Readers Question: I read today that US owes an overall debt of 16 trillion, similarly India is also too worried about its fiscal deficit, I think that every country owes some debt. so if everyone owes some money, then where is that money coming from???, or in other words, if everyone’s account balance is in …
Readers Question:… So, basically we have the FED using it’s money to liquidate the fund’s of other people, and those other people are lending, or a portion of them are lending, the fund’s that they now have because of the FED. Wouldn’t it make more sense for the FED to, instead of purchasing bonds so …
Recently, the IMF have been working hard to establish a bigger fighting fund to help out insolvent Eurozone economies. (Although they say, it is not just for the Eurozone, but for the whole world economy.) Extra contributions from IMF members have raised an extra £300bn – taking the total of IMF funds to £1,000bn. The aim …
Hello. You mention national debt and public sector debt. Are they the same? Yes, the official measures is the public sector net debt. Often people refer to this as the national debt. (there once was an official statistics called national debt, but this was discontinued quite a while back). However, when people talk of national …
Readers Question: Does it (financial crisis) have any possible positive effects for the future? It is an opportunity to repair a broken financial system and put in safeguards to prevent future boom and busts. For example, we could have policies which banks automatically hold more deposits during a boom to provide counter cyclical instruments. Better …
there is a saying if one person dies it is murder, if hundreds of people die it is mass murder and if it is thousands of people it is an act of God. If a single mother gets £20 a week benefits she is a ‘scrounger’ If you avoid paying £1000 tax, you are a …
Since 2020, Spain has been one of Europe’s best-performing economies. Despite Covid, it has grown by 8%, outperforming the likes of the UK, Germany and France. In 2024, Spanish growth was an impressive 3.1%, (and according to the boast of a Spanish minister), accounting for 50% of all the EU’s economic growth. How the Spanish …
In 1973, in response to the Yom Kippur War, OPEC introduced an oil embargo which caused prices to rise 300%. It ushered in an era of high inflation and political volatility. In 1979, the Iranian revolution caused another 300% rise in oil prices which caused a secondary inflation shock and the deep recession of 1981. …