The bigger the stock of debt, the bigger that surplus needs to be.
About a quarter of the surplus needs to go for important priorities.
On its website, right under a very large American flag Hahn's proclaims: "For more than 35 years, Hahn's World of Surplus has been the one-stop shop for all your military and surplus needs". If you now say to yourself: "I don't have any military or surplus needs," well, think again.
The government called upon the international donor community for help, but, by failing to find measures to stimulate agricultural production, Ethiopia remained unable to finance its own development and to create the surplus needed to relieve its own population.
For that to happen, he said, the Eurozone has to strengthen its banking system, and Germany, the currency zone's powerhouse with its large surplus, needs to boost domestic demand.
IN ITS most recent semi-annual report to Congress, America's Treasury mentioned that:Within the euro area, countries with large and persistent surpluses need to take action to boost domestic demand growth and shrink their surpluses.
Unemployment will stay high until wages fall enough to support the huge surpluses needed to spark growth and hiring.But we all know the rub: euro-area members' biggest trading partners are...other euro-area members.
When fiscal consolidation turns on a predetermined debt ratio to be achieved at a predetermined point in the future, the primary surpluses needed to hit those targets are such that the effect on the private sector undermines the assumed growth rates and thus derails the planned fiscal path.
If bond investors start to lose confidence in a country's eventual willingness to run even the small primary surpluses needed to service a large debt, they'll demand higher rates, which requires much larger primary surpluses, and you can go into a death spiral.
Can the rest of the world produce the export surpluses needed to fill the gap?
