As interest rates fell in recent years, there was a push into emerging markets debt, but as worldwide central bank stimulus reduces, many of these ’emerging’ countries are showing why they are poorly rated.
Tag Archives | government debt
The fundamentals point toward bankruptcies of major sovereigns like the US and Japan in the next decade. The after effects could be catastrophic on all major asset classes. It’s time to discuss the makeup and costs of insurance.
As it became obvious that Australia would need to default on its government debt in the 1930s, the question of whether to prioritise foreign or local debt was put to the people, with surprising results.
Very few people realise that Australia once defaulted on its sovereign debt during the Great Depression. Learn how the split between local and foreign currency debt affects the policy options available to Governments.
Recent developments in China’s credit and property markets could lead to a slowdown in the country’s economic growth. If this happens there would be significant implications for global investors.
In the second part of our Labor v Liberal series, we look at Australia’s level of government debt since Federation. Our current debt level is low when compared to national income and the rest of the world.
When comparing the fiscal disciplines of left- and right-leaning parties, do the stereotypes prevail? This first part of a three-part series looks at which parties have produced more federal surpluses and deficits.
If we expect government policies to deliver implausible growth when a demographic tailwind has become a headwind, we’ll have temporary ‘growth’ with debt-financed consumption, with longer term adverse consequences.
Tapering is the rate at which pensions reduce as other sources of income increase. A change is unlikely to make it onto Joe Hockey’s list of pensions amendments in the upcoming budget.
Australia in 2014 is the lowest taxed nation in the developed world. Facing ten years of budget deficits, is the Abbott Government unwilling to raise tax rates, or will Joe Hockey make us share the pain come budget time?
An article in November 2013 suggesting death duties be considered as a public finance tool attracted some strong criticism, and in the context of the need to fund ever-increasing deficits, the author defends his views.
Buying long-term bonds at yields below historical inflation rates is asking for trouble, despite the recent rises in bond rates. Even QE policymakers have their doubts.
Australian 10 year bond rates, once yielding 5% less than PIIGS countries Italy and Spain, are now trading at the same rates. Surely we are not squealing down at their level.
In theory, improving prospects for economic growth and company earnings should be good for share prices. Nice theory, but not in the real world.
With such political uncertainty in the US, it’s one of those times when “I don’t know” should be a more common response from commentators and analysts. They’re too dismissive of the potential for poor outcomes.
It’s easy to forget how severe the GFC was in destroying confidence and locking up markets. There was a genuine fear that the world was such a toxic place that no credit could be trusted.