Tag: debt

Donald Trump said the national debt would destroy our country. Now he is expanding it. Ron Klain explains how Donald Trump and Republicans are contributing much more to the debt than President Obama. David Corn says Trump and Republicans want…

* Italy bond selloff not just about politics - Italy debt official * Contagion from Italy limited - Portugal debt chief * ECB tapering no problem - issuers (Updates throughout) By Abhinav Ramnarayan and Dhara Ranasinghe LONDON, June 19 (Reuters) - Recent sharp volatility in short-dated Italian government bonds was partly due to technical factors in addition to political concerns, a senior official at the Italian government debt agency said on Tuesday. Italian bond markets in May experienced some of their biggest swings in several years as an anti-establishment coalition took shape in Rome. But some technical factors such as the reduced capacity of primary dealers to trade government bonds also contributed to market volatility, Davide Iacovoni, director general, Public Debt Directorate at Italy’s Department of Treasury said at a conference in London. “We have the feeling that the magnitude of the swings is not only attributable to political events but to technical changes in the market as well,” he said a Euromoney conference. He also said that a lack of liquidity in the BTP bond futures market impacted trading in cash bonds. Also speaking at the conference, the Portuguese debt management agency’s chairwoman and chief executive Cristina Casalinho said the contagion from events such as the recent Italy selloff seems to have subsided compared with the height of the euro zone debt crisis. They said that ECB tapering had been well anticipated by markets and that reinvestments from maturing bonds would continue to support bonds well after monthly asset purchases end. The bank also signaled that any interest rate hike remains some way off. Portugal’s Casalinho meanwhile added that effective ECB communication also helped from an issuer’s perspective. “What’s really relevant is good communication and so far the ECB has a good track record on that front,” she told Reuters on the sidelines of the conference.

Woody talks about playing cards with Willie Nelson and reveals that the stakes get so high he needs to do films like Star Wars to cover his debt. Rudy Giuliani is Very Confused https://youtu.be/vPj0qzPiMhA SUBSCRIBE to get the latest #KIMMEL:…

Mexican and Brazilian elections give Amundi Asset some pause Emerging Asian dollar debt offers greater resilience: Amundi Politics, politics and still more politics. That’s what will dominate Latin America’s biggest economies this year, and provides good reason to be wary of the region’s financial markets, says Europe’s largest asset manager. "Latin America is difficult to play," Vincent Mortier, deputy chief investment officer at Amundi Asset Management, said in an interview in Hong Kong last week. "Elections are coming in Mexico -- probably a very left-wing party will be elected. Brazil is also in the election process.” Amundi, which oversaw 1.45 trillion euros ($1.8 trillion) as of March, has cut its fixed-income positions in Brazil and Mexico to underweight from neutral. “We prefer Asia for sure overall -- credit and equities,” Mortier says. In Brazil, investors are also bracing for political upheaval, with the right making a comeback in the run-up to the October ballot. Meanwhile, a slump in Asia’s bond market may offer a better entry point for investors. The region’s emerging-market dollar debt had its worst returns in two decades in the first quarter, thanks to a jump in short-term interest rates that spurred investors to unwind bets. "These countries are less dependent on external factors, and we believe they will be more resilient.”

The Story: In a fascinating new book an experienced trial attorney tells the story of the turmoil in the silver market in 1979-80. Mark Cymrot's...

These questions are at the base of the debate -- such as it is -- in Congress these days over the so-called Republican tax reform plan. In fact, with the exception of a few courageous senators, such as Rand Paul of Kentucky, and representatives, such as Justin Amash of Michigan and Thomas Massie of Kentucky, most in Congress in both parties think the only limit on the government's taxing power is what it can politically get away with at any given moment. But it doesn't borrow money as you or I do or any business does -- with a planned schedule to pay back the principal it owes plus interest. Rather, it goes deeper into debt to pay its debts. Stated differently, the feds have always made timely interest payments, but when principal has come due, they have simply borrowed more money to pay the principal and of course thereby incurred more debt. For example, the federal government still owes the $30 billion Wilson borrowed to finance the useless and fruitless World War I, but the lenders it owes it to are different from those from which it originally borrowed that money. Of the $4 trillion the feds spend annually, more than $850 billion of it is interest payments to its current creditors on its debts. The Republican House tax changes -- they cannot be called a "reform," because they reform nothing; they just redistribute wealth and add debt -- would lower taxes for some and raise taxes for many and add $1.5 trillion in debt for all. If the feds follow their 100-year consistent pattern, this debt will never be retired, will be rolled over hundreds of times and will cause the taxes on generations of unborn Americans -- where is their consent? Then the government's creditors will not be paid, and the government will not be able to borrow money.

Seth takes a closer look at the aftermath of President Trump's disastrous response to the humanitarian crisis in Puerto Rico, and a simmering feud with his secretary of state. » Subscribe to Late Night: http://bit.ly/LateNightSeth » Get more Late Night with…

Since 2002, our politicians have increased the debt nearly $14 trillion. "I've had such years." How can you pay back all that debt when you're earning only $36,000 a year and spending $41,000 a year?" When rates eventually return to historically normal levels, your debt service will jump to more than $8,000 a year!" I'm already spending $5,000 more than I'm making. That means my total spending will jump from $41,000 to $47,000 - or $11,000 more than I earn?" But to make matters even worse, the costs of government entitlement programs, such as Social Security and Medicare, are going to explode as the baby boom generation retires." "According to The Hill, each American's share of our $20 trillion debt totals $166,000! "That is correct, and it doesn't bode well for our country's future."

Republicans Boo White House Officials Over Trump's Debt Deal With Democrats. (WASHINGTON) — House Republicans hissed and booed senior Trump administration officials Friday as they pitched President Donald Trump's deal with Democrats to increase the nation's borrowing authority. "Vote for the debt ceiling for me," Treasury chief Steven Mnuchin pleaded with Republicans on Friday at a closed-door meeting at the Capitol, according to several lawmakers. Mnuchin is a banker and former hedge fund manager. "Ha. He was booed when he stepped up to speak, though at least one lawmaker said the booing was largely good-natured. Republicans were dumbfounded earlier this week when Trump agreed with Democratic leaders on a short-term deal to increase the debt ceiling as part of a larger package to provide emergency aid for Hurricanes Harvey and Irma and fund the government through Dec. 8. Rep. Dave Brat, R-Va., said Mnuchin's presentation in particular was not well-received by GOP lawmakers. Mulvaney defended the deal and Trump. All 90 votes in opposition came from Republicans.