The trailer to the International Monetary Fund’s fiscal forum on the “political economy of high debt” plays on our fears with the haunting tension of a Hitchcock thriller. A quote from Thomas Jefferson flashes across the screen in blood-red colours: “We must not let our rulers load us with perpetual debt.”
We learn that public debt in the rich economies fell from 124 per cent of GDP at the end of Second World War to 29 per cent in 1973, a dream era we have left behind.
NEW DELHI: Three months before he left India with $1.4 billion in unpaid bills hanging over his head, the man who called himself the King of Good Times gave a party for himself. Vijay Mallya, a beer-and-airline magnate who publishes a swimsuit calendar and cavorts with celebrities, invited pop singer Enrique Iglesias, Bollywood star Sonu Nigam and some top Indian business figures to his villa in Goa to celebrate his 60th birthday.
CAMBRIDGE – There is no magic Keynesian bullet for the eurozone’s woes. But the spectacularly muddle-headed argument nowadays that too much austerity is killing Europe is not surprising. Commentators are consumed by politics, flailing away at any available target, while the “anti-austerity” masses apparently believe that there are easy cyclical solutions to tough structural problems.
TOKYO: Asian stocks sagged and the dollar stood tall on Wednesday on growing prospects the Federal Reserve was on track to raise interest rates later this year and concerns that financial woes could engulf Spain in addition to Greece. Taking a lead from Wall Street's slide, MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent with Australian and South Korean shares suffering losses. Tokyo's Nikkei shed 0.3 per cent.
Research Recap submits:
Uncertainty about European private issuers’ ability to refinance maturing debt persists as anxiety about the health of the banking industry and continuing tension in the financial markets linger, according to Standard & Poor’s. S&P estimates that $3.03 (€2.5) trillion of nonfinancial and financial debt will mature in Europe from the second half of 2010 through 2013. This compares with $2.4 trillion in corporate debt coming due in the U.S. through 2013.
TOKYO (Reuters) - The Bank of Japan on Friday outlined a loan scheme aimed at supporting growth industries and upgraded its assessment of the economy, but said Europe's debt debacle needed watching for its impact on the global economy.