Sovereign Debt

Examples of Sovereign Debt in the following topics:

• The Public Debt

  • Government debt, also known as public debt, or national debt, is the debt owed by a central government.
  • Government debt, also known as public debt, or national debt, is the debt owed by a central government.
  • Sovereign debt usually refers to government debt that has been issued in a foreign currency.
  • Bonds issued by national governments in foreign currencies are normally referred to as sovereign bonds.
  • Investors in sovereign bonds denominated in foreign currency have the additional risk that the issuer may be unable to obtain foreign currency to redeem the bonds.

• Deficit Spending, the Public Debt, and Policy Making

  • Government debt is the debt owed by a central government.
  • Government debt can be categorized as internal debt (owed to lenders within the country) and external debt (owed to foreign lenders).
  • Sovereign debt usually refers to government debt that has been issued in a foreign currency.
  • Otherwise the debt issuance can increase the level of (i) public debt, (ii) private sector net worth, (iii) debt service (interest payments) and (iv) interest rates.
  • US public debt consists of two components:

• Income Security Policy

  • Governments issue government bonds in their own currency and sovereign bonds in foreign currencies.
  • Debt issued by government-backed agencies is called an agency bond.

• The 11th Amendment

  • The Eleventh Amendment to the United States Constitution deals with each state's sovereign immunity.

• The International Monetary Structure

  • This includes commercial banks, hedge funds and private equity, pension funds, insurance companies, mutual funds, and sovereign wealth funds.
  • They are closely tied to central banks that issue government debt, set interest rates and deposit requirements, and intervene in the foreign exchange market.

• Shay's Rebellion and the Revision of the Articles of Confederation

  • The legislature's response to the shaky economy was to put emphasis on maintaining a sound currency by paying off the state debt through levying massive taxes.
  • Historian David Szatmary writes that the timing of the rebellion "convinced the elites of sovereign states that the proposed gathering at Philadelphia must take place. " Some states, Massachusetts among them, delayed choosing delegates to the proposed convention partly because in some ways it resembled the "extra-legal" conventions organized by the protestors before the rebellion became violent.

• Popular Consent, Majority Rule, and Popular Sovereignty

  • Although Rousseau argues that sovereignty (or the power to make the laws) should be in the hands of the people, he also makes a sharp distinction between the sovereign and the government.
  • The "sovereign" is the rule of law, ideally decided on by direct democracy in an assembly.
  • With the American Revolution, Americans substituted the sovereignty in the person of King George III, with a collective sovereign—one composed of the people.
  • Rather, the consent of the governed and the idea of the people as a sovereign had clear 17th and 18th century intellectual roots in English history.

• The Articles of Confederation

  • First, they expressly provided that the states were sovereign.
  • (A sovereign state is a state that is both self-governing and independent. ) The United States as a Confederation was much like the present-day European Union.

• The Budgeting Process

  • Since 1970, the U.S. federal government has run deficits for all but four years (1998–2001) contributing to a total debt of $16.1 trillion as of September 2012.
  • The United States public debt is the money borrowed by the federal government of the United States through the issuing of securities by the Treasury and other federal government agencies.
  • US public debt consists of two components: Debt held by the public includes Treasury securities held by investors outside the federal government, including that held by individuals, corporations, the Federal Reserve System and foreign, state and local governments.
  • Debt held by government accounts or intragovernmental debt includes non-marketable Treasury securities held in accounts administered by the federal government that are owed to program beneficiaries, such as the Social Security Trust Fund.
  • Debt held by government accounts represents the cumulative surpluses, including interest earnings, of these accounts that have been invested in Treasury securities.

• Inherent Powers

  • Inherent powers are those powers that a sovereign state holds.