2019-12-28 09:36:00 Sat ET
treasury deficit debt employment inflation interest rate macrofinance fiscal stimulus economic growth fiscal budget public finance treasury bond treasury yield sovereign debt sovereign wealth fund tax cuts government expenditures
Global debt surges to $250 trillion in the fiscal year 2019. The International Institute of Finance analytic report shows that both China and the U.S. account for at least 60% of this sharp increase in global debt. In particular, global public debt increases from $65 trillion to $70 trillion in 2019, and this increase arises primarily from the recent surge in U.S. federal debt. This latter public debt accumulation results from the recent Trump tax cuts and infrastructure expenditures.
Meanwhile, the current low-interest-rate environment makes it extremely easy for public corporations and sovereign wealth funds to borrow more money worldwide. Total government debt represents more than 2.5 times annual real GDP in China. Low long-run government bond yields and high corporate debt mountains continue to be red alerts for the next recession in several economies such as Britain, France, Germany, Japan, Italy, and Spain. The monetary authority cannot sustainably fund fiscal deficits via new public bond issuance without an eventual increase in money supply growth or price inflation. When push comes to shove, an inflationary shock above the 2% target may tilt the central bank response toward a hawkish monetary policy emphasis on price stabilization.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2018-07-19 18:38:00 Thursday ET

Goldman Sachs chief economist Jan Hatzius proposes designing a new Financial Conditions Index (FCI) to be a weighted-average of interest rates, exchange rat
2023-06-19 10:31:00 Monday ET

A brief biography of Dr Andy Yeh (PhD, MFE, MMS, BMS, FRM, and USPTO patent accreditation) Dr Andy Yeh is responsible for ensuring maximum sustainable me
2019-06-01 10:33:00 Saturday ET

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company. HuaWei can
2017-12-17 11:41:00 Sunday ET

Warren Buffett points out that it is important to invest in oneself. Learning about oneself empowers him or her to lead a meaningful life. This valuable inv
2017-03-03 05:39:00 Friday ET

As the biggest IPO since Alibaba in recent years, Snap Inc with its novel instant-messaging app SnapChat achieves $30 billion stock market capitalization.
2022-05-30 09:32:00 Monday ET

The new semiconductor microchip demand-supply imbalance remains quite severe for the U.S. tech and auto industries. Our current fundamental macro a