Treasurer Joe Hockey has made a deal with the Greens Leader, Christine Milne to abolish the debt ceiling in relation to Australia borrowing from financial markets. - Heard this Via Channel 7 News Australia. Have a bad thought that when Labor Keynesian economists get control of the public purse that debt hence inflation will explode. Will Joe Hockey actually make any plans to pay back the $500 Billion Dollars? Or just keep piling on the debt?
You are right it has lol! But seriously I think its pretty obvious we will NEVER have a surplus again.......Some did a comparison showing we are in just as much trouble as the U.S if you do the maths by population vs debt....... And Mike Malohey said the 200B borrowed was just outrageous......Thanks Labor!
Not stocks imo...the market is red-hot and due for a decent correction. Property...farm-land with good water...good soil...trees. Gold...silver. H
We gathered the colonies into a Federation of States in 1901. More than 100 years later (2009 if I recall) Supreme President Rudd had the bright idea to have a debt limit because debt is all he knew and that's what the Americans have. We've had the debt ceiling for 3 or 4 years and a Federal government of 112 years. Why is this an issue? Life goes on and so will paying off the newest Labor debt.
Agreed, there was a bit of sarcasm in what I had to say, but hell.. that's why the market is rallying so hard in the US right now.
I'm disappointed sometimes at the wilful ignorance displayed on these boards by people who have their heads so stuck up their ideological arses that they don't understand something very very simple: 1) Currency that is backed by nothing is a ponzi scheme. 2) New dollars are created when people go into debt - banks make this money out of thin air. 3) The system can only survive as long as the debt load increases - it is NOT designed to ever get paid back. That's not how it works. Debt is the fuel that keeps this going. If you reign in the debt, the ponzi scheme will begin to go in reverse and collapse, which is something that central banks will move heaven and earth to prevent, because such an implosion would be cataclysmic. You cannot go in reverse and reduce the debt without crashing the financial system. 4) People who talk about how governments should be responsible and "reign in the debt" do not understand points 1 to 3. Therefore, it doesn't matter who is in power, whether Labor or Liberal, the debt must increase to keep the system running "as per normal". Playing this along party lines is utterly stupid and you should give yourself a swift uppercut if you think one party is responsible and anti-debt while the other is a profligate spender.
Whether or not whichever clique currently in power at Canerra imposes a moving-goalpost 'limit' on their own spending is factually irrelevant. There is, and will continue to be, a debt ceiling on the Australian government. The ceiling is the point when buyers refuse to roll-over newly-issued Australian government bonds at the offered price and effective rate.
+1 America proved this: all a "debt ceiling" does is give politicians better tools to attack each other with, and if that happens to be to the detriment of the people they supposedly represent then so be it. Its a completely arbitrary figure. The more important thing is is how long a debt will take to be paid back, how much it will cost or if it's even possible to pay back at all. With proper information, that's stuff that the markets can figure out pretty well by themselves, and anyone who claims to be a "responsible economic manager" knows it.
And...the Greens Leader, Christine Milne has what qualifications in economics to make such a decision? http://www.aph.gov.au/Senators_and_Members/Parliamentarian?MPID=ka5#personal
It took 6 year for the debt to pile from K Rudd and Juliar Labor govt adminstration. Now it will take 3 or more generations to pay off the debt. I can see your grand childrens will still pays this debt off. Not in my lifetime.
Can't see it making any real difference, if the debt ceiling remained in place they'd just raise it every time they needed to. It's still disappointing though
It's about $13k per person. If it takes you three generations to repay a $13k debt, your family is doing it wrong. (And if your family is a typical Australian family, you junk laying around your house that you never use to the value of about $5,500).
Sure sure, interest plus interest, you are not economist anyway. Even a real one did it wrong anyway. Pulling figure out of thin air. Let see how long they takes to pay it off.
