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Liabilities in sentence

442 examples of Liabilities in a sentence

Deficits to finance wars or give-aways to the financial sector (as happened on a massive scale in the US) lead to liabilities without corresponding assets, imposing a burden on future generations.
Despite efforts to cut expenditures and boost tax receipts, current and prospective obligations (including pension liabilities) far exceed any feasible increase in government revenues.
The balance of assets and liabilities does not justify the gloom.
The bad news, though, is that the run-up of personal debt means that many households will be left with liabilities exceeding the value of their homes, implying a rising number of bankruptcies.
In inflationary periods, high outstanding government liabilities impair fiscal policy, because higher taxes are needed to finance the same level of real government spending.
Instead, they are determined by the country’s net wealth and the liabilities of the central bank and the government.
If bank assets amount to over 300% of GDP – more than $30 trillion – so, too, must the combination of bank deposits, bank bonds, wealth-management products, or other bank liabilities held as assets by companies or individuals.
If Germany and other creditor countries are unwilling to accept the contingent liabilities that Eurobonds entail, as they are today, they should step aside, leave the euro by amicable agreement, and allow the rest of the eurozone to issue Eurobonds.
The liabilities that it would incur by agreeing to Eurobonds are contingent on a default – the probability of which would be eliminated by the introduction of Eurobonds.
It did not seek to dominate Europe and is unwilling to accept the responsibilities and contingent liabilities that go with such a position.
By now the overall sum of credit via intergovernmental rescue operations and the ECB has reached €1.185 trillion (€707 billion in GIPSIC Target liabilities minus GIPSIC claims from under-proportional banknote issuance, €349 billion in intergovernmental rescue funds, including those from the IMF, and €128 billion in GIPSIC government bond purchases by non-GIPSIC national central banks; seewww.cesifo.org
It argues that, under the German constitution, the ECB is prohibited from making any decisions that impose potential liabilities on German taxpayers, because it is not subject to German parliamentary control.
But the EFSF’s founders did not take into account banks’ enormous short-term liabilities, which in a crisis effectively become government debt, as Ireland has been the most recent to demonstrate.
The EFSF might be just enough to guarantee the public debt of the four problem countries, but certainly not their banking sectors’ liabilities as well.
For example, the Spanish banking sector alone has short-term liabilities of several hundred billion euros.
Anyone who has studied economic performance since the onset of the financial crisis in 2008, understands that damage to balance sheets – such as excess debt and unfunded non-debt liabilities – can cause growth slowdowns, sudden stops, or even reversals.
Because deflation drives up the real burden of sovereign debt and public non-debt liabilities such as pension systems, its emergence would undermine the already fragile state of many countries’ public finances and kill growth.
But the bigger challenge is the unfunded non-debt liabilities in pension funds and social-security systems, which are estimated to be four times or more the size of sovereign debt.
It is clearly necessary to implement credible plans to arrest the growth of these liabilities.
But these liabilities also have to be reduced, because they are already imposing a crushing fiscal burden, largely owing to rapid aging, with rising longevity a major contributor.
A recent analysis for the US suggests that entitlements programs’ liabilities will hit the public budgets in about ten years.
Inflation would reduce the real value of both debt and other non-indexed non-debt liabilities.
Likewise, issuing more debt to cover the portion of liabilities coming due would merely shift the composition of liabilities without reducing them.
For sovereign debt, that means default, which will happen only in extreme circumstances; for non-debt liabilities, it means changing systemic parameters – for example, increasing the retirement age – which is contentious and exceptionally difficult to do politically.
Europe has a real chance to conclude a bargain: member countries implement fiscal and structural reforms in exchange for short-run relaxation of fiscal constraints – not to increase liabilities, but to focus on growth-oriented investments to jump-start sustained recovery.
If the government’s contingent liabilities are included, China’s debt/GDP ratio may be closer to 50%.
So what really matters is the composition of debts and liabilities – or, to put it simply, who owes what to whom.
If the US government had been compelled to abide by the same accounting rules as the private sector does, it would have been forced to consolidate Fannie Mae and Freddie Mac – the giant government-backed mortgage companies at the heart of the recent financial crisis – and to report all contingent liabilities at market value.
Borrowing in foreign hard currencies is particularly risky, as depreciation of the local currency can cause liabilities to surge.
A truly independent ECB, adhering to its own rules, should have refused to accept as collateral all debt liabilities guaranteed by the Greek state – government bonds, treasury bills, and the more than €50 billion ($56 billion) of IOUs that Greece’s banks have issued to remain afloat.
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