The 2008 economic crisis is the single largest factor that has driven developing countries to seek alternative sources of financing for social and developmental infrastructure. This was a result of the drying up of bilateral loans and grants from European and American countries.
The US is once again on the precipice of default on its national debt – not because of a fundamental inability to generate and collect tax revenues (a la Greece), but because of political shenanigans over the country’s debt ceiling.
Americans owed nearly US$1.2 trillion in student loan debt as of March 2015, more than three times the amount of debt from just a decade ago. Part of this increase in debt is due to more students attending college, but part can also be attributed to just the borrower holding more debt.
The rate of growth of the US federal government’s debt load has slowed of late, but its level remains high.
As of the end of 2014, total US Treasury obligations stood at US$18 trillion, more than 100% of current US output, or $56,500 for every one of us. This hefty sum is a reflection of the large annual budget deficits that the federal government has run, pretty much continuously, since 1931. (Prior to that, surpluses were much more common, apart from the years following the Civil War.)
The size of the global bond market has risen to near its historic record just as European policymakers mull a new monetary program that could raise demand for bonds even further.
Worldwide, new bond issues rose $3.96 trillion, according to data compiled by Bloomberg. That number includes corporate, government, and municipal debt, which has swollen just as bond yields have fallen on lower inflation expectations.
Here at Economy Watch, we’ve covered the consumer debt topic extensively, particularly the rise of credit card debt and the phenomenal growth of student loan debts. However, did you know that many Americans are also afflicted by debt due to their medical expenses?
Medical bills can add up quickly, particularly for illnesses that require constant treatment. Like any other form of debt, such bills can chalk up a huge medical debt which adversely affects
To have a debt is to owe something. This usually means owing money, but it can also mean owing favours, having obligations, or owing physical property or assets. In financial terms, taking on debt means borrowing money which is then to be repaid from the earning power of the investment that the debt is used for.
