Australia No Longer Has a Debt Ceiling

[southerncross]

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.

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).

It's closer to 14K and it's federal debt with a $100 Million a day in interest. That debt is only paid with taxes as the Gov't has no money of it's own. The amount owed per person is probably more than double the 14K figure though as it should be based on the number of taxpayers that fund it. The junk laying around peoples houses is paid for after tax, + GST so it has nothing to do with it.

 

[Earthjade]

Why did the Lib's bother to pay back the previous Labor Gov't debt then ?

The debt as a whole is public and private because DEBT BASED MONEY doesn't care if it is the government or if it is a private person that uses it. Look at this chart and try to guess when the biggest banking deregulation reforms took place in Australia:

In the greatest year of surplus (FY 2008), total Australian government debt still totalled 60 billion dollars. The government has never been out of debt.
The government could screw us with austerity for twenty years and it wouldn't matter - the debt will keep rising. The surplus we had was just a drop in the bucket compared to the torrent of money Australians were willing to borrow to speculate on stocks and real estate.
THE MONEY ITSELF IS THE PONZI and the problem is that it is that the RATE OF DEBT GROWTH must keep rising. Look at the US:

When private sector debt fell off, the government scrambled to make up the shortfall. This is not a coincidence.

 

[Big A.D.]

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.

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).

It's closer to 14K and it's federal debt with a $100 Million a day in interest. That debt is only paid with taxes as the Gov't has no money of it's own. The amount owed per person is probably more than double the 14K figure though as it should be based on the number of taxpayers that fund it. The junk laying around peoples houses is paid for after tax, + GST so it has nothing to do with it.

It's a pretty simple sum: 300,000,000,000 / 23,000,000 = 13,043.47

That gives you a per capita figure.

If we were paying $100 million a day in interest then we'd be borrowing money at over 10% p.a. so I think you may have your figures wrong. We're paying ~3.5% p.a. and it's costing us ~$30 million a day.

$30 million a day!!11! is to $300 billion what $30 is to $300,000 (about $11k per year on a $300k debt).


The reference to household junk was simply to show that we have the capacity to do a bit of belt-tightening if necessary.

 

[errol43]

We don't necessarily have generations to pay the $300 to $500 billion debt back.. Most of it is borrowed on the short term money market and has to be refinanced every 90 days.

If the lenders tighten their belts, then the Australian Government is in deep Cra.

As a point of interest what about the debt that State and Local governments owe. Also what about Private debt ie credit cards, personal loans etc.

Recent figures showed that the 80% of the population could not get their hands on $2000 cash if needed.

Let us hope the debt bubble gets bigger or else the whole structure will come tumbling down.

Why do we get obsessed with Federal debt when we owe far more debt and we don't have the means to raise our income to pay for it.?

Superannuation contributions surely must have helped the Australian economy or else we would have to borrow even more $$$ overseas to keep the growth of consumer goods going.

Regards Errol 43

 

[Byron]

We don't necessarily have generations to pay the $300 to $500 billion debt back.. Most of it is borrowed on the short term money market and has to be refinanced every 90 days.

If the lenders tighten their belts, then the Australian Government is in deep Cra.

As a point of interest what about the debt that State and Local governments owe. Also what about Private debt ie credit cards, personal loans etc.

Recent figures showed that the 80% of the population could not get their hands on $2000 cash if needed.

Let us hope the debt bubble gets bigger or else the whole structure will come tumbling down.

Why do we get obsessed with Federal debt when we owe far more debt and we don't have the means to raise our income to pay for it.?

Superannuation contributions surely must have helped the Australian economy or else we would have to borrow even more $$$ overseas to keep the growth of consumer goods going.

Regards Errol 43

Got a link for your 80% can't get 2k at short notice? Not doubting, it sounds like interesting reading.

Makes me glad rates are low atm, more paid off the loan every f/night and the price being pushed higher and higher. But it could all change fast....

 

[TheEnd]

We don't necessarily have generations to pay the $300 to $500 billion debt back.. Most of it is borrowed on the short term money market and has to be refinanced every 90 days.

If the lenders tighten their belts, then the Australian Government is in deep Cra.

As a point of interest what about the debt that State and Local governments owe. Also what about Private debt ie credit cards, personal loans etc.

Recent figures showed that the 80% of the population could not get their hands on $2000 cash if needed.

Let us hope the debt bubble gets bigger or else the whole structure will come tumbling down.

Why do we get obsessed with Federal debt when we owe far more debt and we don't have the means to raise our income to pay for it.?

Superannuation contributions surely must have helped the Australian economy or else we would have to borrow even more $$$ overseas to keep the growth of consumer goods going.

Regards Errol 43

Got a link for your 80% can't get 2k at short notice? Not doubting, it sounds like interesting reading.

Makes me glad rates are low atm, more paid off the loan every f/night and the price being pushed higher and higher. But it could all change fast....

I heard on the news sometime this year that most in the U.K are living week by week and if they ever lost their job they would be screwed...... Mostly all because of high real estate prices sucking the lives out of everyones wages which is the same in this country as far as I can tell. Oh and electricity prices too!

 

[jroly]

In the past shelter was cheap but food was expensive, today it is the opposite.

Not sure what would be worse if you lost your job, a home but no food on the table or overweight eating mc happy meals in the gutter.