The simplest way to achieve this would be to require banks exposed to southern European debt to raise more capital.

Higher and pro cyclical equity capital requirements on banks, combined with a requirement to raise contingent long term debt debt that converts into equity in a crisis is a better way forward.

External debt of the capital importing developing countries 1982, Figures

1. Debt indicators for capital importing developing countries, 1983 1993 11

The country requires human and physical capital to raise productivity and achieve sustained growth.

Small peasants without capital were trapped in a vicious cycle of debt.

1. Foreign debt of the capital importing developing countries, 1983 1993 10

Where realistic debt restructuring scenarios indicate capital shortfalls, across the board conversion of bank debt into equity will be necessary.

Thus, medium to long term strategies are needed to raise domestic capital for this purpose.

Meanwhile, the US cannot meet its next debt payment unless Congress and the president reach an agreement to raise the national debt ceiling.

Frankly, no one knows what legislative deal will be struck to raise the debt ceiling.

1. Debt indicators for capital importing developing countries, 1982, 1987 and 1992 6

Table. External debt of the capital importing developing countries, 1982, 1987 1992 a

Equity capital will increase relative to assets but, under current policies, it will increase because banks reduce their assets, not because they raise capital.

This is important to decide, as it will influence how you raise capital for the project.

Probably the most difficult thing that I had to do was raise the capital for this.

Indeed, the main international concern has been US policymakers reluctance to raise the government s debt ceiling!

Thus, a higher proportion of debt in the firm's capital structure leads to higher ROE.

In issuing contingent capital, banks would have to pay a higher interest rate than they would on ordinary long term debt, because debt investors will face the true cost of capital, not the government subsidized cost.

Banks often oppose higher equity asset ratios, because equity capital is more expensive than debt capital. But this is precisely because of the lemon effect.

A US Congress engaged in political grandstanding might fail to raise the debt ceiling, triggering a technical default.

Nonetheless, we continue to transfer capital to rich countries to pay interest on our foreign debt.

Lastly, debt growth was somewhat restrained by the dynamism of non debt related capital movements, especially foreign direct and indirect investment (in equity capital), as well as the flow of resources to short term deposits in the region apos s banking systems, reflecting in part a repatriation of capital.

In some countries with high levels of debt and impaired growth, fiscal stimulus could raise the risk premium on sovereign debt and be counterproductive others have more flexibility.

It cannot wait to inject capital into the banks. It must take immediate steps toward debt mutualization.

Southern Europe was experiencing a sell off of sovereign debt and a massive withdrawal of private capital.

Moreover, some debtor countries which have gone through debt restructurings soon resumed their access to capital markets.

(c) As the balance of payments deteriorated, especially after interruptions of capital inflows and sometimes massive flights of capital, the national currency was sharply devalued. This sharp devaluation increased further the cost of debt servicing and the debt to GDP ratio.

As they struggle to raise new capital, European banks and insurers are likely to be forced to sell overseas assets.

(e) Raise the level of investment in human capital, in particular in the literacy and numeracy of the general population

Capital account regulations could play a role in providing room for counter cyclical monetary policies that smooth debt ratios and spending and in improving external debt profiles.

This is why equity capital held by financial institutions typically is more than twice as expensive as debt capital and why these institutions try to minimize its use.

As capital fled the country between July 2011 and January 2012, France s TARGET debt increased by 95 billion.

The Depression had rendered capital markets incapable of absorbing large quantities of government (or, indeed, any other) debt.

The Fund also actively monitors capital market developments, and is implementing a more systematic assessment of debt sustainability.

This is a mistake. The European Commission should have introduced capital requirements on banks holdings of public debt.

External macroeconomic forces trade, debt management, direct investment, capital flows and access to technology must support development objectives.

Moreover, Africa apos s heavy external debt servicing obligations discouraged private investors and the influx of new capital.

Developing countries' alleged gains from capital market liberalization have been widely discussed (although recent studies raise some doubts about these benefits).

The Paris Club has also recently allowed debt buy backs or prepayment operations.21 In 2005, a number of debtor countries offered a prepayment at par of whole or part of outstanding Paris Club debt, taking advantage of lower interest rates to raise funds on capital markets for that purpose or using their extra cash funds.

In that year, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, making it the largest centre of IPOs in the world and the easiest place to raise capital.

Higher equity capital requirements, for example, require banks to fund themselves with relatively more equity and relatively less debt.

These include trade, debt management, direct investment, capital flows, access to technology, subregional and regional cooperation, and other areas.

Peter Diamandis Probably the most difficult thing that I had to do was raise the capital for this. It was literally impossible.

Raise it. Raise it up.