The National Debt Thread of Doom

the butcher

I shall start this thread off by introducing you all to the clock of doom: http://www.financedublin.com/debtclock.php

Now with that shock over with I shall introduce you to our long term bonds we have taken out until 2020.

Outstanding long term bonds to be paid back. Have a look here -> http://ntma.ie/GovernmentBonds/bondOutstanding.php

2011 4.3 billion
2012 4.6 Billion
2013 6 billion
2014 6.6 billion
2016 6.4 billion
2018 6.7 billion
2019 7.7 billion
2019 6 billion
2020 7.9 billion

Outstanding long term bonds until 2020 will cost us in total 56.2 billion.

Now...onto Short term bonds. Much more dangerous ->
http://www.ntma.ie/ShortTermPaper/tbResults.php

Maturity Date / Amount Due
31 Jul 09 1.3 billion
01 Sep 09 1.55 billion
18 Sep 09 1.35 billion
20 Sep 09 800 million
30 Sep 09 1 billion
30 Oct 09 1 billion
01 Dec 09 1.55 billion
15 Dec 09 750 million
31 May 10 1.35 billion
June 10 1.2 billion
Oct 10 0.8 billion

Outstanding short term bonds until 2010 will cost us in total 12.65 billion.

The point of this thread is to highlight the importance of our national debt. All these figures might not mean anything to your average joe..but it does.

Check out the July Exchequer figures and you'll find 2.5 billion spent on servicing the interest on the national debt alone!! That means the first 6 months, the tax take, 10% of that went towards the interest!
http://www.finance.gov.ie/documents/exchequerstatements/2009/July09pdfvers.pdf

the butcher

IRELAND will spend €5.2 billion – 16% of all tax collected – on servicing a record national debt of €116 billion in 2010, as the country pays interest rates of almost 6% to fund Government spending

http://www.irishexaminer.com/business/sneyidqlql/rss2/#ixzz0K0j9TKkK&D

Let's end this with a history lesson:

A blast from the past - 1986

Mr. J. Bruton wrote:

I would regard the income tax burden at present as being too high, certainly in so far as the ordinary [880] medium paid and lower paid workers are concerned. Until we can succeed in reducing the services for which we use income tax, namely, the service of debt and payment for services that we enjoy as a community, we are going to face considerable problem in reducing the income tax burden.

http://historical-debates.oireachtas.ie/D/0366/D.0366.198605140019.html

In 1990, 70% of the amount raised in income tax was needed to service the annual cost of the national debt. In 2009, the government forecasts the ratio will go to more than 43%, equivalent to a debt pile of €79bn, before reaching more than 47%, or €89bn in 2010. In 2011, the debt ratio reaches
almost 48%, a debt pile of €92.3bn.


This is what An Bord Snip report says:

Bord Snip wrote:

In 2009 over 11% of estimated tax revenues will be used for this purpose, compared with a figure of about 4½% of tax revenues as recently as 2007.

Six months in and we are ALREADY at 10% compared to 11% for the whole year that is estimated!

ei.sdraob

sickening ain't it?

anyways thanks for the figures

it think we need to convert these billions into figures that people would understand

for example how many hospitals can be build? how many miles of motorways laid? how much extra each "remaining" taxpayer has to bear

Riskymove

personally I see the fact that we were still paying 4.5% in 2007 as a lost opportunity of the boom