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Australian debt

Discussion in 'The Pub' started by elcamino, Mar 2, 2012.

  1. Quoted by: Ross Greenwood of Money News..

    Right now the Federal Government is at pains to tell everyone – including us the mug-punters and the International Monetary Fund, that it will not exceed its own, self-imposed, borrowing limits.

    How much? $200 billion. And here’s a worry.

    If you work in a bank’s money market operation; or if you are a politician; the millions turn into billions and it rolls off the tip of the tongue a bit too easily. but every dollar that is borrowed, some time, has to be repaid. By you, by me and by the rest of the country.

    Just after 5 o’clock tonight I did a bit of math for Jason Morrison ( Sydney radio presenter). But it’s so staggering its worth repeating now.

    First thought; Gillard, Swan, Wong, before that Rudd, all of the Labor Cabinet, call these temporary borrowings, a temporary deficit.

    Remember Those Words : Temporary Deficit.

    The total Government debt will end up around $200 billion.
    So here’s a very basic calculation .. I used a home loan calculator to work it out….. it’s that simple..
    $200 billion is $2 hundred thousand million.

    The current 10 year Government bond rate is 4.67 per cent. I worked the loan out over a period of 20 years. Now here’s where it gets scary …. really scary.

    The repayments on $200 billion, come to more than one and a quarter billion dollars – every month – for 20 years. It works out we – as taxpayers – will be repaying $15.4 billion in interest and principal every year .. $733 for every man woman and child – every year.

    The total interest bill over the 20 years is – get this – $108 billion.

    Remember, this is a Government, that just 4 years ago, had NO debt. NO debt.

    In fact it had enough money to create the Future Fund, to pay the future liabilities of public servants’ superannuation, and it had enough to stick $20 billion into the Building Australia Fund …..

    A note was sent to me which explains that the six leading members of the Government, from Ms Gillard down, have a collective work experience of 181 years, but only 13 in the private sector.

    If you take out of those 13 years the number that were spent as trade union lawyers, 11, only two years were spent in the private sector.

    So out of those 181 years:

    - no years spent running their own business
    - no years spent starting their own business
    - no years spent as a director of a family business or a company
    - no years as a director of a public company
    - no years in a senior position in a public company
    - no years in a senior position in a private company
    - no years working in corporate finance
    - no years in corporate or business restructuring
    - no years working in or with a bank
    - no years of experience in the capital markets
    - no years in a stock-broking firm
    - no years in negotiating debt facilities with banks
    - no years running a small business
    - no years at the World Bank or IMF or OECD
    - no years in Treasury or Finance.

    But these people have plunged Australia into unprecedented debt.

    Well, in a way you can’t blame them.
    It’s clear the electorate did not do their homework, because the Government is there by right.

    Ah, but they are Labor and people vote for them because Labor is good for the working family – right???

    If you have read this you may like to pass it on to your friends to help educate a little as you, them and I, will be repaying the above.
  2. I wondered where this Bullsh!t came from.

    Australia's budget defecit at the end of this financial year will be approximately $37Billion
  3. That's all well and good. But, given the recent turn of events which casts serious doubts on the legitimacy of democracy in this country, I ask you this OP.....

    What the FUCK are we meant to do about it?
  4. Attached Files:

  5. If you wish to scare the shit out of yourself have a look at Australia's net IIP liability position verses GDP 8-[
  6. Deficit is not debt AOFM figures are 223,387 million foreign debt @31/12/11, the budget deficit will only add to that.
  7. Can anyone explain this to me?
  8. Which bit? Explaining the whole thing in simple terms would require a several thousand word essay, this is not out of luck me thinks. The important definitions are-
    (these terms refer to national rather than government figures).

    Balance of payment: Is the amount of money flowing into (or in our case out of) a country, sort of like the national budget

    Current account deficit: Is the net amount of money being spent overseas less all income derived from overseas, kind of like a national profit/loss if you will.

    Net IIP: Is the amount of money a nation owes to, or is owed by, foreign parties, total foreign debt if it is a liability position.

    The rest is pretty much gibberish and very hard to explain, the numbers are very "flexible" so take them for what they are worth. I hope this helps clarify somewhat.
  9. That article is simplistic mumbo jumbo nothing more.
    All governments work on debt that's a given.
  10. If I remember rightly the last time this type of stuff was banded around this included public listed company and statutory authority debits,why I needed to feel responsible for Alan Bond and Christopher Skases borrowing was beyond me.
  11. Australia is one of the most well placed countries in the world financially. And of course it has a debt - it SHOULD have a debt. A well run household (or country) manages this debt to enable positive things to happen. Buying a house for example. Or maybe a bike.

    This is pure Telegraph alarmism.

    That's my thoughts anyway.
  12. The 223 billion is solely government foreign debt, the 850 billion is total foreign debt.
  13. I'm getting sick of all this shit and negativity and Smee is correct. In the current economic situation, this government, any government, needs to borrow money to meet its obligations, both for recurrent spending and investment. It needs to do so wisely and not fritter or waste money, but there are demands and pleas from economists now for the government to abandon it's political objective to achieve a budget surplus in the 2013 FY.

    As regards the governments experience or lack of it, do you really seriously believe that the Liberal/Nats are any more experienced at running an economy? Do you believe that Costello was a financial genius who single handedly organised the budgets? All a minister does is set a direction, the people who devise and implement the plans are all civil servants who generally do not move when the government changes.

    This current ALP government can hardly be described as left wing traditional labour. They're pretty well aligned with business. Their policies are, by and large, business and investment friendly.

    And all those brilliant economists with years of management and financial experience? Did they predict or prevent the GFC.....?
  14. MY god.

    Look it up!


    And I'll Quote;
    "Net debt is now expected to peak at $106.6 billion in 2011‑12 (7.2 per cent of GDP), falling to 5.8 per cent of GDP by the end of the forward estimates."

    Now look that in comparison to say, the USA. They've past 100% of GDP !!!!


    We're doing really really really well guys !

    The facts don't lie, even if they make Labor look like they've actually done a pretty good job shock horror!
  15. My favourite of such figures is:

    According to this total, the “World” is in external debt to the tune of just under 60 trillion US dollars. Or 95% of the entire world’s GDP - CIA World Factbook.

    So watch out those Alien entities that own the world's debt may come back and foreclose. Then where would we be. ;)
  16. I blame the Illuminati!
  17. Just lately it seems like Netrider has got a crossed connection with the Tele's website.
  18. If I had a choice between Wayne Swan and his cadre of amateurs, and Ross Greenwood as Treasurer......
  19. We're also slipping in whines about omg the failure of democracy as if we had a president. Laughable lack of basic Civics~ (proptip: Presidents are the leaders you pick yourself instead of the ones picked and changed by a party/coalition)