Borrowing
in sentence
1116 examples of Borrowing in a sentence
In an era of still-large US budget deficits – likely to go even higher in the aftermath of Trump administration tax cuts and spending initiatives – the lack of demand for Treasuries by the largest foreign owner could well put upward pressure on
borrowing
costs.
For weeks, Republicans in the House of Representatives threatened to keep the government shuttered – thereby preventing it from extending its
borrowing
authority beyond the October 17 deadline – in order to challenge laws that were enacted by Congress as a whole and upheld by the Supreme Court.
We know that pre-crisis demand was boosted by massive amounts of
borrowing.
When
borrowing
becomes easier, it is not the well-to-do, whose spending is not constrained by their incomes, who increase their consumption; rather, the increase comes from poorer and younger families whose needs and dreams far outpace their incomes.
So, as lending dries up,
borrowing
households can no longer spend, and demand for certain goods changes disproportionately, especially in areas that boomed earlier.
Indeed, because the pattern of demand that is expressible has shifted with the change in access to borrowing, the pace at which the economy can grow without inflation may also fall.
The largest of the BRICS, China, faces additional risk stemming from a credit-fueled investment boom, with excessive
borrowing
by local governments, state-owned enterprises, and real-estate firms severely weakening the asset portfolios of banks and shadow banks.
All have flexible exchange rates, a large war chest of reserves to shield against a run on their currencies and banks, and fewer currency mismatches (for example, heavy foreign-currency
borrowing
to finance investment in local-currency assets).
A speculator can “short” a government by
borrowing
its debt at its current price, in the hope of selling it later at a lower price and pocketing the difference.
If the attack persists, speculators can force a government to default on its debt, unless it can find a way to finance its
borrowing
more cheaply.
For example, Professor Jeremy Bulow of Stanford University and I have shown that by endowing the World Bank with $100 billion dollars, it could carry out the tasks that it performs best more effectively and with greater transparency than it does today through
borrowing
and lending.
While both interest-rate liberalization and deleveraging are critical to the long-term health of China’s economy, the skyrocketing cost of
borrowing
is forcing many low-risk companies, which are unable to offer sufficiently high rates of return, out of the market.
The idea of coordinated fiscal stimulus became problematic when it became obvious that many European governments could not take on more debt without unsettling markets and pushing themselves into an unsustainable cycle of increasingly expensive
borrowing.
But I fear that change might cause a global economic crisis resulting from, say, an ugly unwinding of extravagant US
borrowing
trends.
According to SAFE, as of February 2012, China had accumulated $4.7 trillion in foreign assets through purchases of United States government securities and other investments, and more than $2.9 trillion in foreign liabilities through foreign direct investment (FDI) and
borrowing.
The US economy has been sustained by a consumption boom fueled by excessive borrowing, and that will be curtailed.
Third, government could assume part of a mortgage, taking advantage of its lower
borrowing
costs.
And it announced its intention to slow local governments’ seizures of farmland and excessive
borrowing
through captive enterprises.
For a while,
borrowing
hid the extent of the problem; but today the extent of the burden that the accumulated debt that resulted from this
borrowing
is placing on future generations - a grave injustice in its own right - is clear.
All that
borrowing
implies a large balance-of-payments deficit with the rest of the world, which spawns an equally large trade deficit.
As domestic saving plunges, the US has two options – a reduction in investment and the economic growth it supports, or increased
borrowing
of surplus saving from abroad.
Second, some vehicle – the IMF or the European Financial Stability Facility, with either entity funded directly by countries or the European Central Bank – has to stand ready to fund
borrowing
by Italy, Spain, and any other potentially distressed countries over the next year or two.
Banks are not
borrowing
as much; they have more capital; and they have far more stable and liquid sources of funds to lend.
Seeking to boost economic growth, the authorities may soon destroy their one great advantage: the low rate of interest on government debt and private
borrowing.
With a debt/GDP ratio of 230%, a four-percentage-point rise in
borrowing
costs would cause the annual deficit to double, to 20% of GDP.
The excess of saving over investment has given Japan a current-account surplus, allowing the country to finance all of the government
borrowing
domestically, with enough left over to invest in dollar-denominated bonds and other foreign securities.
The extra four cents per dollar is paid for, in essence, by
borrowing
from abroad.
Consider Greece, where the government is planning a return to the capital markets in the coming months to finance the country’s long-term
borrowing
needs, even though securing such financing would require paying unsustainably high interest rates.
A banking union is an important start, which should prevent financial markets from fragmenting along national lines and reduce private-sector
borrowing
costs.
The argument is simple: All economies have both borrowers and savers, and changes in the cost of
borrowing
(or the return to saving) affect them differently.
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