The present government could change direction and cut wasteful spending. Our path is determined by political expediency and global economic conditions.
The USA is at least 19 trillion dollars in debt, the big 4 banks are making record profits for their biggest shareholders (that are American banks) ... the Australian dollar is trading at 77cents US ... and our somehow our deficit is a problem ....
The deficit isn't the problem. The problem is private debt. The deficit could become a problem if/when banks require a bail-out.
All government debt is a problem, just because ours' pales into insignificance against the magnitude of other nations is not the point. Deficits and surpluses are funded by usurping the property of individuals.
They should just drop it by 75 points and be done with it. Kick Sydney's afterburners on and watch property explode.
Folk quickly forget how Peter Costello and the RBA lost billions of dollars. The decision sent prices tumbling to $US315/oz as then-Federal treasurer Peter Costello argued that gold no longer played a significant role in the international financial system. http://destructionofmoney.blogspot.com.au/2009/01/gold-sell-off-proves-to-be-expensive.html Who could forget! 10 January 2009
Shortlisted for the stupidest Guardian article of the year (and that's against some stiff competition).
The point was not about what Costello did or didn't do re gold but the fact that we had a surplus in the sov wealth fund before Rudd gave it away.
When a company trades when insolvent, management is subject to civil penalties, criminal prosecution and creditor compensation. When a government does it, management blames someone else and seeks to penalise the productive citizen it supposedly represents.
They are all as useless or clueless as each other. Thinking different muppets will produce different outcomes is wishful thinking IMO.
Yeah, these lib vs labor arguments are ridiculous. The Libs won't get the government into surplus in the next ten years. They are fast becoming as useless as the last labor government was. Whatever happened to the "debt and deficit disaster"? Conveniently forgotten now.
The down turn is surely coming. W.A is sufferering very badly from the new iron ore prices and is basically already in recession. Next month the RBA will most likely lower interest rates and keep them low for at least 12 months to try and boost the economy which may also cause another boost to RE market. More people will take on even bigger mortgages to try and stay in the RE game before thinking its too late. Then 3 major car brands will be closing down making thousands redundent. The next 1-3 years ar'nt looking good. I'm going to sit on the side and wait and watch this slow trainwreck happen right before us.