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Bruni describes the situation facing Millenials in the U.S., a group of young people who face high student debt and few job opportunities, many stuck in jobs that do not match their qualifications. A similiar situation faces young people in Italy, Spain, France, the UK and other European countries. In South Asia there is an appalling lack of job opportunities to meet the aspirations of young people for a better life.

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Companies with good credit ratings are paying higher interest rates and others are finding it harder to borrow as investors flock to safe Treaury bills and government debt. And in 2009 about $700 billion in debt has to be refinanced. Southwest Airlines needed $400 million partly to cover losses from betting that fuel costs would remain high. It is the only domestic airline with an investment grade rating. It had to pay interest of 10.5%, twice the rate it paid in 2004 to raise $350 million. It is doing the borrowing now because its CFO says it does not know what the credit markets will be like 6 months or a year from now. Corporations borrowed $172.7 billion in the 4th quarter, down from $179.1 billion in the last 3 months of 2007, with businesses trying to borrow ahead of further deterioration in credit markets and overcrowding as the government steps up its borrowing to meet the needs of the $825 billion stimulus spending. Businesses that cannot get the access to the credit as refinancing comes due or find the high interest rates (sometimes approaching 20%) onerous, may not survive. ...

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Ireland is paying close to 6% for the cash it is getting while European authorites are paying 3% to issue bonds in January 2011. With the rate at 3.5% over German bond yields, J.P. Morgan estimates that Ireland would have to generate a primary surplus, excluding interest costs, of 2.3% in 2015. This is what it would take to stabilize debt against GDP. Borrowing at one percent lower Ireland would need a primary deficit of 0.2%. Ireland is in its third year of fiscal austerity, and this unjustly penalizes Ireland. An interest rate reduction would be contingent on Ireland achieving fiscal targets and monitoring by the European authorites.

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David Reilly points to the growth rates used by the U.S. Congressional Budget Office as too optimistic in the light of recent figures from the Commerce Department that show growth was only 0.8% for the first half. The CBO deficit reduction projections are based on a 3.1% U.S. growth rate for 2011 and 2.8% in 2012. This means the $1 trillion in initial spending cuts under the August 2 Debt Ceiling and Deficit Deal are likely to have a negligible impact on U.S. deficit reduction. Bank of America's revised forecast is for 1.7% U.S. growth for 2011 and 2.3% for 2012. The Office of Managemet and Budget estimates that a one percentage point drop in growth in the forecast for 2011 can lead to a $750 billion increase in cumulative deficits over 10 years. Former Treasury Secretary Summers also points this out in his op-ed piece in the Washington Post, August 2, 2011.

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China raises $3.7 billion in a 3 part deal in euros by issuing bonds worth 4 billion euros, for 5, 10, and 15 year bonds. Yields were a negative 0.152% for 5 year bonds and 0.32% and 0.66% for the 10 and 15 year bonds. This is the first time China has sold negative yielding bonds. Moody's projections show China public sector debt is at 185-190% of gross domestic product in 2020, up from 167% in 2019.  

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This WSJ report looks at another example of the misallocation of capital of billions of dollars at a time when infrastructure, essential services, health and education are being starved of capital. In this example inflation of balance sheets at Wirecard before its bankruptcy enabled it to raise 3.7 billion dollars in the debt in the years before its collapse, with nearly half of this coming from Softbank an investment firm of people's money. Money that is now completely lost.

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The interest rate Ford is paying bondholders is half of what it paid last year. This is especially significant considering Ford's high level of debt and debt payments. Ford lost its investment grade rating in May 2005.

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Critics say China uses debt trap diplomacy in Africa through its infrastructure investment projects. Silja Frohlich of DW.com speaks to Eric Olander of the non-partisan China Africa Project to make an assessment of what is happening. Olander says Africa is facing a demographic change of immense proportions with about a billion people that are being added by 2025. For African leaders what are their options- do they build the infrastructure that would lead to the industrialization that creates jobs for all these people, even as they use their children's future to borrow vast sums of money. Global and private markets would charge 7 times the interest that the Chinese are charging, says Olander. China has built roads, railways, bridges, hospitals, and other infrastructure for which there was not enough financing from other countries. Since the Belt and Road Initiative was launched 5 years ago it has built four new railways- the Mombasa-Nairobi railway, Addis Ababa-Djibouti (759 kms), Abuja- Kaduna (186 kms) and Angola's Benguela railway (1866 kms). China has also helped Africa to develop its options with alternative sources of investment helping it negotiate new investments from different sources as Kenya and Uganda are doing today.  At the conference in 2019 in Beijing President Xi offered cancellation of interest till 2018 for loans to Ethiopia. A new effort to introduce transparency and improve terms and offer debt forgiveness is underway to change China's image for investment in Africa. Olander sees China making a solid contribution over the past 10 years funded by Chinese money. ...

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This Journal editorial says Germany and France will have to pay for preserving the Eurozone one way or another. It suggests a direct approach of the German and French governments injecting capital for recapitalizing German and French banks that would take losses on bad loans to Greece, Ireland, Portugal, and Spain; combining this with bondholder haircuts for creditors, and reforms that include spreading the burden for Irish bank debt and cleaning up the cajas savings banks mess in Spain. This would mean exactly the opposite of what is taking place now, including the abandoning of individual country rescues and bailouts; which the Journal calls extending loans and pretending the problem is not with German and French banks that would have losses on the bad loans. The problem is that this places the entire burden on austerity measures in each bailout country which reduces growth and raises unemployment to levels that make the problem much worse than before. This is not happening because of a serious failure to reach agreement on the shared sacrifice and cooperation between the governments, creditor banks, the ECB and other parties in the eurozone, on a serious debt restructuring across the eurozone that would put the euro back to stability with some mechanism for serious financial discipline in eurozone states....

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Problems with the July 2011 plan for Greece and other troubled eurozone economies include the lack of funding and powers for the European Financial Stability Facility (EFSF). The contagion effects to Italy and Spain will require larger funding and powers for the EFSF for it to be able to deal with future crises. The bondholder debt haircut for Portuguese and Irish bondholders, and the sense that the crisis in Greece may have to be revisted yet again, are other issues that remain unresolved. Analysts sense that the EU's governance mechanisms are always a step behind in dealing with the repeated crises and EU leaders are doing only enough to get to the next crisis moment.

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Risk averse leaders are hurting the German economy with little or no growth in the last 5 years. See articles alongside. Anglela Merkel's debt brake inthe German Constitution and the attitude for debt brake of Lindner's FDP in the Scholz coalition since 2021 have led to underinvestment in public infrastructure. Merkel's lack of investment in digital technologies, overdependence on Russia for oil and China for markets during the decade in office are all leaving Germany in bad shape in 2015.

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Italy has 1.5 trillion euros of debt outstanding and this is the third largest behind USA and Japan. About 241 billion euros worth of Italian government bonds are expected to be issued in 2010, with 171 billon euros of this in redemptions. Interest rates need to be low to not widen its deficit. Italian debt is expected to go up to 118% of GDp in 2011 from 103% in 2007 according to Moody's Investors Service.By contrast Spain's debt s expected to go up by 38% in the same period. Italy's households are less burdened with debt than Spain's. still Italian bonds are affected, as yields widened between Italian and German government bonds to 1.58% compared to before the euro-zone rescue plan of 750 billion euros.

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Fannie Mae will make a payment of $59.4 billion to the U.S.Treasury as a result of improvement of conditions in the housing markets that enable Fannie to writeup the value of devalued assets on its balance sheet. Fannie showed a profit of $8.1 billion for the first quarter of 2013 from its activities of guaranteeing and investing in home loans in the U.S. In 2008 the U.S. government bailed out Fannie Mae and Freddie Mac and the agencies received $117 billion in government assistance since then. With this $59.4 billion about $95 billion has been paid back to the U.S. Treasury. This also delays the debt ceiling deadline to Oct. 1, 2013 by generating more revenues for the U.S. Treasury in addition to higher tax revenues.

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Britain's Treasury chief Osborne faces a difficult period as the economy shows flat growth for 2012 and 2013. The targets he set for eliminating the structural deficit or budget gap by April 2017 may need to be shifted to 2018. The target for net debt to decline as a percentage of GDP by 2015 may also be unachievable if growth is flat in the coming year. An accounting change in how profit from the Bank of England's bond buying program are shown is designed to reduce Treasury's borrowing and bring Britain closer to this target. Osborne says Britain's actions for austerity measures, spending cuts and increasing taxes have helped keep interest rates low to pay off debt.

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Ezra Klein on the three questions on which the Supreme Court will decide after three days of hearings on March 26-28, 2012- the Anti-Injunction act, The Individual Mandate, and Medicaid Expansion. Related to the Individual Mandate question are Severability issues.

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In a new book, "Back to Work: Why We Need Smart Government for a Strong Economy," Bill Clinton says he would have done two things differently. He would have raised the debt ceiling in the first two years when the Democrats had majorities in both houses of Congress. He also thinks President Obama's criticism of Wall Street has been harsh and counterproductive. Clinton is strongly critical of the Republicans for their anti-government ideology.