The double-digit increases will mean a financial hit for taxpayers in general, as well as some of the 393,322 Michiganders who currently buy individual health insurance on or off the government-run exchange.
The global oil industry needs an astronomic investment injection over the next two decades or risk jeopardizing it’s ability to meet future oil demand, the Organization of the Petroleum Exporting Countries warned on Tuesday.
Over the next two years, more than 220,000 low-income borrowers who have already defaulted on their student loans will default again, according to projections released by the Consumer Financial Protection Bureau Monday, unless policy makers take immediate action. This group represents about one-third of the 650,000 federal student loan borrowers who made the minimum payments necessary to cure their defaults in the last year.
Spain’s next government will have to find 5 billion euros ($5.6 billion) in extra revenues or spending cuts to meet its deficit targets in 2017, according to the country’s budget plan, at a time of unprecedented political instability.
In Alaska, poster child of oil-dependent states, lawmakers spent two contentious summer legislative sessions debating how to cover a $4 billion budget deficit. They weren’t alone: Plunging oil prices have drilled holes into state budgets — $2 billion in Louisiana, $1.3 billion in Oklahoma, $1.3 billion in North Dakota — that left lawmakers bickering over how to close the gaps.
While the yield on the 30-year German bond doubled since July to 0.68 percent on Tuesday, Poland is hoping the extra yield it’s offering will stir interest even as the east European country’s growth outlook has soured amid rising economic-policy risks.
“Basically, it’s Enron-style accounting for government,” Williams said. “If you’re an executive in the private sector, and you used the kind of accounting used by state and local governments, you’d be in jail today.” Williams said the $362 billion is the second worst pension debt in the country. Only California is worse.
Venezuela’s economy and finances have been decimated by the collapse in oil prices, leaving the government struggling to find enough hard currency for imports of basic necessities and debt payments. The company’s president, Oil Minister Eulogio Del Pino, said in an interview last week that that the deal was critical for PDVSA and that officials would be “evaluating all options” if they couldn’t persuade enough investors to accept the terms.
Russia’s government is easing the debt burden of defense companies, jettisoning the 2016 deficit target as the nation’s relations deteriorate with the U.S. and its allies.
“But the truth is, central banks will change monetary policy — and if I’ve bought a German bond earning zero percent, and yields go back to around 4 percent — which is about where they should be when we have 2 percent inflation again — the price loss will be more than 25 percent.”
If yields of outstanding bonds climb 1 percent across the board, the value of outstanding government bonds would drop by an estimated ¥67 trillion, or 13.5 percent of nominal gross domestic product in fiscal 2015, according to the ministry.
Deflationary forces have abated amid firming commodity prices and a sustained labor-market improvements, contributing to a recent sell-off in many developed-market sovereign bonds. Calls for expansionary fiscal policy to buoy growth going forward have also helped shift the mood.
China’s debt has soared to 250 percent of GDP and the Bank for International Settlements (BIS) warned in September that a banking crisis was looming in the next three years.
“It’s more of the same: more yuan lending, more debt, no real increase in M2 growth and a much larger rise in M1 growth,” said Michael Every, head of financial markets research at Rabobank in Hong Kong. “It screams ’Liquidity trap!”
A 1-per-cent increase in interest rates could inflict a $1.1-trillion (U.S.) loss to the Bloomberg Barclays U.S. aggregate index, analysts at Goldman calculate, representing a larger loss for bondholders than at any other point in history.
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