In an exclusive 'Your World' interview, the former Federal Reserve chief weighs in on the 2016 race, urges entitlements to be the central issue of the presidential debate.
Some 45 per cent of Japan’s households now include one person aged 65 years or more, government figures show, underlining how swiftly the country is moving towards a costly demographic inflection point.
With one of the highest per capita incomes of any state, Connecticut in 2013 owed $25.3 billion to its state employee and teacher pensions, $22.6 billion to its retiree health care program, and $19.6 billion in bonded debt. The combined debt of nearly $67.5 billion represented 30.2 percent of personal income
Gulf countries like Qatar largely don't have bankruptcy laws, leaving laid-off workers on the hook for huge outstanding sums while often banned from traveling outside of the country. That leaves many unemployed begging friends and family for help while frantically selling off all their belongings. Others have killed themselves out of desperation.
S&P Global Ratings is due to announce the results of its South African credit-rating review on Friday. Twelve out of 13 analysts surveyed by Bloomberg expect S&P to lower the nation’s ranking to below investment grade — or junk — by the end of this year. Four think they will cut this week.
Rauner wants business-friendly legislation he says will spur economic growth in exchange for signing off on a tax increase to address a $5 billion deficit. Democrats say Rauner's ideas hurt the middle class. The Senate is expected to consider a $7 billion out-of-balance budget passed by the House. But Rauner said he'll veto it.
Data released by the Australian Bureau of Statistics also showed Australia's net foreign debt continued to mount, up another 1 per cent over the quarter to a record $1.03 trillion.
Turning to public finances, Visco also warned that Italy's public debt – the highest in the euro zone as a proportion of national output after Greece's – may not come down this year as the government has targeted.
Behind the deterioration in creditworthiness: surging corporate borrowing. Enticed by record-low interest rates, companies increased total debt by $2.81 trillion over the past five years to a record $6.64 trillion. In 2015 alone, liabilities jumped by $850 billion, 50 times the increase in cash by S&P’s reckoning.
Rio’s acting governor Francisco Dornelles told reporters Monday the state’s problems are grave, and it is counting on an understanding with the federal government to renegotiate its debt. Rio’s finance secretary Julio Bueno said in an interview this month that states striking a “grand bargain’’ with the federal government is the only solution to the debt crisis.
Missed debt payments by Rio de Janeiro underscore credit risks facing all Brazilian states, adding to pressure on the federal government to offer more generous relief to struggling states, Moody's Investors Service said on Monday.
The Caribbean island, Puerto Rico’s closest American neighbor, has a sliver of the population — about 104,300 — and a fraction of the debt, with $2.4 billion across all issuers. But divvied up, that’s $23,000 of obligations per person, even more than Puerto Rico’s $20,000. The two Caribbean territories with a shared culture also have similar fiscal strains: declining populations, underfunded pensions, histories of borrowing to cover budget shortfalls and unemployment rates that are twice as high as the U.S. mainland’s.
Japan's government debt, at nearly 250 percent of GDP, is the biggest among major industrialised nations as tax revenues fall short of meeting ballooning social welfare costs for a rapidly ageing society. Raising the sales tax is considered crucial to reining in debt, but has been a taboo for politicians. After an increase to 8 percent from 5 percent in April 2014 tipped Japan into recession, Abe postponed a further hike to 10 percent planned for October 2015 for 18 months.
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