Debts
in sentence
1153 examples of Debts in a sentence
Eventually, these
debts
will become unsustainable.
Depreciation inside the eurozone in the form of deflation, on the other hand, would drive large parts of the real economy into excessive debt, because only the value of assets, not that of bank debts, would decline.
But high-return public investments that more than pay for themselves can actually improve the well-being of future generations, and it would be doubly foolish to burden them with
debts
from unproductive spending and then cut back on productive investments.
Neglecting the problem of entry into the labor market could backfire by increasing pressure for more public expenditure just when governments should start reducing the huge public
debts
accumulated during the recession.
The US current-account deficit, meanwhile, would remain largely unchanged: the tax would put money into government coffers, but the US would continue to run up
debts
abroad.
It is also implausible that Germany would offer to enter into a eurozone fiscal union that entails pooling its
debts
with Italy’s.
In addition to stronger demand in the eurozone, Italy desperately needs bold leadership – to restructure its banks, write down unpayable corporate and household debts, reform its economy, boost investment, and clean up its politics.
Germany is demanding that Greece continue to service its
debts
in full, even though Greece is clearly broke and the International Monetary Fund has noted the need for debt relief.
Sovereign
debts
have been restructured hundreds, perhaps thousands, of times – including for Germany.
Second, Greece should continue to withhold service on its external
debts
to official creditors in advance of a consensual debt restructuring later this year.
Even basic elements of business organization – like limiting public shareholders’ obligation for corporate
debts
– are said by Brazilian legal experts, such as Bruno Salama, to remain an open question, with all shareholders potentially exposed, especially in labor and tax lawsuits.
All of them made every mistake imaginable, then wrote off or reduced the
debts
owed to them.
Of the 12 members of the eurozone in 2001, only two (Finland and Luxembourg) have public
debts
of less than 60% of GDP to compare with nine of the ten new eastern members.
The deflationary impact of internal devaluation is compounded by the rule, reinforced in the 2012 “fiscal compact,” that eurozone countries are wholly responsible for their own
debts
and thus must adopt strict budgetary discipline.
Making matters worse, governments can be tempted to inflate their
debts
away – a power that has been abused since the age of monarchs, resulting in a uniform inflation tax on asset holders.
But large public
debts
are not always bad for an economy, just as efforts to rein them in are not always beneficial.
Meanwhile, fiscal policy is constrained by the rise of deficits and debts, bond vigilantes, and new fiscal rules in Europe.
As a result, dealing with stock imbalances – the large
debts
of households, financial institutions, and governments – by papering over solvency problems with financing and liquidity may eventually give way to painful and possibly disorderly restructurings.
The cause of the latest currency turmoil is clear: In an environment of private and public deleveraging from high debts, monetary policy has become the only available tool to boost demand and growth.
What is needed is not more sophisticated statistical methods, but serious historical analysis of the political and economic particulars of specific historical cases in which countries were burdened with heavy
debts.
Of course, a breakup now would be very costly, requiring an international debt conference to restructure the periphery’s
debts
and the core’s claims.
On the other hand, if the ECB preferred to let major countries, such as Italy, default on their debts, this would likely weaken the euro even further, as investors feared a contagion of defaults.
Ireland, Belgium, Italy, and the United Kingdom are still under threat, owing to large public
debts
or current-account deficits.
Eager to borrow their country to prosperity, they racked up enormous
debts
while presiding over a dramatic loss of competitiveness and, thus, growth potential.
Some Western investors foresaw a banking crisis, owing to enormous bad debts; others expected that President Xi Jinping, having consolidated his political position, would introduce structural economic reforms.
Most of the debt is owed within the state system – for example, by state-owned enterprises (SOEs) to state-owned banks – and the government could simply write off bad
debts
and recapitalize banks, financing the operation with either borrowed or printed money.
Alternatively, the banks could perpetually roll over existing debt, forever extending new loans to repay old
debts.
The enormous program of quantitative easing that Draghi pushed through, against German opposition, has saved the euro by circumventing the Maastricht Treaty’s rules against monetizing or mutualizing government
debts.
While trade and investment ties with China helped boost the continent’s overall economic growth to a record-high 5.2% in 2005, China also cancelled $10 billion in bilateral
debts
from African countries.
The problem with this argument is that governments are rarely faced with having to “pay off” their
debts.
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