Its back to the 80's - Servicing National Debt to hit 50% of PAYE next year: Goodbody

kerrynorth

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According to Goodbody Stockbrokers the cost of servicing the national debt next year will hit €5.2billion, or about 50% of PAYE income tax revenues. In the deepest darkest period of the 80's servicing the national debt accounted for up to 2/3rds of PAYE. We are likely to be around that figure in 2011. At €5.2billion servicing the national debt will account for circa 16-17% of all tax revenues.
 


mccafferty cat

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Apr 28, 2008
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Shocking to think that half of the PAYE that leaves your pay packet every month is going directly to pay-off foreign lenders.

When people say they're willing to pay a bit more tax during hard times, they didn't think it was going to pay the bonuses of Middle East and Asian fatcats
 

ForestGhetto

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I'm sure it's well worth it - didn't we save Anglo-Irish and Bank of Ireland and AIB and isn't that the most important thing in the world? If we didn't have the Irish banks we would have had to make do with nasty foreign banks like NIB and Ulster bank and Halifax. That would be dreadful. I am delighted to work to pay off the banks' debt for the next decade.

It's a lesson to the banks in the future: anytime they fail we'll be there to pay for their mistakes. That's how capitalism works - when a large limited company in the private sector is insolvent then it's time for the public to step in and borrow money to pay its debts. And when that company makes profits by the billion it should spend the money on itself or return it to its shareholders in dividends.
 

atlantic

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That's not how capitalism works.This is Corporate socialism introduced by government interference .These banks would be let fail if they allowed capitalism to work.
I'm sure it's well worth it - didn't we save Anglo-Irish and Bank of Ireland and AIB and isn't that the most important thing in the world? If we didn't have the Irish banks we would have had to make do with nasty foreign banks like NIB and Ulster bank and Halifax. That would be dreadful. I am delighted to work to pay off the banks' debt for the next decade.

It's a lesson to the banks in the future: anytime they fail we'll be there to pay for their mistakes. That's how capitalism works - when a large limited company in the private sector is insolvent then it's time for the public to step in and borrow money to pay its debts. And when that company makes profits by the billion it should spend the money on itself or return it to its shareholders in dividends.
 

yosef shompeter

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Great to have some good news Nuvadongs, but don't your realize that the other side of the equation is the rate that we can turn over the govt bonds at maturity date.
At the moment this is very low, but if the China slowdown proves serious or if the Iran Saudi thing blows up or any number of the wild cards out there -- you name it? Putin and Ukraine (and Trump as prez). A vote for Brexit... A damp squib election with Enda in some hodge-podge coalition of independents who can't get anything done...
A strident move on the part of the EU to harmonize corporate tax rate...
Any number of black and not so black swans out there
 

silverharp

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you cant spend GDP and the attempt at Hubris seems a bit deluded? in the 80's the borrowing rate of interest was high. Now its low, a doubling of the the interest rate the gov. pays wouldnt be outrageous but it would mean all the PAYE would go on servicing
 

Nudavongs

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Great to have some good news Nuvadongs, but don't your realize that the other side of the equation is the rate that we can turn over the govt bonds at maturity date.
At the moment this is very low, but if the China slowdown proves serious or if the Iran Saudi thing blows up or any number of the wild cards out there -- you name it? Putin and Ukraine (and Trump as prez). A vote for Brexit... A damp squib election with Enda in some hodge-podge coalition of independents who can't get anything done...
A strident move on the part of the EU to harmonize corporate tax rate...
Any number of black and not so black swans out there
Re the bit in bold, they have no power to do that.

Lots of things could go off the rails and eurozone bond yields could go crazy too. However, the good thing about our position now is that we're not on the periphery financially any more; we're nearer the core. There are a large number of EZ countries whose yields would be hit before ours, including the biggies of Spain and Italy (and possibly France).

And Mario did say he'd do "whatever it takes.....".
 

Nudavongs

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you cant spend GDP and the attempt at Hubris seems a bit deluded? in the 80's the borrowing rate of interest was high. Now its low, a doubling of the the interest rate the gov. pays wouldnt be outrageous but it would mean all the PAYE would go on servicing
I think those figures from October 2014 are out of date. In 2015, loads of things turned out better than forecast.

I've tried to get more up to date figures but I can't find any.
 

silverharp

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I think those figures from October 2014 are out of date. In 2015, loads of things turned out better than forecast.

I've tried to get more up to date figures but I can't find any.
thats all well in good but thats looking at a gently sloping line and assuming everything just ticks along. there is no buffer against the next systemic shock
 

Nudavongs

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thats all well in good but thats looking at a gently sloping line and assuming everything just ticks along. there is no buffer against the next systemic shock
I'm copying this from post #9.

Lots of things could go off the rails and eurozone bond yields could go crazy too. However, the good thing about our position now is that we're not on the periphery financially any more; we're nearer the core. There are a large number of EZ countries whose yields would be hit before ours, including the biggies of Spain and Italy (and possibly France).

And Mario did say he'd do "whatever it takes.....".

But yes.....bad things might happen.
 

hammer

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Thankfully we are re-financing at about 1% all the time.

€200 billion max at 1% would be €2 billion interest per annum.

What a success that would be as at one stage the projection was €10 billion PER ANNUM after the disaster left behind by FF/Greens.

Vote Mehole for Taoiseach :)
 

Jack O Neill

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Thankfully we are re-financing at about 1% all the time.

€200 billion max at 1% would be €2 billion interest per annum.

What a success that would be as at one stage the projection was €10 billion PER ANNUM after the disaster left behind by FF/Greens.

Vote Mehole for Taoiseach :)
Debt in 2011 =€93bn, Debt after 5 years of Fine Gael €182 bn , no wonder your so proud:roll:
 
S

Silvermint

Great to have some good news Nuvadongs, but don't your realize that the other side of the equation is the rate that we can turn over the govt bonds at maturity date.
At the moment this is very low, but if the China slowdown proves serious or if the Iran Saudi thing blows up or any number of the wild cards out there -- you name it? Putin and Ukraine (and Trump as prez). A vote for Brexit... A damp squib election with Enda in some hodge-podge coalition of independents who can't get anything done...
A strident move on the part of the EU to harmonize corporate tax rate...
Any number of black and not so black swans out there

Greece 10Year 8.743 %

Vótáil Syriza Fein, like? :shock2:
 

VHF

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Shocking to think that half of the PAYE that leaves your pay packet every month is going directly to pay-off foreign lenders.

When people say they're willing to pay a bit more tax during hard times, they didn't think it was going to pay the bonuses of Middle East and Asian fatcats
Do you feel you have a better quality of life for you, or your family given the sheer amount of direct and indirect tax paid in this country?
Look at the state of A&E, public transport is mediocre, local government service, cost of living, middle class 2.something kids and family dog squeezed for every cent, child minding costs a second mortgage, rip-off prices no matter where you go. Waste of taxes on quango's and other bullsh/t parasitic leeches who suck the state tit dry. Bloated public and civil service bill. Government reform - na, I see same old parish pump politics. Look you either accept that this is the stereo typical Irish dna, it will never change. You'll continue paying over half your salary for flup all back but watch those 'connected' inner circle freeloaders get sweetheart deals to maximise their personal wealth at the cost of you and me!

There is a very very serious problem in Ireland. Gov hell bent on mass immigration to replace the smart ones you were fortunate to have bailed out of the damn place. Imagine the state of the place in 10 years from now.
 

Nudavongs

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Do you feel you have a better quality of life for you, or your family given the sheer amount of direct and indirect tax paid in this country?
Look at the state of A&E, public transport is mediocre, local government service, cost of living, middle class 2.something kids and family dog squeezed for every cent, child minding costs a second mortgage, rip-off prices no matter where you go. Waste of taxes on quango's and other bullsh/t parasitic leeches who suck the state tit dry. Bloated public and civil service bill. Government reform - na, I see same old parish pump politics. Look you either accept that this is the stereo typical Irish dna, it will never change. You'll continue paying over half your salary for flup all back but watch those 'connected' inner circle freeloaders get sweetheart deals to maximise their personal wealth at the cost of you and me!

There is a very very serious problem in Ireland. Gov hell bent on mass immigration to replace the smart ones you were fortunate to have bailed out of the damn place. Imagine the state of the place in 10 years from now.
Yeah. The country is in such a mess that we need to tighten immigration controls to keep out De Forriners.
 


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