Using an ERP, the owner remains on title to the real estate or business, whilst a third party depletes its value, typically through a bogus mortgage or some other arrangement whereby the asset is used as collateral or security for a debt.
It would ensure that there would be in place an orderly procedure for preventing default on the national debt and Social Security if the government reaches the debt ceiling and is precluded from borrowing more money for a while.
FORBES: It's Time For The Republicans To Play Budgetary Small Ball
But Messrs Feldstein and Samwick also assume that the Social Security trust fund will be allowed to go into debt for about 20 of the next 75 years.
ECONOMIST: Social Security reform: The battle of the boffins | The
"CDO" is a common term for collateralized debt obligation, an investment-grade security backed by a pool of bonds, loans and other assets.
However, defaulting on debt payments, or any payments for that matter (Social Security, military, funding for states) is in the hands of the Congress, which remains a house divided.
FORBES: IMF Chimes In Against U.S. Debt Default: 'Catastrophic'
The cap applies to debt owed to the public (anyone who buys U.S. bonds) plus debt owed to federal government trust funds such as those for Social Security and Medicare.
At real GDP growth rates above the real interest rate on government debt (estimated by the Social Security trustees at 2.90% for the federal government, state interest rates are comparable), the PVIH of future GDP is infinity.
Overall, no more than 30% of the debt is likely to be recovered by selling the assets that served as security for the loans.
Adequate coverage of interest expenses is a sign of security for investors, as it ensures that the company can meet its obligations related to senior debt instruments.
Under this hard budget constraint, the rest of the government would have to live on whatever revenues are left over after debt service and Social Security benefits are paid unless Congress is willing to vote for more new borrowing, by super-majority vote if it wants to increase the debt more than the economy is growing.
FORBES: In Passing The Most Recent Budget, Congress And The President Lied
What really accounts for our federal budget is Medicare, Medicaid, Social Security, defense, interest on the national debt, and then everything else, from national parks to the environmental -- the EPA, the Environmental Protection Agency.
WHITEHOUSE: President Obama Holds a Town Hall in New Hampshire
And polls have consistently shown that a significant majority of Americans prefer to use the budget surplus primarily to pay down the national debt and to bolster Social Security and Medicare (as Gore is urging) rather than for a large tax cut as Bush has proposed.
CNN: latimes.com: Conventions to fill in portraits of Gore, Bush
This cheapening of debt effect is also true for the trillions of dollars in unfunded mandates such as social security, health care and government pensions.
The Joint Legislative Audit Committee hearing suggests that the State of California and its public employee retirement funds may play a critical role in fashioning a template for a truly national effort to introduce new national security- and human rights-minded "due diligence" into debt and equity purchasing decisions.
应用推荐