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Home > Service At Your FingerTips (Issue No.33)
Service At Your FingerTips (Issue No.33)
Myfirsthomeltd. Newsletter

Editor’s Letter

<<< Issue No. 32

Dealing with Debt 

We know that in 2010 the debt of the richer members of the G20 is expected to rise close to 100% of GDP. Trying choices will be taken on how to service the interest payments and bring down the size of the debt burden.

The current- potentially temporary - respite in the financial Crisis is allowing governments to take stock of the impact of rescue packages on National Finances.

Policy choices are limited and potentially unpopular:

  • cuts in public expenditure,
  • reduction in public sector workforces,
  • steeper taxes
  • encouraging inflation,

These serve as the most likely instruments.

These will have a dampening effect on the economy and slow the rate of recovery. It will be interesting to see the options made by different nations.

The impact will be severe on public sector suppliers - advisers, lawyers and other service providers could experience some of the biggest cutbacks. Redundancies in these firms will be an inevitable consequence.

Looking forward to the next issue - which may be sooner than expected.......

 

 

 

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