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The Economist (September 15)

2018/ 09/ 17 by jd in Global News

“Debt stalks Africa once again. Over the past six years sub-Saharan governments have issued $81bn in dollar bonds to investors hungry for yield. Piled on top of this are murkier syndicated loans and bilateral debts, many to China and tied to big construction projects. Public debt has climbed above 50% of GDP in half the countries in sub-Saharan Africa. The risk of a crisis is growing.”

 

Barrons (August 13)

2018/ 08/ 15 by jd in Global News

“Turkey makes up less than 1% of the emerging markets index, but its small size hasn’t kept it from creating big ripples during the dog days of summer. Most investors are steering clear of Turkey, as it grapples with the fallout from years of binging on dollar-denominated debt, but the bigger question is who else could get caught up in Turkey’s crisis.”

 

Institutional Investor (March 22)

2018/ 03/ 25 by jd in Global News

“In 2017, private equity and private debt funds raised $560 billion, 10 percent above what was raised the year before. Real estate investors, however, got the message that valuations may be stretched. Fund raising for property declined to a level last seen in 2013.”

 

Washington Post (February 13)

2018/ 02/ 14 by jd in Global News

President Trump released his very own “comic book” in the form of a budget. Candidate Trump boasted “he would ‘get rid of the $19 trillion in debt . . . over a period of eight years,’” but his budget would add $7 trillion to the debt over a decade — $2 trillion in the next two years alone — and even those numbers are based on the peculiar assumption that the economy will never again go into recession.” That’s only the beginning. His comic-book budget goes onto shred many of the bold promises Trump once made.

 

The Guardian (July 17)

2017/ 07/ 18 by jd in Global News

“Desperate with hope,” many Brits are “drawn to the crescendo of signals that Brexit can’t and won’t happen, to stories that say the sheer impossibility of leaving the EU gets clearer by the day.” The signals are everywhere. “Fall off the EU cliff and put a third of our just-in-time food supply at risk. No flying to the EU, warns Ryanair, as easyJet moves its new HQ to Austria….car sales are down 10%, credit card debt up 10%, wages are falling behind rising inflation.” Yet even as the UK’s economy “sinks, while the EU’s charges ahead,” there is no guarantee that Brexit will ultimately prove reversible.

 

Chicago Tribune (April 24)

2017/ 04/ 25 by jd in Global News

President Trump is now talking about “a ‘massive tax cut’ for businesses and individuals.” He even said it would likely be “bigger” than “any tax cut ever.” Simplistic boasts may be exciting, but they are dangerous. “Here’s the thing: Trump, who used the word ‘massive’ 12 times in that AP interview, forgot to mention a huuuuge caveat about tax reform efforts: They are devilishly difficult to pull off. Cutting taxes without adding trillions to the federal debt is especially hard to do.”

 

CNBC (October 6)

2016/ 10/ 07 by jd in Global News

“The world is awash with $152 trillion dollars of debt, according to the IMF, an all-time high which sits at more than double the balance at the start of this century.” In 2002, debt represented 200% of global GDP. At the end of 2015, this figure had risen to 225% and “signifies the extent to which increases in borrowing have outpaced economic growth during the period.”

 

Reuters (September 1)

2016/ 09/ 04 by jd in Global News

“Activity in China’s manufacturing sector unexpectedly expanded at its fastest pace in nearly two years in August as construction boomed, suggesting the economy is steadying in response to stronger government spending.” The strong performance “may reinforce growing views that China’s central bank will be in no hurry to cut interest rates or banks’ reserve requirements, for fear of adding to high debt levels or fuelling asset bubbles.”

 

Financial Times (June 7)

2016/ 06/ 09 by jd in Global News

“Given today’s high level of public sector debt and worsening demographics, it is inevitable that governments will resort to soft forms of default, including inflation, to escape from their fiscal straitjacket. This is a world in which elderly savers will be condemned to subsidise borrowers for a long time.”

 

Financial Times (May 20)

2016/ 05/ 22 by jd in Global News

“The plunge in yields on corporate and sovereign bonds in Europe and Asia — the value of bonds with a negative yield is nearly $10tn, according to Fitch — has sent investors racing into the US market.” This surging demand “has allowed companies to issue debt at lower yields, though US yields are still more attractive than in other parts of the world.”

 

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