Carmen Reinhart and Kenneth Rogoff, two professors of economics, studied centuries of financial crises and panics, repeatedly coming to the same conclusion. “If there is one theme to the vast range of crises we consider,” they wrote in their book, “This Time Is Different,” “it is that excessive debt accumulation, whether it be by the government, banks, corporations or consumers, often poses greater systemic risks than it seems during the booms.”
East Cleveland’s unpaid bills have been piling up for years and so might its trash, Rumpke Waste & Recycling officials warned last week.
Rumpke notified East Cleveland officials last week it would discontinue trash collection service Thursday because of outstanding debt. According to the April 21 letter, the city owed $307,557 posted more than 31 days prior and $48,065 overdue Thursday.
Eight of Ohio’s 14 public universities have imposed or proposed tuition increases for next school year, despite a push from students to keep costs down.
But she also noted that the percentage of university graduates with student debt had risen to 60 percent in 2012, twice its level two decades earlier.
By the end of last year, more than 40 million people owed money for their college educations, and an increasing share of people are falling behind on their loans, Raskin said.
Wallethub also ignores Illinois’ massive debt — both the state’s $130 billion pension debt and the $6 billion in unpaid bills currently sitting at the state Capitol.
“The pension obligation debt is eight times all the bond debt for building roads and schools and everything else,” said Bob Williams, president of State Budget Solutions. “Essentially, the state has been living on credit cards.”
Valls acknowledged that the 50 billion euro cuts could have a dampening impact on France’s economic growth, but he argued that this could be offset “by a more active monetary policy” at the European level and a “more realistic exchange rate” for the Euro, which he said was “too high”.
That figure dwarfs the $145 million shortfall the state projected through March, leaving lawmakers scrambling for answers as the end of the fiscal year approaches June 30.
ECB President Mario Draghi last week identified a weakening of the euro zone inflation outlook and tensions in short-term money markets as potential triggers for fresh policy action.
The European Central Bank should do “everything it can” to tackle low growth and inflation but euro zone governments must also shape up their economies, a senior International Monetary Fund official said on Monday.
Making the pledge as he rallied key parliamentary support behind the Socialist government’s commitment to meet EU-designated fiscal targets, Mr Valls said Europe-wide growth initiatives must be matched by a more active monetary policy “because the level of the euro is too high”.
Gold & Silver
Provided daily by the Peak Prosperity Gold & Silver Group
Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."