🅾️High interest payments can: ⚜️Reduce the money available for welfare programs and services. ⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development. ⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive. ⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.
📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.
🅾️High interest payments can: ⚜️Reduce the money available for welfare programs and services. ⚜️Decrease funds for capital expenditures (CapEx), which are crucial for long-term investments in infrastructure and development. ⚜️Affect the country's sovereign credit ratings negatively, making borrowing more expensive. ⚜️Create a cycle of debt where the government ends up borrowing more to pay off existing loans.
📍Relevant concept here : Ricardian equivalence- It is an economic theory suggesting that government borrowing doesn't affect the overall level of demand in the economy because people anticipate higher taxes in the future to pay off the debt, leading to an increase in savings.
Start with a fresh view of investing strategy. The combination of risks and fads this quarter looks to be topping. That means the future is ready to move in.Likely, there will not be a wholesale shift. Company actions will aim to benefit from economic growth, inflationary pressures and a return of market-determined interest rates. In turn, all of that should drive the stock market and investment returns higher.
How to Invest in Bitcoin?
Like a stock, you can buy and hold Bitcoin as an investment. You can even now do so in special retirement accounts called Bitcoin IRAs. No matter where you choose to hold your Bitcoin, people’s philosophies on how to invest it vary: Some buy and hold long term, some buy and aim to sell after a price rally, and others bet on its price decreasing. Bitcoin’s price over time has experienced big price swings, going as low as $5,165 and as high as $28,990 in 2020 alone. “I think in some places, people might be using Bitcoin to pay for things, but the truth is that it’s an asset that looks like it’s going to be increasing in value relatively quickly for some time,” Marquez says. “So why would you sell something that’s going to be worth so much more next year than it is today? The majority of people that hold it are long-term investors.”
