In addition, as currencies depreciate, debt-ridden emerging markets see the effective cost of interest payments increase.
In the past, when the currency depreciated this debt ballooned, causing further problems.
Members of a new, "hard" European currency would leave behind a stock of depreciating euro debt and might be rewarded by lower borrowing costs on debt issues in the new currency.
Alternatively, he said, with Germany out of the euro, the currency would depreciate, cutting national debts in real terms and allowing debtor countries to regain competitiveness.
Debt used to finance "things"–credit card purchases, cars, any depreciating asset is "bad" debt and should be minimized.
It should not be a surprise to anyone that the dollar is depreciating, given our debt levels and our negative trade balance.
In August, when the real depreciated a little, that debt became less onerous as exporters' extra earnings boosted tax revenues.
In addition, a good number of them are using graduate and continuing education programs, restructured debt, fully depreciated dorms, and occasional accounting tricks to produce a clean audit.
Yet, time and again this leads to runaway inflation, depreciating currency, fiscal insolvency, debt overhang, and, most importantly, long-term economic problems.
That was important because conservative Northern Democrats, many of whom had sympathized with the Confederacy, were in a position to obstruct or deny repayment on the full value of the public debt by paying creditors in depreciated paper money, or "greenbacks".
Then, in 1998, the ruble sharply depreciated, prompting a default on Russia's public debt.
