Australia on world's worst debt trajectory

Discussion in 'Markets & Economies' started by SpacePete, Apr 15, 2015.

  1. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,433
    Likes Received:
    40
    Trophy Points:
    48
    The present government could change direction and cut wasteful spending. Our path is determined by political expediency and global economic conditions.
     
  2. systematic

    systematic Well-Known Member

    Joined:
    Jun 6, 2010
    Messages:
    6,649
    Likes Received:
    341
    Trophy Points:
    83
    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 ....
     
  3. willrocks

    willrocks Well-Known Member Silver Stacker

    Joined:
    May 10, 2012
    Messages:
    7,777
    Likes Received:
    7,199
    Trophy Points:
    113
    The deficit isn't the problem. The problem is private debt.

    The deficit could become a problem if/when banks require a bail-out.
     
  4. systematic

    systematic Well-Known Member

    Joined:
    Jun 6, 2010
    Messages:
    6,649
    Likes Received:
    341
    Trophy Points:
    83
    The BANKS are the problem ......
     
  5. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,605
    Likes Received:
    4,391
    Trophy Points:
    113
    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.
     
  6. RetardedMonkey

    RetardedMonkey Active Member Silver Stacker

    Joined:
    Apr 13, 2011
    Messages:
    4,062
    Likes Received:
    17
    Trophy Points:
    38
    Location:
    Brisbane, Australia
    They should just drop it by 75 points and be done with it. Kick Sydney's afterburners on and watch property explode.
     
  7. willrocks

    willrocks Well-Known Member Silver Stacker

    Joined:
    May 10, 2012
    Messages:
    7,777
    Likes Received:
    7,199
    Trophy Points:
    113
    That goes without saying. But what can you do about it?
     
  8. Holdfast

    Holdfast Well-Known Member Silver Stacker

    Joined:
    Oct 15, 2009
    Messages:
    4,625
    Likes Received:
    1,124
    Trophy Points:
    113
    Location:
    Australia
    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

    [​IMG]
     
  9. willrocks

    willrocks Well-Known Member Silver Stacker

    Joined:
    May 10, 2012
    Messages:
    7,777
    Likes Received:
    7,199
    Trophy Points:
    113
    Meanwhile the AUD will implode.
     
  10. JulieW

    JulieW Well-Known Member Silver Stacker

    Joined:
    Oct 14, 2010
    Messages:
    13,064
    Likes Received:
    3,292
    Trophy Points:
    113
    Location:
    Australia
    Here's an interesting reading via The Guardian:

     
  11. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

    Joined:
    Nov 15, 2010
    Messages:
    18,605
    Likes Received:
    4,391
    Trophy Points:
    113
    [​IMG]

    :D

    You can get this on a T-shirt jules.
     
  12. bordsilver

    bordsilver Well-Known Member Silver Stacker

    Joined:
    May 23, 2012
    Messages:
    8,717
    Likes Received:
    304
    Trophy Points:
    83
    Location:
    The rocks
    Shortlisted for the stupidest Guardian article of the year (and that's against some stiff competition).
     
  13. Naphthalene Man

    Naphthalene Man Active Member Silver Stacker

    Joined:
    Feb 25, 2010
    Messages:
    5,150
    Likes Received:
    7
    Trophy Points:
    38
    Location:
    Hunter Valley, NSW
    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.
     
  14. smk762

    smk762 Active Member Silver Stacker

    Joined:
    Sep 5, 2014
    Messages:
    1,255
    Likes Received:
    4
    Trophy Points:
    38
    Location:
    Westralia
    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.
     
  15. Phiber

    Phiber Well-Known Member Silver Stacker

    Joined:
    Nov 21, 2012
    Messages:
    1,588
    Likes Received:
    28
    Trophy Points:
    48
    Location:
    Australia
    They are all as useless or clueless as each other. Thinking different muppets will produce different outcomes is wishful thinking IMO.
     
  16. doomsday surprise

    doomsday surprise Well-Known Member Silver Stacker

    Joined:
    Dec 15, 2011
    Messages:
    1,291
    Likes Received:
    30
    Trophy Points:
    48
    Location:
    El Dorado
    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.
     
  17. SpacePete

    SpacePete Well-Known Member Silver Stacker

    Joined:
    Mar 1, 2014
    Messages:
    12,433
    Likes Received:
    40
    Trophy Points:
    48
    They maintain division in the community. This suits certain agendas.
     
  18. willrocks

    willrocks Well-Known Member Silver Stacker

    Joined:
    May 10, 2012
    Messages:
    7,777
    Likes Received:
    7,199
    Trophy Points:
    113
  19. willrocks

    willrocks Well-Known Member Silver Stacker

    Joined:
    May 10, 2012
    Messages:
    7,777
    Likes Received:
    7,199
    Trophy Points:
    113
  20. TheEnd

    TheEnd Well-Known Member

    Joined:
    Oct 6, 2011
    Messages:
    2,496
    Likes Received:
    26
    Trophy Points:
    48
    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. :eek:
     

Share This Page