InfoAnda - Public debt imperils world economy

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Obama to speak to House Dems as health vote nears | 7 November 2009
NATO foils attack on Norwegian tanker | International | | 2 May 2009
Thai villagers trickle home after Cambodia clashes | | 10 February 2011

Palestinians want Bethlehem on UN heritage list | 8 February 2011

Forum Views () Forum Replies ()

Read more with google mobile : Public debt imperils world economy

Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World Public debt imperils world economy AFP - 2 hours 31 minutes ago Send IM Story Print Public debt imperils world economy Slideshow: Full Photo Coverage: Business & Economy PARIS (AFP) - – The debt dilemma confronting Dubai has thrown into sharp relief a new threat to the financial health of rich countries that have borrowed and spent heavily to escape recession and must now pay up. Dubai, a ounce-thriving Gulf emirate, has sent world markets into a tailspin with an acknowledgement it will need a six-month moratorium on about 59 million dollars' (39.3 billion euros') worth of debt owed by its sprawling conglomerate Dubai World. But Dubai is hardly alone in having come to the uncomfortable conclusion that its Biblical seven fat years are over. The Organisation for Economic Cooperation and Development has warned that the world's 30 leading industrialised economies will see their indebtedness grow to 100 percent of output in 2010, a near doubling from the percentage 20 years ago. Japan's public debt is forecast to hit 200 percent of output next year. Comparable projections are 127.3 percent in Italy and 111.8 percent in Greece. The debt weighing on national budgets will have soared by up to 45 percent worldwide in the period from 2007 to 2010, leading ratings agency Moody's estimated on Wednesday. "Preliminary estimates suggest that the total stock of sovereign debt will have risen by as much as 45 percent or 15.3 trillion dollars (10.2 trillion euros) from 2007 to 2010," Moody's analyst Jaime Reusche said in a statement. This is "over 100 times the inflation-adjusted cost of the Marshall Plan," the huge US investment programme launched to revive Europe after World War II, he added. Moody's estimated in a report that the total global debt in 2010 would reach more than 49 trillion dollars. The members of the G7 grouping of rich countries will account for more than three-quarters of the increase, "as their fiscal accounts have been hit hardest by the crisis," Reusche said. "As growth turns negative in 2009 for most countries, the relative debt load becomes harder to bear." At the Center for European Policy Studies in Brussels, economist Cinzia Alcidi said: "A debt equivalent to 100 percent of gross domestic product means that everything produced in the course of a year will have to go toward reimbursement. "Are governments in a position to do that?" The fear is that if financial markets begin to doubt the ability of countries to pay what they owe, they could steer clear of official debt instruments -- such as treasury bonds -- and thereby deprive countries of fresh cash. "If the debt continues to grow, it's not hard to imagine a country having trouble securing finance," said Jean Pisani-Ferry of the Bruegel think tank in Brussels. Other analysts have warned that heavily indebted governments could see their credit ratings lowered, raising the cost of critical borrowing. Under such a scenario, governments would be tempted to raise interest rates offered to national creditors, thus intensifying the debt burden. "That's what makes debt explosive," noted Michel Aglietta of the research group Cepii. Economist Daniel Fermon of the bank Societe Generale has warned that in an "extreme case," a debt explosion could trigger a new wave of recession. In principle a return to robust economic growth should reduce the need for public borrowing, although economists caution that that may not happen in the current climate where a weak recovery is forecast. The weight of debt can also be eased if inflation rises faster than interest rates. But Aglietta of the Cepii institute said higher inflation can erode consumer spending, triggering "a flight of private capital toward countries with lower inflation." The alternative, according to Bruegel's Jean-Pisani Ferry, is to "raise taxes or cut public spending." But both the OECD and the International Monetary Fund have stressed that too abrupt a clamp-down on spending could snuff out recovery. Aglietta said governments should try to reassure credit markets by "signalling in advance their spending cuts or tax increases." For the moment, however, the message to the markets from Europe is mixed. Germany plans to cut taxes, Spain is preparing to raise them, the Netherlands sees spending cuts in 2011 while France has ruled out any tax hike. Recommend Send IM Story Print Related Articles S.Korea sees limited fallout from Dubai crisis Reuters - 57 minutes ago Japan firms' capital spending to drop 17.6 pct AFP - 1 hour 46 minutes ago Public debt imperils world economy AFP - 2 hours 31 minutes ago Nissan to double electric car power: report AFP - Sunday, November 29 S.Korea exports to rebound sharply in 2010 -groups Reuters - Sunday, November 29 News Search Top Stories WTO meeting expected to see free trade pledge Dubai as finance hub faces first test Police, protesters clash ahead of WTO conference Dubai blackout over debt plans to hit Gulf markets US Fed chief 'concerned' by regulatory proposals More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Investors dump stocks over Dubai scare Gatecrashers met Obama, Secret Service 'embarrassed' Wall Street braces for Dubai debt fallout, jobs data Dubai blackout over debt plans to hit Gulf markets US Fed chief 'concerned' by regulatory proposals More Most Viewed » Alcohol helps cut heart disease risk for men: study Mankind using Earth's resources at alarming rate More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

Other News on Sunday, 29 November 2009
Carlos the Jackal was 'revolutionary': Chavez
CORRECTED
US-TECH Summary
Bomb attack blamed in deadly Russia train disaster
Iranian lawmaker: Iran could leave nuclear treaty
Exec says Nokia must speed up transformation: report
Brown aims to set Afghan goals for troops' exit
Bruised Sarkozy launches campaign for French regionals | International |
Saudi floods death toll rises to 98
Afghan talks to seek road to security handover | International |
Religious, secular Israelis hold opposing protests | International |
Exec says Nokia must speed up transformation: report
Text-a-Tip programs allow tipsters to help police
Domestic abuse cases proceed _ even without victim
Kennedy to speak on health care after church feud
Ski resorts fight global warming; Utah gov unsure
Taiwan indie drama wins Chinese-language 'Oscars'
76-year old accused of killing son on Thanksgiving
Three Americans die in Shanghai plane crash: officials
Cleveland bodies case hard on nearby sausage shop
At least 33 die in Bangladesh ferry accident: police
Relative sought in 4 Fla. Thanksgiving killings
Some gays seek renewed focus on civil unions
3 Americans die in cargo plane crash in China
Whitman tries courting women in Calif. gov race
America wages new war in Vietnam _ on AIDS
In Wyoming, basketball drives reservation's pride
Afghanistan, Iraq: different wars
Indonesian minister blames disasters on immorality
Pakistan's president hands over nuclear powers
Flooding traps 16 in northern China coal mine
Apple's iPhone arrives in tech-savvy South Korea
Taiwan honors local film at Chinese Oscars
Lebanon's other women 'out' in force
A list of winners at Taiwan's Golden Horse Awards
Taiwanese drama big winner at Chinese Oscars
Europe lacks means, will for Afghan war: experts
Spain wants EU-Cuba agreement in first half of 2010
Hondurans to elect new president after June coup | International |
Dubai as finance hub faces first test
British PM sets targets for Afghan president
Police, protesters clash ahead of WTO conference
I'm a federalist but not fundamentalist: incoming EU President
Saudis claim key mountain win over Yemeni rebels | International |
Dubai blackout over debt plans to hit Gulf markets
Blair was told Iraq war 'illegal': report
Sri Lanka's war hero runs for president | International |
Bomb attack blamed in deadly Russia train disaster
U.S. hopeful of breakthrough in Iraq vote deadlock
Former guerrilla favored to win Uruguay election | International |
Saudis claim key mountain win over Yemeni rebels
Religious, secular Israelis hold opposing protests
Iran will make own nuclear fuel if IAEA deal fails: cleric
Equatorial Guinea president eyes new term in poll | International |
U.S. hopeful of breakthrough in Iraq vote deadlock | International |
Saudi floods claim 103 lives, 1,400 rescued | International |
Weather forecast for the Asia-Pacific region
News exec: Dinner crashers shopping interview
Death toll in Bangladesh ferry capsize rises to 40
Police find Texas teacher's body in SUV at impound
US man wanted for ecoterror sentenced in China
Carbon credits spell new future for forests
Administration plans new efforts on foreclosures
Massacre throws light on Philippine politics
Park rangers recover man's body at Grand Canyon
Analysts: All Is Not Lost For Dollar If Obama Aligns Focus With European Officials
Malaysia seeks child from Belgium in custody spat
Sarkozy Urges Singh To Come To Copenhagen, Obama Confirms His Attendance
'Telepathic' car symbolises Cambodian car industry hopes
Three Americans Die In Cargo Plane Crash In China
China tries to fix crumbling health care system
Family: Slain public defender didn't speak of fear
9,000 Marines to Helmand after Obama speech: report
Commonwealth throws weight behind climate talks
Ohio inmate seeks hearing over execution method
CORRECTS Louisiana Interstate Crash story
First lawsuit starts in China milk scandal: state media
Public debt imperils world economy
Nissan to double electric car power: report
S.Korea exports to rebound sharply in 2010 -groups
India says 'no need to press panic button' over Dubai debt
Bhopal gas survivors mark 25 years of agony
Longtime CBS News producer Bernard Birnbaum dies
French classical pianist Genevieve Joy dies at 90
Australia gives Chinese panda pair star treatment
Swiss voters favour minaret ban: exit polls
Karzai under pressure to draw up troop exit plan
WTO meeting expected to see free trade pledge
Air strike kills 30 Taliban in Afghanistan | International |
Pakistan president claims success against Taliban
Iran earmarks $20 million to support militants
Pakistan must step up action against al Qaeda: Brown | International |
Murder, threats mark judge's life in violent N.Iraq
Iran earmarks $20 million to resist West rights abuse | International |
Afghan police say 27 Taliban killed in clash
Russia says bomb caused deadly train crash | International |
Iran warns of decreasing cooperation with IAEA
Pakistani PM takes charge of nuclear weapons | International |
Saudi floods claim 103 lives, 1,400 rescued
Parties complain of irregularities in Namibia vote | International |
Iran speaker warns West on nuclear cooperation
Afghan private sector desperate for change
Black Friday shoppers tweet, friend and clip | Technology |
Nokia-Siemens CEO says focus on market share: report | Technology |
Police: 4 die in CA crash as car runs red light
Powerful clan denies role in Philippine massacre
The nation's weather
Nepal's Cabinet to meet at Everest in December
Shootings leave 3 dead, 1 wounded in eastern Kan.
Turbulence ahead: Senate opens health care debate
Capsized ferry righted in Bangladesh; 51 dead
Afghan gov't: 26 militants killed along border
Pakistani PM takes charge of nuclear weapons
LA stylist learns modern meaning of 'pay phone'
Water cooler at nuke plant in India contaminated
Australia climate deal threat ahead of Copenhagen
Philippine journalists expect attacks to continue
Capsized ferry righted in Bangladesh; 45 dead
Inflation fuels Pakistan dissatisfaction with govt
China's Wen meets with eurozone leaders
S.Korea calls meeting to check fallout from Dubai
Japan firms' capital spending to drop 17.6 pct
Shoplifting Charge Gives Man A Stinky Situation
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01