Latest news with #governmentdebt
Yahoo
5 days ago
- Business
- Yahoo
High Earners Discuss How To Help Children Navigate Rising Government Debt: 'This Is NOT A Political Statement'
President Donald Trump recently passed the so-called "Big Beautiful Bill" with the help of the House and Senate. Some high-earners discussed how the bill will affect their children due to the rising government debt. Increases in the government debt have become a common trend across party lines. The debt ceiling is regularly raised, and that can create challenges for future generations. However, the high earners didn't debate whether the bill was justified or not. Instead, they focused on adjusting their plans for rising debt. Don't Miss: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — $100k+ in investable assets? – no cost, no obligation. "This is NOT a political statement," the original poster stated. These are some of the ways you can navigate a rising federal debt. Invest In Cryptocurrencies Rising debt isn't an exclusive problem for the U.S. Most countries boost government spending to cover various initiatives, and that results in sky-high debt. Cryptocurrencies aren't vulnerable to those risks since they are decentralized. A central bank cannot increase the supply of a cryptocurrency. Some cryptocurrencies have a limited supply, while others require a community vote to apply actions like increasing the supply. Bitcoin is capped at 21 million coins, and this limitation bears a resemblance to physical gold. Cryptocurrencies have the potential to hedge against inflation. If governments continue to get deeper into debt, assets like cryptocurrencies can continue to thrive. Trending: This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — International Diversification One Redditor suggested diversifying into international stocks and ETFs. These assets shield investors from uncertainty with U.S. stocks. While U.S. stocks have outperformed global stocks in recent years, tariff concerns at the start of the year demonstrated how beneficial it is to have international exposure. Many European stocks performed well during the initial tariff onslaught, while U.S. stocks went into sharp corrections. One Redditor mentioned that the real return of U.S. markets may be lower if you account for inflation and international currency devaluation. The same Redditor who brought up international ETFs also encouraged people to sell their representative and vote in primaries. "People in this sub have more sway than they think. Congress doesn't care about debt because voters don't care about it," the Redditor Worry About It This isn't the first time the country has increased the debt ceiling, and it likely won't be the last. Rampant government spending has been a core theme for decades, and one Redditor said that people shouldn't worry about the Big Beautiful Bill's impact on debt. "Buy assets. It doesn't matter what happens with the actual currency if you own value-producing assets," one Redditor explained. Another Redditor mentioned that people get worried about rising debt but don't give as much thought to their own finances. It's similar to someone being worried about a rising government debt while owing $10,000 on their credit card. "I think people over-worry about the U.S.'s ability to stay solvent and under-worry about their own ability to stay solvent in the event of a market downturn," another Redditor chimed in. Focusing on what you can control can position you and your family for a better financial future. Don't blame the government for any financial shortcomings. Read Next: Many are using retirement income calculators to check if they're on pace — Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article High Earners Discuss How To Help Children Navigate Rising Government Debt: 'This Is NOT A Political Statement' originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
Reuters
14-07-2025
- Business
- Reuters
German 30-year yield hits 21-month top, continuing steady march higher
LONDON, July 14 (Reuters) - German 30-year government bond yields hit their highest in nearly two years on Monday and 10-year yields their highest since early April as investors looked through the latest tariff news to focus instead on the impact of rising Japanese yields. Longer-dated bond yields have been rising around the world on the back of broad investor fears about the scale of government debt. Germany's 30-year yield rose as high as 3.26% on Monday, its highest since October 2023. A break past the 3.26% hit then would take it to its highest since August 2011. Benchmark Bund yields rose to as much as 2.737%, their highest since March 28, a few days before U.S. President Donald Trump's original "Liberation Day" tariff reveal. "Today there is definitely spillover from Japan," Reinout de Bock, head of European rates strategy at UBS, said. German yields have been rising as investors brace for increased bond issuance after parliament earlier this year approved plans for a massive spending surge, particularly on defence and infrastructure, hoping to revive economic growth. The yield on the 20-year Japanese government bond rose 12 bps on Monday to its highest since 2000, and 30-year yields rose 13 bps. Japanese moves "become a concern in the sense that they have a lot of foreign bonds, and so what (Japanese investors) might not do is to reinvest their redemptions and coupons back into France or into the U.S." Jens Peter Soerensen, chief analyst at Danske Bank, said. "I'm not super worried about it, but ... as long as the Japanese yields rise in the long end, then there will be some kind of impact, because it's the same measures that drive also European yields." Also in the mix was the latest trade news, after Trump said on Saturday he would impose a 30% tariff on most imports from the European Union from August 1. But markets have largely looked through the news, with European shares only down slightly, the euro flat against the dollar, and bonds seeing no real safe haven rush. "The latest tariff threats of 30% on EU goods are above the upper end of the recently discussed ranges, but with negotiations still progressing until the 1 August deadline, any risk-off and subsequent support for Bunds looks set to be limited at best," Commerzbank rates strategist Hauke Siemssen said. "After all, Trump has repeatedly threatened substantial tariffs but extended deadlines in the subsequent days," he said. French 10-year bond yields rose 2 bps to 3.43%, after President Emmanuel Macron on Sunday announced a plan to push forward defence spending, pledging to double the military budget by 2027, three years earlier than originally planned. His government is already struggling to make 40 billion euros in savings in its 2026 budget. Italy's 10-year yield was up 1.5 bps at 3.62%, leaving the closely watched spread between Italian and German yields at 88 bps. , "Everybody's hiding behind Germany," said Soerensen. "That's why you see spreads like Germany versus Italy and so on tightening, because supply is quite high from Germany and increasing quite significantly. And the rest are trying not to increase as much."
Zawya
14-07-2025
- Business
- Zawya
Moody's upgrades Oman to Baa3, changes outlook to stable
Muscat: Moody's Ratings (Moody's) on Thursday upgraded the Government of Oman's long-term issuer and long-term senior unsecured ratings to Baa3 from Ba1 and changed the outlook to stable from positive. Moody's has also upgraded the Government of Oman's senior unsecured medium-term note programme rating to (P)Baa3 from (P)Ba1. The upgrade reflects Moody's expectation that Oman's government debt metrics will remain robust even if oil prices moderate below Moody's medium-term assumption of $65/barrel in the coming years. The recent years' significant reduction in debt burden together with the cumulative impact of spending restraint increase Oman's resilience to potential future declines in oil demand and prices. Stronger debt metrics also afford the government more fiscal space and time to implement structural reforms that could, over time, reduce the sovereign's still-heavy economic and fiscal reliance on the hydrocarbon sector and potentially support a higher rating. The stable outlook balances fiscal risks under alternative oil price scenarios. The upside risks stem primarily from regional geopolitical tensions, that could drive oil prices higher than Moody's medium-term assumptions, without affecting Oman's ability to export. Conversely, the downside risks include the possibility that global carbon transition accelerates more than we currently assume, leading to weaker hydrocarbon revenue streams in the medium term compared to our baseline. Significantly and durably lower hydrocarbon revenues could reverse the past few years' improvements in Oman's fiscal strength if not met with similarly significant new fiscal consolidation measures. Thursday's rating action also applies to Oman Sovereign Sukuk, a special-purpose vehicle domiciled in Oman, whose obligations, in our view, are ultimately the obligation of the Government of Oman. The entity's backed senior unsecured ratings and its backed senior unsecured medium-term note programme rating were upgraded to Baa3 from Ba1 and to (P)Baa3 from (P)Ba1, respectively. The outlook has been changed to stable from positive. Oman's local currency (LC) and foreign currency (FC) country ceilings were raised by one notch to A3 from Baa1 and to Baa1 from Baa2, respectively. The local currency country ceiling at A3, three notches above the sovereign issuer rating, incorporates the economy's heavy reliance on a single revenue source, the government's large economic footprint, and Oman's track record of material external imbalances during the periods of lower oil prices, mitigated by predictable institutions and moderate political risk. The FC country ceiling at Baa1, one notch below the local currency ceiling, reflects relatively modest transfer and convertibility risks, taking into account the sovereign's robust foreign-currency buffers and Oman's track record of improving fiscal policy effectiveness, balanced by the economy's high, albeit declining, external indebtedness. © Muscat Media Group Provided by SyndiGate Media Inc. (
Telegraph
14-07-2025
- Business
- Telegraph
The pension triple lock is a self-inflicted disaster
Last week it was the turn of the Office for Budget Responsibility (OBR) to deliver more bad news for Rachel Reeves, when producing its latest report on Britain's fiscal prospects. The OBR often comes in for a lot of stick – most of it unjustified. It does a good job of laying out unpalatable truths for politicians. Like more or less everyone else, it is pretty bad at forecasting the fiscal numbers over the coming year, and equally undistinguished at the five-year forecasting which underpins the Chancellor's fiscal rules. So what it says about the period out to 2070 invites being taken with the proverbial barrel of salt. Yet these long-term projections should be taken seriously. The OBR's fiscal picture is pretty alarming. At the end of 2024, the UK's fiscal deficit was 5.7pc of GDP, which was the fifth highest among 36 advanced countries. At 94pc, the ratio of government debt to GDP is the sixth highest among advanced economies after Japan, Greece, Italy, France and the US. Incidentally, in 1976 when the then-Labour government negotiated a loan from the IMF, our debt ratio was just under 50pc. Commentators often talk about the danger that the bond markets will react negatively to our worrying fiscal prospects. In practice, however, they already have. UK 10-year bond yields are standing at about 4.6pc. For those of us who can remember 16-17pc yields in the early 1980s, that doesn't sound too bad. But this is currently the third-highest 10-year government bond yield of any advanced country, after New Zealand and Iceland.
Times of Oman
12-07-2025
- Business
- Times of Oman
Moody's upgrades Oman to Baa3, changes outlook to stable
Muscat: Moody's Ratings (Moody's) on Thursday upgraded the Government of Oman's long-term issuer and long-term senior unsecured ratings to Baa3 from Ba1 and changed the outlook to stable from positive. Moody's has also upgraded the Government of Oman's senior unsecured medium-term note programme rating to (P)Baa3 from (P)Ba1. The upgrade reflects Moody's expectation that Oman's government debt metrics will remain robust even if oil prices moderate below Moody's medium-term assumption of $65/barrel in the coming years. The recent years' significant reduction in debt burden together with the cumulative impact of spending restraint increase Oman's resilience to potential future declines in oil demand and prices. Stronger debt metrics also afford the government more fiscal space and time to implement structural reforms that could, over time, reduce the sovereign's still-heavy economic and fiscal reliance on the hydrocarbon sector and potentially support a higher rating. The stable outlook balances fiscal risks under alternative oil price scenarios. The upside risks stem primarily from regional geopolitical tensions, that could drive oil prices higher than Moody's medium-term assumptions, without affecting Oman's ability to export. Conversely, the downside risks include the possibility that global carbon transition accelerates more than we currently assume, leading to weaker hydrocarbon revenue streams in the medium term compared to our baseline. Significantly and durably lower hydrocarbon revenues could reverse the past few years' improvements in Oman's fiscal strength if not met with similarly significant new fiscal consolidation measures. Thursday's rating action also applies to Oman Sovereign Sukuk, a special-purpose vehicle domiciled in Oman, whose obligations, in our view, are ultimately the obligation of the Government of Oman. The entity's backed senior unsecured ratings and its backed senior unsecured medium-term note programme rating were upgraded to Baa3 from Ba1 and to (P)Baa3 from (P)Ba1, respectively. The outlook has been changed to stable from positive. Oman's local currency (LC) and foreign currency (FC) country ceilings were raised by one notch to A3 from Baa1 and to Baa1 from Baa2, respectively. The local currency country ceiling at A3, three notches above the sovereign issuer rating, incorporates the economy's heavy reliance on a single revenue source, the government's large economic footprint, and Oman's track record of material external imbalances during the periods of lower oil prices, mitigated by predictable institutions and moderate political risk. The FC country ceiling at Baa1, one notch below the local currency ceiling, reflects relatively modest transfer and convertibility risks, taking into account the sovereign's robust foreign-currency buffers and Oman's track record of improving fiscal policy effectiveness, balanced by the economy's high, albeit declining, external indebtedness.
