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Greece
Economic
People in Greece will continue to enjoy
a laid-back lifestyle with the government
taking care of them …..
For as long as Germany is willing to pay
for it!
anon
May 24, 2012
© 2012-Robert G Parker
Page: 1
Greece
Economic
May 24, 2012
© 2012-Robert G Parker
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Greece
Economic
2010 GDP
EU Total - € 22,268,387
Greece
May 24, 2012
-
€ 230,173
Greece Represents 1% of the EU GDP
© 2012-Robert G Parker
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Greece
Economic
But it appears as if Greece could
cause the Euro currency to falter
May 24, 2012
© 2012-Robert G Parker
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Economy
May 24, 2012
USA Debt Ceiling
© 2012-Robert G Parker
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Economy
USA Sovereign Debt
To Wall Street
From Main Street
May 24, 2012
© 2012-Robert G Parker
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Canada’s Debt Crisis
April 26, 2012
Total provincial net debt (debt minus
financial assets) is expected to reach more
than $515-billion this year (2012-13), up
more than $200-billion since 2007-08.
As a percentage of the economy (GDP), the
burden of provincial debt has increased to
29% this year from 21% in 2007-08.
Add on the current federal net debt of $663billion and Canadians are leaving a legacy
of over a trillion dollars in direct debt to the
younger generation - more than 65% of
GDP, up from 54.5% in 2007-08. .
Every Canadian family is being put into hock to the tune of
$122,000 by federal and provincial government borrowing
May 24, 2012
© 2012-Robert G Parker
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Canada’s Debt Crisis
"Total provincial net debt (debt minus
financial assets) is expected to reach
more than $515-billion this year (201213), up more than $200-billion since
2007-08. As a percentage of the
economy (GDP), the burden of
provincial debt has increased to 29 per
cent this year from 21 per cent in 200708," the article notes.
"Add on the current federal net debt of $663-billion and Canadians are
leaving a legacy of over a trillion dollars in direct debt to the
younger generation - more than 65 per cent of GDP, up from 54.5 per
cent in 2007-08.
May 24, 2012
© 2012-Robert G Parker
Page: 8
Canada’s Debt Crisis
If the Saskatchewan is the poster
child for fiscal prudence, then
Ontario is the black sheep of the
federation.
"(Ontario) is running a deficit
that's ten times larger than
Quebec, which has always been
the champion when it comes to
running deficits," said the
Canadian Taxpayers
Federation's Gregory Thomas.
And while Ontario struggles with its deficit, Thomas cautions
that over $10 billion of its tax dollars are being eaten up by
interest payments on debt this year alone.
May 24, 2012
© 2012-Robert G Parker
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Canada’s Debt Crisis
Canadian GDP
May 24, 2012
© 2012-Robert G Parker
Page: 10
Canada’s Debt Crisis
Quebec’s total debt in March 2010 was $160.117 billion, according to
Finance Quebec. This represents 53.2% of its Gross Provincial Product.
Then there is Hydro Quebec, municipal and various other debt
obligations which brings the total to $218.48 billion or 72.6% of its
economy. Add to that Quebec’s share of the federal debt and the burden
is 117.6% of GDP.
Ontario is also worrisome with a net debt of $220 billion in 2010-11 and a
projected debt of $245 billion in 2011-12. This $220 billion represents
37% of Ontario’s Provincial Product. Add to its share of the federal debt
and the burden in Ontario is 82% of GDP. Add to that possibly another
10% in the form of Provincially-secured municipal, school, hospital or
hydro debt.
Canada’s debts are at a ratio of 90% of GDP mostly due to chronic
overspending by Quebec and Ontario. Their profligacy is in stark
contrast with Canada’s three westernmost provinces.
Source – Diane Francis – Financial Post – April 6, 2012
May 24, 2012
© 2012-Robert G Parker
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Canada’s Debt Crisis
May 24, 2012
© 2012-Robert G Parker
Page: 12
Canada’s Debt Crisis
2012-2013
Provincial debt projected for current fiscal year
$515 billion
Current Federal net debt
$663 billion
Provincial and Federal debt
$1,178 billion
Canada’s GDP
$1,624 billion
Calculated Ratio
73%
Diane Francis - Estimate
90%
Provincial debt may or may not include crown corporations and may be net
of provincial assets.
Federal debt is net of federal assets and may be net of non-current debt,
such
as superannuation
© 2012-Robert G Parker
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May 24, 2012
World
What If There Is
Not A Solution?
In the short term
all costs are fixed;
in the long term
we are all dead
The long run is a misleading guide to current affairs. In
the long run we are all dead. John Maynard Keynes
May 24, 2012
© 2012-Robert G Parker
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Economy
Economists Are at a Crossroad
Result
Action
Stimulate the economy to create jobs
Increased debt that the country cannot
repay
Government prints money and devalues
its currency with resulting inflation
QE 1 QE 2
Government runs out of borrowing
capacity
Implement an austerity program
Increased unemployment and possible
civil unrest
Increased government costs for social
and unemployment programs
Less production with less goods to sell
in foreign markets
May 24, 2012
© 2012-Robert G Parker
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Economy
Economists Are at a Crossroad
Voters in France Voted for Less Austerity
May 24, 2012
© 2012-Robert G Parker
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Economy
May 24, 2012
© 2012-Robert G Parker
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Economy
Economic Dichotomy
99%
1%
Is This Really the Case?
May 24, 2012
© 2012-Robert G Parker
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Economy
Economic Dichotomy
May 24, 2012
© 2012-Robert G Parker
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Economy
Economic Dichotomy
Is This:
Good
Bad
Neither
Cannot Tell
Don’t Care
May 24, 2012
© 2012-Robert G Parker
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Economy
Canadian Success Story
Viking Air – Victoria BC
Purchased De Havilland assets from
Boeing
Re manufactured DHC-1 Beavers
Serviced other aircraft
Saw market for an upgraded DHC-6
Twin Otter
55 Order Backlog worth $350 Million
Employs 450 staff in Victoria and 200
in Calgary for final assembly
May 24, 2012
© 2012-Robert G Parker
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Economy
Viking Air – Victoria BC
April 2012 – Flew
two aircraft to
Asia via the Arctic
on a sales trip
Flew to South
America on a
sales trip
Increased the
order book
backlog
Then in May
May 24, 2012
© 2012-Robert G Parker
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Economy
May 24, 2012
© 2012-Robert G Parker
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