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Table To Accompany Part 4 of the Eurozone Debt Crisis Series

Table To Accompany Part 4 of the Eurozone Debt Crisis Series

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TABLE THAT ACCOMPANIES PART 4 TO THE EUROZONE DEBT CRISIS SERIES

Overview of Indebtedness of Key EMU Nations, and that of the United States
Indebtedness as a % of 2011 Nominal GDP Current Gross Govt Debt Present Value of Future Pension & Medical Obigations Target 2 Balances EFSF/ESM Contingent Liabilities Net Debt / 2011 Nominal GDP 2011 GDP ($ Billions) Implied Net Debt in Current Dollars (A) Germany 76.52% 290.00% -12.94% 5.90% 3.6x $ 3,577 $12,858 France 87.56% 327.00% 0.71% 4.43% 4.2x $ 2,808 $11,785 Portugal 87.09% 317.19% 33.90% 0.00% 4.4x $ 236 $1,034 Ireland 101.68% 261.11% 70.42% 0.00% 4.3x $ 213 $923 Italy 119.69% 234.67% 10.09% 6.39% 3.7x $ 2,180 $8,084 Greece 139.35% 564.12% 48.23% 0.00% 7.5x $ 281 $2,111 Spain 70.22% 238.00% 12.79% 6.23% 3.3x $ 1,485 $4,860 USA 99.32% 282.20%

3.8x $ 15,227 $58,094

If Total Indebtedness rose dramatically due to rescue actions, under-estimation of Liabilities etc Grossing up 10%, the New Net Debt/2011 GDP = Grossing up 20%, the New Net Debt/2011 GDP = Grossing up 50%, the New Net Debt/2011 GDP = 4.0x 4.3x 5.4x 4.6x 5.0x 6.3x 4.8x 5.3x 6.6x 4.8x 5.2x 6.5x 4.1x 4.5x 5.6x 8.3x 9.0x 11.3x 3.6x 3.9x 4.9x 4.2x 4.6x 5.7x

Ongoing Operating Impact of Contingent Pension/Medical Obligations Present Value Obligations % Present Value of Future GDP - Next 70 Years) Unfunded program Funded programs Total Burden % GDP 9.20% 23.30% 32.50% 9.70% 25.30% 35.00% 10.10% 20.80% 30.90% 3.50% 16.50% 20.00% 9.70% 25.20% 34.90% 10.90% 20.20% 31.10% 5.40% 21.40% 26.80% 8.20%

Impact of a Drop in 2011 GDP on the Indebtedness Ratio Tak ing as Numerator Implied Net Debt in (A) above If 2011 GDP drops 5% in 2012 If 2011 GDP drops 10% in 2012 If 2011 GDP drops 20% in 2012 3.8x 4.0x 4.5x 4.4x 4.7x 5.2x 4.6x 4.9x 5.5x 4.6x 4.8x 5.4x 3.9x 4.1x 4.6x 7.9x 8.4x 9.4x 3.4x 3.6x 4.1x 4.0x 4.2x 4.8x

Overview of Balance Sheets of Private Sector Financial Institutions
Germany Total Non Cash Assets $11,072 France $6,536 Portugal Ireland Italy $5,255 Greece Spain $6,338 USA $20,019

Multiple of 2011 Nominal GDP

3.1x

2.3x

2.4x

4.3x

1.3x

Sources: IMF data for GDP; Jagdeesh Gok hale-Cato Institute and Final EUROSTAT Report on Pension Liabilities; US General Accountability Office for US Pensions Target 2 Data ECB, EFSF/ESM Data ECB Private Sector Financial Balance sheets, National Central Bank s Year of Data: 2005-2008 for some of the Pension Data; Forecast on Operating Impact of Pension Obligations Jagdeesh Gok hale, Cato Institute

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