10. DEFLATION IS GOOD NEWS
FOR SHOPPERS*
2006: 100 (income)/10(Price) = 10 Units of Good.
2007: 100 (income)/5 (Price) = 20 Units of Good.
*Who still have jobs.
12. Deflation increases the
value of debt.
A loan of 100 euros today
may be worth 107 euros
when it is repaid, decreasing
the purchasing power of the
debtor at the very time when
the economy requires
increased levels of
consumption and investment.
13. TOTAL VALUE
OF IRISH DEBT
HAS
DOUBLED
2002: 876 BN
2008: 1,600 BN
€1.6 Trillion.
Source: IMF
18. AND
HAS THERE BEEN
A COLLAPSE IN
PRIVATE SECTOR
CREDIT?
Hell Yes.
Source: Central Bank, Sectoral Developments in Private Sector Credit, Sept. 2009.
24. #BUDGET10
Capital investment
Mortgage default
slashed
moratorium~beware!
70 million for flood
Carbon taxes
victims
Pension reform
Tax breaks for
mooted.
startups
National Recovery
Credit review for
Bonds
banks
25. SUMMARY OF PART 2.
Budget is 2nd of 4. More cuts to come, more pain to be
endured.
35. INCREASE INFRASTRUCTURAL
INVESTMENT
64th
1.Why? What we have
sucks.
2.We can’t compete on
wages anymore.
3.We have lots of
construction workers.
Source: Global Competitiveness Report
38. MUNICIPAL BONDS
Definition. Debt instruments issued by local authorities to
finance investment projects.
Municipal bonds can finance important local projects that
won’t get funded otherwise.
An aging population requires increased pension provision. We
need to compete on infrastructural excellence.
Municipal bonds are working now in the US and Europe: Build
America just increased and re-issued their tax-efficient
subsidised debt product to the tune of 56 billion