Ahead of the game.Latin Lat·in n. 1. a. The Indo-European language of the ancient Latins and Romans and the most important cultural language of western Europe until the end of the 17th century. b. America's external debt in relation to economic output has steadily plunged since early 2003. Getting out of debt is good for domestic governments since taking off the pressure of debt payments allows for new investments in infrastructure. It's also good for investors: A balanced budget Balanced budget A budget in which the income equals expenditure. See: budget. balanced budget A budget in which the expenditures incurred during a given period are matched by revenues. means, in most countries, a stable political and economic scene. But is it all good news? Joydeep Mukherji, sovereign credit Sovereign credit is the credit of a sovereign country backed by the financial resources of that state. Sovereign credit is the opposite of sovereign debt. Fiat money is sovereign credit and sovereign bonds are sovereign debts. When money buys bonds, sovereign credit cancels sovereign debt. analyst at Standard & Poor's, says mostly, yes. Clearly, record high commodity prices have left room for getting out of debt early, a trend likely to continue as long as the Chinese economic juggernaut Juggernaut, India: see Puri. Juggernaut (Jagannath) huge idol of Krishna drawn through streets annually, occasionally rolling over devotees. [Hindu Rel.: EB, V: 499] See : Destruction keeps up demand for raw materials. "If the international conditions reverse, we're really going to see which countries are able to maintain their tight budget performance and carry on, and which will go back to big trade deficits and have to borrow again," Mukherji says. |
|
||||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion