.

At the time, worries about banks' government-debt holdings were fanning fears about the health of Europe's banking system as a whole.

If default by euro-zone governments is no longer inconceivable, investors will change their view of the safe level of government debt.

Notes also gained as Asian stocks dropped for a third day, feeding demand for the relative safety of government debt.

A few months ago, the dollar was on the rise as investors focused on Europe's government-debt crisis.

Moody's pointed out that French government debt metrics "are now among the weakest of France's triple-A peers" .

Investors jumped back into the Treasury bond market as they shunned stocks for the safety of government debt.

The common progression begins with a housing boom, money flowing in from overseas, and rising government debt.

And no approaching government debt crisis in the core economies can be seen when tracking government interest rates.

They also promised to try to reduce the size of their government debt in relation to their economy by twenty sixteen.

Here, stress tests have looked at the possibility of a second recession but not a government-debt crisis.

Holdings of bonds do not tell the full story of banks' exposure to Greek government debt.

But loading up shaky European banks with otherwise unsaleable government debt is not a sustainable solution.

Since any subsidy distorts decisions towards greater profligacy, government debt will probably swell, possibly to unsustainable levels.

Investors have been buying government debt for years in the belief it is "risk-free" , almost regardless of the economic fundamentals.

"The only entities that could trigger a crisis of confidence in government debt are themselves owned by the government, " they say.

At least the average term to maturity for gilts is 14 years; it is about four on American central-government debt.

Real government debt rises by an average of 86% in countries afflicted by severe crises.

Belgium has sported a government debt-to-GDP ratio of more than 100 per cent for the best part of two decades.

By contrast, Italy's very large banking system is heavily exposed to its government debt.

Credit-default-swap spreads on its government debt have surged to horrifying levels, signalling that investors see a high risk of default.

Currently, China is providing stability as the largest holder of US government debt and US dollar-denominated reserves.

" Nearly half of those polled believe China's large holdings of U. S. government debt pose a " critical threat to vital U. S. interests.

Central banks have responded by expanding loans to financial institutions, purchasing private securities and buying government debt.

Government debt held by the public was $5. 51 trillion when September began; by the end of 2008, it had risen to $6. 37 trillion.

The build-up in government debt as a share of GDP between 2007 and 2014 will be second only to Japan's.

Japan was the second-largest foreign holder of American government debt, with $882 billion in Treasuries.

Italy owes about a quarter of all government debt in the euro zone. Its bonds are held by banks and insurers across the region.

Now the three-way charade appears to be boiling down to a dispute over government debt guarantees.

This recapitalization could be financed by taxes or by monetizing government debt in another blow to the value of the currency.

High reserve requirements forced banks to lock up much of the economy's savings in safe asset classes like government debt.

NEW YORK (Reuters) - U. S. government debt prices were steady at lower levels on Monday following a $44 billion auction of two-year notes.

In Europe, the stock selloff focused initially on French banks with heavy holdings of troubled European government debt.

Government debt to gross domestic product is low (though the problem loans of the big banks should probably be included in the calculus).

At the zero lower bound, the impact of swapping short-term for long-term government debt is to reduce overall interest rates.

Government debt is dangerously wobbly in Italy and Spain, yet political approval of the deal has hit trouble in Germany and Finland.

Government-debt security with a coupon and original maturity of more than 10 years. Interest is paid semiannually.

In the years to come, owners of government debt will be the chief victims of this great monetary experiment.

The lack of certainty is being reflected by the continued gains in government debt despite yields at their lowest in years.

So why do foreigners own such a large share of US government debt?

In the next few years the International Monetary Fund expects Swiss gross government debt to fall below 50 per cent of GDP.

Government debt paper provides a benchmark yield against which private debt issues can be priced.

Rather than collapsing, the dollar has strengthened. Rather than rising sharply, interest rates on US government debt have fallen.

Chinese local government debt levels and their cooked books which make Greece look like a paragon of financial virtures.

The same logic applies to exploding government debt. We have moved into uncharted territory and are prisoners of psychology. Consider Japan.

One of the tests' key outcomes is that it unveils many banks' holding of government debt from European countries.

Treasury debt price fell as the improving economic outlook cooled appetite for safe-haven government debt.

Local government debt risk is the possibility of socioeconomic losses caused by local government debt in a variety of uncertain factors.

The agency says it sees weakening economic growth prospects for the nation, and higher-than-expected levels of government debt.

He sent a reassuring message to China, the largest buyer of US government debt, about his plans to cut the fiscal deficit.

This paper gave a deep analysis of the causes of local debt and the impact of risk factors from the status of local government debt risk.

By reducing the spectre of massive government debt, it would lift private confidence and unlock spending.

The European Central Bank reportedly intervened heavily in the bond markets again, by purchasing Italian and Spanish government debt.

The convention is to use the yield on local government debt as the risk-free rate, which has a beta of zero.

As concerns grow that Greece may default on its government debt, economists are starting to map out possible outcomes.

The bigger fear of traditional funding providers, given eurozone banks' exposure to government debt, is contagion, however.

The ECB would favour a targeted programme involving corporate bonds or commercial paper, rather than buying government debt.

The move signals what could be a big shift by financial institutions away from US government debt into higher- yielding assets.

There were concerns this spring that mounting government debt in countries like Greece, Spain and Portugal would stagnate Europe's economy.

China has a manageable local government debt problem, which it has already started to address.

That is largely reflected by the fact that government debt has become the triple A asset of choice since the credit crisis.

Beijing cannot simply press a button and switch from easy government debt holdings to complicated direct investment overseas.

Spreads also rose substantially for bonds issued by Portugal and Ireland, but only slightly for Italian and Spanish government debt.

Government debt, after all, has soared to levels not seen in peacetime for centuries, if ever, in many countries, not least the US and UK.

As the banks wobbled, economies slipped into recession and government debt levels soared.

The 1998 Russian financial crisis resulted in a devaluation of the ruble and default on Russian government debt.

With almost all assets except government debt falling in value, shareholders wondered whether Aviva had enough capital.

Almost half of outstanding U. S. government debt is held by foreigners, and recent Treasury data shows demand has slipped in recent months.

The combination of stubbornly high unemployment and growing government debt will not play well.

The policies especially affect China, given that it holds billions of dollars in government debt.

America simply cannot afford more pump-priming, he argues, with a deficit of 9% of GDP and government debt approaching 100% of GDP.

Current estimates are that the U. S. government debt stands at $14 trillion.

Perhaps the most stunning message from crisis history is the simply staggering rise in government debt most countries experience.

GOVERNMENT debt dynamics, once an esoteric subject of interest only to macroeconomists, are suddenly in vogue.

Finally, an example about government debt stabling problem illustrated the validation of this algorithm.

The first recorded instance of a government debt default occurred in Greece.

But these bailouts are risky -- as reflected in the high cost of insuring government debt.

Moody's said it acted because of Japan's large budget deficits and buildup in government debt since the two thousand nine global recession.

China could buy more government debt from European countries, its ambassador to the European Union said Thursday.

Treasury prices slid, boosting the corresponding yields, as investors sought safety in government debt.

At the end of last year, private investors in the United States held the largest share -- thirty-six percent of that government debt.

As early as the county and township government debt has become a prominent political and economic issue.

The two countries' economies are intertwined and China owns more American government debt than anyone else.

One example not to follow is Japan, which has suffered a long period of stagnation accompanied by ever-rising government-debt-to-GDP ratios.

It rankles those, in Germany and like-minded societies, who see it as tantamount to monetizing government debt.

Xia pointed to examples of such diversification, saying China has added more Japanese government debt and other non-dollar assets.

Financial markets were rattled by the data and investors sold stocks in favour of safe-haven government debt.

Prices for U. S. government debt rallied on the inflation data, which underscored tame price pressures amid the slack in the economy.

These tactics help the weekly government-debt auctions go with a swing.

It would be, potentially, the first central bank to buy Chinese government debt as a secure reserve.

He again noted his August "mistake" on betting heavily against the price of U. S. government debt.

Nicolas Sarkozy has emphasized the importance of a staff reduction to ease the pressure of government debt.

They must now regret having invested their savings abroad in American subprime mortgages and Greek government debt.

Unfortunately, the new Republican initiative would worsen government debt problems, according to the Congressional Budget Office.

If the recovery were to deteriorate, the Fed could revive programs to buy mortgage securities or government debt.

The bail-out's failure was immediately apparent in the spreads of Irish, Portuguese and Spanish government debt over German bonds.

Italian government debt is about one hundred twenty percent the size of the country's economy.

The desperation was especially striking in the market for U. S. government debt, long considered the safest of investments.

China has finally overtaken Japan as the largest foreign holder of US government debt.

In recent months China-watchers have started worrying that the country's local-government debt is a ticking time bomb.

The price of protecting five-year government debt against default has leapt by a quarter.

European banks are under state pressure "voluntarily" to roll over or re profile their holdings of Greek government debt.

as a result, its government debt is owed mostly to its own citizens.

What will be the effect on long-term growth of the increase in government debt incurred by the fiscal stimulus?

Asian bond yields tend to be much higher than the "risk-free" interest rate on US government debt.

China does face a host of risks, including a property bubble, mounting local government debt and potential rises in bad loans.

The second: Government debt is the safest investment, and thus provides a cornerstone for setting pricing across riskier asset classes.

However, some economists still believe that buying US government debt is "a low-risk option" .

U. S. stocks closed sharply lower after the Fed's announcement, while prices for long-term government debt rose, pushing yields lower.

Government debt is assumed to provide zero default risk as well as zero liquidity risk.

But what are the implications for the other holders of government debt?

The quality of Greek government debt is now rated at "junk" levels.

Japan was already struggling to rebuild economic growth and reduce its budget deficit and government debt.

By law it can accept only government debt or its closest equivalents as collateral when it supplies cash to the money markets.

These risks include an explosion in domestic government debt directly and contingently through the banking system.

Still, such moves can soak up only so many dollars and no other market rivals the depth and liquidity of US government debt.

Perhaps Beijing's willingness to assume a portion of local government debt shows the political will to act decisively.

Worries about how European government debt might drag down a global recovery halted a four-day winning streak Tuesday.

The second broken taboo is the notion that there can be no restructuring of government debt.

The Bigger Debt Problem: China's Local Government Debt vs. US Subprime Debt originally appeared in the Daily Reckoning.

Local government debt is the latest smoking gun for those predicting China's economy will eventually run aground.

A tentative recovery would keep the lid on demand for riskier assets and keep safe-haven government debt in favor with investors.

Here are five reasons to stop worrying about Chinese government debt.

Americans are right that government debt is a serious long-term problem. But growth is a serious short-term problem.

China is the largest foreign buyer of U. S. government debt, while the United States is a vital trading partner for China.

Even with the revised numbers, China still owns a little less US government debt than the Fed itself.

But in some ways what may be good for the Japanese economy could prove harmful to the market for government debt.

U. S. financial markets were little moved on the data. Stocks rose, while government debt prices fell modestly.

Barclays Capital estimates that banks in Britain and America have each bought around $240 billion of government debt over the past year.

Similar fears are building in Spain and Portugal, where concerns about government debt are mounting.

Competition for capital is bound to increase in that time, given the coming torrent of government-debt issuance.

And legendary short seller Jim Chanos says China's local government debt is worse than America's subprime problem.

In a paper prepared for the forthcoming G20 summit, the IMF sets out new forecasts for government debt.

Fed officials question whether government debt fears explain the rise in yields when there has been little new news on funding needs.

Aside from each country's domestic investors, buyers of European government debt remain scarce.

Already, however, investors are asking what will happen when the Fed stops being the dominant buyer of US government debt.

In many countries, government debt remains low as a percentage of GDP.

He has committed to reducing government debt, yet wants to cut taxes and increase spending on a range of sectors.

And high demand for government debt rather than corporate debt could stifle economic growth.

China reduced its holdings of US government debt by the largest margin in nearly nine years in June, according to data from the US Treasury.

To avoid defaulting on U. S. government debt, the Treasury would probably make a $29 billion interest payment to bondholders on Aug.

Japan is the most indebted developed economy in the world, with a government debt that at the end of 2008 ran to 170% of GDP.

And better growth prospects will, themselves, make government debt less onerous.

Another economic crisis may result from insupportable levels of government debt.

Europe's crisis is rooted in deep worries about government debt and economic imbalances inside the euro zone.

Fiscal policy, which splurged in past years, must now be tightened to preserve a legal limit on government debt.

This makes sense in the short term; the appetite for government debt is vast, and expands at times of financial crisis.

He also reiterated that the Fed was considering buying longer-term government debt.

Eighty-five per cent of the proceeds from each sale go to the occupant of the building and the rest is used to pay off government debt.

China has recently increased its holdings of Korean government debt sharply, causing a stir in that market.

But cashing in its gold would barely make a dent in Portugal's government debt, which represents 93% of GDP, according to IMF data.

That in turn will undermine the value of government debt and push up yields as investors demand more compensation for risk.

Rising health-care and pension spending will put relentless pressure on government debt.

Its national government debt has soared to more than 200% of its national output.

This week, Moody's Investors Service lowered its credit rating for Japanese government debt.

A popular rule of thumb for a "safe" level of government debt in a rich economy is 60% of GDP.

He added that tackling high levels of government debt will be a priority for many governments.

Japan, with the world's highest government-debt burden and short maturities, must raise funds worth more than 50% of GDP by the end of 2011.

Bonds ticked lower as stocks jumped, easing demand for the safety of government debt.

Government debt held by the public, excluding obligations to Social Security, totals about $5. 5 trillion.

The contract for August delivery traded on Comex fell 8. 1% last week on concerns about U. S. growth and government-debt problems in Europe.

Local government debt is the main component of the government public debt under the state grated tax for different levels financial system .

Seigniorage is really a tax on holders of money and government debt which is paid via inflation.

US moves to augment the supply of government debt have raised credit concerns among central banks.

A check of modern history will show that most countries have experienced a government debt crisis.

Economists have another term to describe the monetization of government debt.

Australia, like China, has a very low ratio of gross central government debt to GDP.

But Wen tied those growth forecasts to concern over China holding vast amounts of U. S. government debt.

The private investor gets to magnify the returns six times with government debt guarantee.

Financial market types worry about selling government debt; but this is not the true limit.

All these factors should have lowered the price of US government debt, pushing long-term interest rates higher.

The euro crisis is primarily a banking crisis, secondarily, a government debt crisis.

The problem is simple: bailouts and stimulus plans are funded by issuing more government debt.

Experience also shows that a downgrade doesn't have to be catastrophic for government debt.

Both BNP and SocGen also detailed manageable exposures to Greek government debt.

As a result, Japanese investors may be content to park their money in Japanese government debt for safe keeping.

During Japan's 20-year adjustment period banking stability was largely maintained but government debt levels soared.

In addition to the enormous government debt weighing on periphery countries, investors worry that banks could face big losses.

But under the crazy growth of local government debt financing, its hidden risks have gradually emerged, which is worthy of our attention.