1. © Robert G Parker – UW-CISA 2010 Societal Trends and Issues Economy Sovereign Debt S-1 Economic Dichotomy

2. Societal Trends and Issues Economic Dichotomy 2 Sovereign Debt

3. Societal Trends and Issues Economic Dichotomy 3 Sovereign Debt

4. Societal Trends and Issues Economic Dichotomy 4 Sovereign Debt Canada - 2006 $569, 362$259,044

5. Societal Trends and Issues Economic Dichotomy 5 Canadian Debt Canadian Federal Debt to GDP 45 % Ontario Debt $220 Billion Quebec Debt (Including Hydro) $218.5 Billion Canada’s debts are at a Ratio of 90% of GDP

6. 6 Societal Trends and Issues Canadian & Other Sovereign Debt US Federal Debt is 98.62% of GDP

7. 7 Societal Trends and Issues Canadian & Other Sovereign Debt Canadian Federal & Provincial Debt is Approximately 90% of GDP US Federal Debt is 98.62% of GDP States are Not Allowed to Budget a Deficit Greece 143% Italy 119% Ireland 96% Portugal 93% Belgium 97% Reuters Source: Eurostat, Bank For International Settlements

8. 8 Societal Trends and Issues Canadian & Other Sovereign Debt Difficulty in Obtaining Credible Information

9. 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

10. USA GDP – 2009 $14.1 Trillion USA GDP – 2011 $14.5 Trillion

11. 11 Business Reaction Recognise and understand that sovereign debt issues are a threat Assess the risks to each particular business Develop risk and threat mitigation plans Sovereign Currency Risk Management Employ hedges and currency swaps Contract in a stable currency Limit exposure period – short term contracts Contract in kind – commodities Obtain Accurate, Non-Conflicting Information