Government Debt, It's For Your Own Good.

This article on Australia’s Looming Debt Crisis is also at the Tea Party Site.

 

Sooner or Later

The most overwhelming impending Danger To Australia is Debt. Australia’s debt is not so bad some will say, they will justify it by saying it’s not as high as other countries debts. How that justifies a pointless debt is beyond me and at any rate the continued crazy borrowing by Labor means sooner or later we will have a very high national bankrupting debt to deal with. Is a Greece type scenario so hard to stomach that we dismiss the possibility ….even when government policy seems hell bent on achieving it?

Apart from a need to finance reckless spending there is no justification for the debt this country labours under. Countries like the US have massive military commitments to pay, we do not.

The need to pay for social and welfare services is no excuse either. The Liberal government paid off the previous Labor government’s debt and ran such services to the point they could even afford to give supposed upper class welfare and still have a surplus.

The surplus would have been higher without the upper class welfare but at least there was no debt.

The Liberal government did trim the services back a little to help reduce the debt.

Labor hacked at the services and still have a massive growing debt.

Labor are saying Australia can afford to service the debt but that is a spurious measure of any financial success because thanks to this debt over $5 billion dollars a year leaves this country in interest alone.

And then Labor has the nerve to just take more off us. And it looks like they think if you don’t have any more well that’s just your problem. You should have planned for this. Especially if you voted for them!

Part of the justification of the debt is measuring it against our GDP. “It’s only at 30% of our GDP” the debt apologists whine, “The US and UK debts are 70% of their GDP and Japans is 200% of their GDP so it is OK to have ours at 30%.”

The reality is that when combined with state and council debts the total government debt of Australia is much more than 30% of the GDP that the debt apologists squeak about.

On a state level QLD is at $85.5 billion the highest of any state. Premier Anna Bligh originally justified her out of control borrowing by saying they’d be fools not to borrow when times are good. Times turned bad quite quickly and money is being pulled through the nose of Queenslanders to pay for this reckless debt. Anna took a prosperous low debt state and trashed it.

Anna says the debt is like a mortgage debt as opposed to a credit card debt. Actually Anna the debt is like most of Australia’s government debt, it’s unnecessary.

All this debt has in turn increased the level of household debt. More people are relying on credit cards and other borrowings to make ends meet. People whose wages once kept them free of debt are now being dragged under by the Labor government borrow and spend recklessly philosophy.

But remember, ‘it’s only 30% of our GDP.’ Remember that when your powers cut off because you can’t afford to pay or you lose your house because you didn’t allow for paying back reckless government debt when you bought your home.

Here’s reality, Australia has one of the lowest national debts of any country, for now. The debt is rising and rising fast. It won’t take long for it to become as high Japan or the US.

When it comes to all the bogus green schemes the government will finally say “We can’t afford it, we have too much debt” which is what the US has done.

We do not need to have any debt and having debt means we are paying interest.

Money that could have supported our hospitals, infrastructure etc. all gone.

And a debt to GDP comparison is very misleading. Since the money is borrowed by the government it should be compared to the governments ‘income’, the same way people’s individual loans are measured and that is based on income.

After all your ability to service your own debts is not measured on a collective income measurement which is essentially what the GDP is.

The government does not possess an entire years GDP, they tax it. Out of the entire GDP of around $1.23 trillion the amount the federal government ends up with is around $250 billion.

And that doesn’t include the amounts sucked out of the economy by reckless free spending state governments and councils.

On an income basis the government debt is well and truly over 100% of actual income.

The federal government’s debt is well over of one year’s worth of revenue collection. Of that one years’ worth of money they have to pay for welfare, social services, infrastructure and their own exorbitant and undeserved wages etc.

On top of that there’s the $8 billion in foreign aid they give away and the billions promised to the UN from the carbon tax scam.

And when it comes to helping Australia, forget it. You can’t pay your bills? That’s your bad luck.

You lose your home? Again, your Bad luck. And on top of that if there’s a disaster the various governments will hit you with all sorts of levies and taxes.

Their lack of planning must be paid for.

By you.

So if you lose your home and are declared bankrupt because you couldn’t keep up with the government forced cost of living rises just remember Australia’s total government debt is not as high as other countries debts.