debt-financed

The message on Thursday was that the debt-financed era into which Rio plunged with Alcan was over.

While some stimulus is called for, we cannot spend our way into economic prosperity, especially when all new spending is debt-financed.

Think of it this way: private demand in the debtor countries has plunged with the end of the debt-financed boom.

When markets wobbled, central banks slashed interest rates. A by-product of this policy was a series of debt-financed asset bubbles.

The US could then maintain its recovery only by continuing to run large budget deficits and again tolerating debt-financed consumer demand.

They pursued aggressive debt-financed growth strategies, dabbled recklessly in derivatives and received regular bail-outs.

The willingness to contemplate big debt-financed acquisitions is a sign of the change in outlook.

The same is true of creating jobs through a debt-financed economic stimulus.

However, we're not going to close the shortfall by encouraging debt-financed consumer spending.

This special report will argue that, for the developed world, the debt-financed model has reached its limit.

That implies greater risks, especially where their acquisitions are debt financed.

There are many countries where loose monetary policy has stimulated the economy through debt-financed consumption.

The evidence is clear that the clean-up costs after debt-financed bubbles are too high.