Hyperinflation is driving Venezuelans to revert to a bartering system, as they face shortages of bank notes, food and medicine. It means residents of the once-prosperous country are finding creative ways to pay for good and services.
Venezuelan consumer prices rose 46,305 percent in the 12 months ending in June, the opposition-controlled congress said on Monday, as the crisis-stricken nation's hyperinflation continues to accelerate amid a broader economic collapse.
Henken says the problem is labor contracts from the 70's and 80's , which paid higher portions of healthcare costs, at a time when healthcare was cheaper.
"What nobody predicted at the time, and ostensibly nobody could have predicted is the extent to which healthcare inflation outpaced regular inflation, and the extent to which healthcare costs have skyrocketed."
Watsonville is the latest California city eyeing an increase to its transient occupancy tax as budget deficits, largely driven by ballooning retiree pension costs that the League of California Cities have proclaimed to be “unsustainable” for local governments. Nearby, the city of Scotts Valley is sending its own increase to the tax from 10 to 11 percent to voters in November after approval from the City Council in June. Similar increases are being explored in Capitola and Santa Cruz.
With total government debt approaching or exceeding annual gross domestic product in some countries, extending the maturity profile of that debt is one way of keeping it sustainable over time. Spain’s debt-to-GDP ratio, for example, is almost 99 percent compared with around 40 percent in 2008. It has issued a lot of long-term debt in recent years, including a 50-year bond.
One of the largest issues the state failed to address with the budget was its largest debt: $130 billion in unfunded pension liabilities. “Fundamentally we are where we were three years ago in terms of our overall situation concerning the unfunded pension numbers,” said Bill Bergman with the nonprofit Truth in Accounting. “That’s despite a huge tailwind in the stock market.”
How does that break down? Corporate bonds rated BBB now total $2.56 trillion, having surpassed in size the sum of higher-rated debentures, which total $2.55 trillion, according to Morgan Stanley. Put another way, BBB bonds outstanding exceed by 50 percent the size of the entire investment grade market at the peak of the last credit boom, in 2007.
"How do you make up that significant piece of money when you know the expenses on the city side are going to increase, when you know the police department is potentially staring at a $7.8 million deficit, when department of public works and other agencies, affordable housing need more money?" questioned Giarrusso.
These Pictures. What is Wrong (GE Christenson)
As commercial and central banks devalue the dollar “currency risk” affects the debt markets and interest rates rise. Higher rates applied to $230 trillion of global debt require larger debt service payments and “squeeze” debtors including all sovereign governments.
In the late 1990s, there were nearly 100 of these giant whales in the population. Following the salmon, they migrate in the Salish Sea to the northern coast of British Columbia and often surface in the south at Puget Sound within sight of downtown Seattle, especially during the spring and summer months. The males, which can weigh up to 22,000 pounds, typically live about 30 years, and females, up to 16,000 pounds, survive longer — up to 50 or 60 years, although one J-pod member, Granny, lived to be 105 years old.
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