Rate increases debt creation | alan dixon ~ pathos crescendo | pulse | linkedin
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The document summarizes how interest rate increases can lead to higher government debt. Specifically: - When interest rates rise, bondholders earn higher returns which increases their wealth and spending. This boosts demand in markets like stocks, forex, commodities, and bonds. - Higher bond demand pushes up bond prices. Many traders on stock exchanges are also bondholders, so stock prices rise too. - Countries must pay higher yields on existing bonds due to increased rates. This makes the overall interest paid on outstanding government debt increase as well. - As a result, national debt levels rise because governments are paying more in interest costs despite no new borrowing.
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Rate increases debt creation | alan dixon ~ pathos crescendo | pulse | linkedin
- 1. 2/21/17, 7:54 PMRATE INCREASES DEBT CREATION | Alan Dixon ~ PathosCrescendo | Pulse | LinkedIn Page 1 of 2https://www.linkedin.com/pulse/rate-increases-debt-creation-alan-dixon-pathoscrescendo Here’s how to focus at work despite A!er reading the Uber sexism post, I’m Does Amazon "Get"​Classical Music RATE INCREASES DEBT CREATION Published on April 7, 2016 The reason why em countries or nation states experience debt when raising interest rates is due to the fact that when interest rates rise the affect is greater return on bonds for bondholders, thus more wealth in the bond holders accounts of whom in turn generate more demand on the markets with respect to stockmarket, forex, & commodity & bond values; thus greater price increases on benchmark trading indexes of which are mainly bond holders hence stock exchange traders. Therefore debt increases because countries and nation states are paying a higher yield on bonds due to greater demand & higher gov standard interest yield hence affects of an interest rate rise. ~PATHOSCRESCENDO Top stories from Editors Picks Edit article Alan Dixon ~ PathosCrescendo Independent Marketing Director DECA Inc, VUBS LLC, W… Alan Dixon ~ PathosCrescendo Independent Marketing Director DECA Inc, VUBS LLC, Walgreens, 85 articles Leave your thoughts here… 0 comments 0 0 0
- 2. 2/21/17, 7:54 PMRATE INCREASES DEBT CREATION | Alan Dixon ~ PathosCrescendo | Pulse | LinkedIn Page 2 of 2https://www.linkedin.com/pulse/rate-increases-debt-creation-alan-dixon-pathoscrescendo Help Center About Careers Advertising Talent Solutions Sales Solutions Small Business Mobile Upgrade Your Account LinkedIn Corporation © 2017 User Agreement Privacy Policy Ad Choices Community Guidelines Cookie Policy Copyright Policy Send Feedback political polarization Dave Crenshaw on LinkedIn more sure than ever that so!ware engineers must practice what they preach Greg Leffler on LinkedIn Better Than Everyone Else? Andrew Goldstein on LinkedIn Looking for more of the latest headlines on LinkedIn? Discover more stories Language