Debt

It is the overall federal financial responsibility owed by the federal government to the general public and its own ministries. Congress has allowed deficit spending and tax cuts to continue, which has resulted in a massive increase in the national debt. The ability of the United States to repay its debt will be called into […]

There are a few things to keep in mind: First, the Federal Reserve, the nation’s central bank, does not produce money. Federal Reserve policies aim to encourage noninflationary economic growth by influencing the supply of money in the economy. Printing money to pay off the debt could lead to inflation unless there is an increase

Overspending was a major contributing factor in the current Greek debt crisis. It was in good financial health when Greece joined the European Union in the 1980s, but the situation deteriorated significantly during the next 30 years. From 2001 to 2008, the economy grew at a rapid pace, but so did expenditure and debt. Does

Debt and equity financing were compared in our last blog post. Today, we’re looking into why (and whether) debt is less expensive than equity.. A lot of people ask this type of question. Debt vs. equity is often used to compare the cost of financing; the additional capital is typically needed to fund expansion or

There are several pros and downsides to both debt and equity financing that we discussed in our last blog. Today, we’ll look at whether or not debt is less expensive than equity and why. A lot of people ask this type of question. Debt vs. equity is typically used to compare the cost of obtaining

Home mortgages, vehicle loans, school loans, and credit card debt are the four main sources of American debt. A little over $9 trillion of the $14 trillion in debt we cited can be attributed to mortgages. Low interest rates on car loans have contributed another $1.3 trillion to the total. A record $1.48 trillion in

Due to the government’s economic policies, Greece is in the midst of a debt crisis because of excessive expenditure. When Greece joined the European Union in the early 1980s, its financial status was sound. However, it worsened significantly during the next 30 years. From 2001 to 2008, the economy grew at a rapid pace, but

Japan will have the biggest public debt in the industrialized world by 2021, with an anticipated total of US$13.11 trillion ($1.4 quadrillion yen), or 266 percent of GDP. The Bank of Japan holds 45 percent of this debt. In 1991, Japan’s asset price bubble burst, causing a long period of economic stagnation known as the

Refinancing a country’s existing debt becomes more expensive when interest rates climb. Government services would eventually take a backseat to debt payments in the long run. Similar to Europe’s sovereign debt crisis, a situation like this might lead to a financial collapse. In the long run, investors are forced to raise interest rates because of

How and why do people fall into debt is a fascinating topic to contemplate. And what actually causes the financial difficulties that we have all had to deal with at one point or another. There is no doubt that debt may lead to devastating results; it can lead to the breakdown of a relationship, the