Savings
in sentence
1605 examples of Savings in a sentence
The neighboring Middle East is in turmoil; the West is attempting to contain a newly aggressive Russia; and China, already the world’s largest source of savings, the largest trading country, and the largest overall economy (in terms of purchasing power parity), is confronting the West with new economic and strategic realities.
Lacking in saving and wanting to grow, America must import surplus
savings
from abroad.
While this shortfall has narrowed from a peak of 5.8% of GDP in 2006 to 2.4% in 2014, it still leaves the US heavily dependent on surplus foreign
savings
in order to grow.
The US does not just pluck surplus foreign
savings
out of thin air.
Without fixing its
savings
problem, restricting trade with a few so-called currency manipulators would simply redistribute the US trade deficit to its other trading partners.
Lacking any semblance of a strategy to boost
savings
– not just a long-term fix to the federal government’s budget deficit, but also meaningful incentives for personal saving – US politicians have turned to yet another quick fix.
With a high household
savings
rate of around 30% of disposable income, per capita disposable income amounts to roughly half of per capita GDP.
Accelerating the expansion of state-funded social security could bring down household
savings
over time.
Such an integrated energy market would lead to significant
savings
– estimates go as high as €40 billion ($51 billion) annually by 2030 – thereby providing a much-needed competitiveness boost.
A
savings
surplus in Germany is recycled to Spain mainly through interbank lending (German to Spanish banks).
To this litany of concerns we can add the fear of borrowers that the massive American deficits would drain the supply of global savings, and worries of holders of US dollar reserves, that America may be tempted to inflate away its debt.
Domestic savings, however, remain a major constraint.
Earmarking of taxes caused current expenditures (especially on social-security benefits) to increase along with revenues, reducing the scope for a higher public-sector contribution to domestic
savings.
The housing bubble induced Americans to live beyond their means – net
savings
has been negative for the past couple of years.
No wonder global real interest rates are so low, with high post-crisis
savings
chasing a smaller supply of investment opportunities.
When the excess demand is for longer-term assets – bonds to serve as vehicles for
savings
that move purchasing power from the present into the future – the natural response is twofold: induce businesses to borrow more and build more capacity, and encourage the government to borrow and spend, thus bringing the supply of bonds back into balance with demand.
It also became dependent on China’s
savings
surplus to finance its own
savings
shortfall (the world’s largest), and took advantage of China’s voracious demand for US Treasury securities to help fund massive budget deficits and subsidize low domestic interest rates.
China’s rebalancing will enable it to absorb its surplus savings, which will be put to work building a social safety net and boosting Chinese households’ wherewithal.
Add to that China’s other strengths – annual GDP of over $10 trillion, a growth rate at least four percentage points higher than the global average, $3 trillion in foreign-exchange reserves, a
savings
rate of 40% of GDP, and a massive trade surplus – and an exchange-rate crisis seems highly unlikely.
As a result, the household sector has now shrunk to 35% of GDP, and its forced
savings
are no longer sufficient to finance the current growth model.
In the US there are three national agencies that regulate commercial banks, one that regulates
savings
institutions, one that regulates credit unions, one that regulates securities markets, one that regulates commodity and financial options/futures markets, and two that regulate pension funds.
In addition , the 50 American states each have separate bank regulators (with overlapping jurisdictions with the national regulators), most have
savings
bank regulators, all have credit union regulators, all have insurance regulators (which is solely a state responsibility), and all have securities regulators.
The second cost is implicit, but potentially far more substantial: because sterilization bonds are forced
savings
(and deflationary by definition), they absorb the potential investment and consumption implied by today’s trade surplus.
These needs should be covered mostly by long-term, low-interest-rate loans from China, Europe, and the US, as well as by mobilizing African countries’ long-term
savings
(through, for example, the introduction of new pension systems).
Then came East Asia, which had high
savings
rates, so the new explanation was “governance.”
Instead, they need to be part of a convincing overall plan that combines responsible state intervention with relief of the financial burdens of individual citizens, as well as
savings
in public budgets.
One approach will blame lax regulation, accommodating monetary policy, and inadequate
savings
in the United States.
Note the one thing on which members of both camps agree: the global
savings
imbalance – low
savings
in the US and high
savings
in China and other emerging markets – played a key role in the crisis by allowing Americans to live beyond their means.
Income growth and a lower household
savings
rate are essential to the shift in China’s growth model, and each presupposes key reforms.
Likewise, increasing the interest rates paid on bank deposits would enable
savings
to decline without loss of income.
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