© Robert G Parker – UW-CISA 2010

Societal Trends and Issues

Economy

Sovereign Debt

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Economic Dichotomy

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Societal Trends and Issues

Economic Dichotomy Sovereign Debt

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Societal Trends and Issues

Economic Dichotomy Sovereign Debt

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Societal Trends and Issues

Economic Dichotomy Sovereign Debt

Canada - 2006 $569, 362$259,044

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Societal Trends and Issues

Economic Dichotomy Canadian Debt

Canadian Federal Debt to GDP 45%

Ontario Debt $220 BillionQuebec Debt (Including Hydro) $218.5 Billion

Canada’s debts are at a Ratio of 90% of GDP

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Societal Trends and IssuesCanadian & Other Sovereign Debt

US Federal Debt is 98.62% of GDP

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Societal Trends and IssuesCanadian & Other Sovereign Debt

Canadian Federal & Provincial Debt is Approximately 90% of GDP

US Federal Debt is 98.62% of GDPStates are Not Allowed to Budget a Deficit

Greece 143%Italy 119%

Ireland 96%Portugal 93%

Belgium 97%

Reuters Source: Eurostat, Bank For International Settlements

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Societal Trends and IssuesCanadian & Other Sovereign Debt

Difficulty in Obtaining Credible Information

U.S. National Debt Clock 2011-July 18, 2011

Societal Trends and Issues

Sovereign Debt

June 29, 2011 $14.46 Trillion

98.6% of Calendar Year 2010 GDP

USA GDP – 2009$14.1 Trillion

USA GDP – 2011$14.5 Trillion

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Business Reaction

Recognise and understand that sovereign debt issues are a threatAssess the risks to each particular businessDevelop risk and threat mitigation plans

Sovereign Currency Risk ManagementEmploy hedges and currency swapsContract in a stable currencyLimit exposure period – short term contractsContract in kind – commoditiesObtain Accurate, Non-Conflicting Information