Australian Politics Forum - Why are we in debt

Kat

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Re: Why are we in debt
Reply #15 - Apr 1^st, 2013 at 10:56am

MOTR wrote on Apr 1^st, 2013 at 10:55am:

woof woof wrote on Apr 1^st, 2013 at 10:51am:

so if we can service the debt then in your eyes the debt is not a problem?

what happens when 100% of our revenue is required to service the debt.

Is the debt still a non issue caus ein your words, were servicing the debt.

Were dam screwed.

Well then we have a debt problem. Actually long before that point we have a debt problem. Got any idea, woof woof, how far we are away from that problem.

He hasn't got any idea, period.

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woof woof Gold Member Offline Australian Politics Posts: 1518 Gender:	Re: Why are we in debt Reply #16 - Apr 1^st, 2013 at 10:59am were in deep sheet now, swans Gunna rack up another 20 billion, tehn the coalition will be left with policies that result in probably another 60billion, so by ende of 2014, I call it that our debt will be 240-250billion.
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MOTR

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Re: Why are we in debt
Reply #17 - Apr 1^st, 2013 at 11:04am

At the moment our net debt as a percentage of GDP is something like 10% and our interest payments are about 0.5%. Last budget we collected about 21% of GDP in taxation receipts. We don't have a servicing problem. Keep in mind under Howard, taxation receipts were as high as 24%. I'm not arguing against fiscal discipline, I'm just saying the hysteria is not required.

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Hunt says Coalition accepts IPCC findings

"What does this mean? It means that we need to do practical things that actually reduce emissions."

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John Smith Gold Member Offline Australian Politics Posts: 75132 Gender:	Re: Why are we in debt Reply #18 - Apr 1^st, 2013 at 11:09am MOTR wrote on Apr 1^st, 2013 at 11:04am: I'm just saying the hysteria is not required. remove the hysteria and where would that leave the noalition? no policy AND no hysteria ... I can see their numbers falling already
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John S

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Re: Why are we in debt
Reply #19 - Apr 1^st, 2013 at 11:13am

Quote:

Australia is expected to record a Government Debt to GDP ratio of 20.7 percent in 2012. Government Debt To GDP in Australia is reported by the International Monetary Fund. Historically, from 1989 until 2011, Australia Government Debt To GDP averaged 19.9 Percent reaching an all time high of 31.7 Percent in December of 1994 and a record low of 9.7 Percent in December of 2007. Generally, Government debt as a percent of GDP is used by investors to measure a country ability to make future payments on its debt, thus affecting the country borrowing costs and government bond yields. This page includes a chart with historical data for Australia Government Debt To GDP.

http://www.tradingeconomics.com/australia/government-debt-to-gdp

As you can see the debt to GPD is 20.7%

Explain why did we have debt when Howard was in power if we had budget surplus all the time?

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'The worst Labor Government is always better then the best Liberal government for Australians workers'

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MOTR

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Re: Why are we in debt
Reply #20 - Apr 1^st, 2013 at 11:18am

It's important not to confuse net debt with gross debt. Net debt is the best measure of a government's indebtedness and it's servicing requirements. Howard delivered a number of surpluses and that along with asset sales allowed him to pay down debt. Howard also benefitted from the economic reforms of the previous government, a mining boom and from growth in domestic demand driven by an escalation in household debt.

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Hunt says Coalition accepts IPCC findings

"What does this mean? It means that we need to do practical things that actually reduce emissions."

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Mnemonic

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Re: Why are we in debt
Reply #21 - Apr 1^st, 2013 at 12:59pm

woof woof wrote on Apr 1^st, 2013 at 10:05am:

If all is well and the gov isonly running temporary defeceits as you call them.

Why are they looking at taxing super, why ar ethey stealing dormant bank accounts.

A gov with good fiscal policy and position would not be taking thes emeasures.

That alone tells me that labor has a massive problem on their hands.

It's more likely that the reason they're doing it is because they're embarrassed about breaking a promise to return the budget to surplus and it has nothing to do with a budget deficit and net debt being the problem itself. They are working hard to vindicate themselves over a broken promise so that on 30th June 2013 they can surprise us and say, "we said we wouldn't have a surplus, now we have one, promise kept!!!!" They are so embarrassed over their loss of face that they would do something so stupid.

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Mnemonic

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Re: Why are we in debt
Reply #22 - Apr 1^st, 2013 at 1:02pm

MOTR wrote on Apr 1^st, 2013 at 11:18am:

It's important not to confuse net debt with gross debt. Net debt is the best measure of a government's indebtedness and it's servicing requirements. Howard delivered a number of surpluses and that along with asset sales allowed him to pay down debt. Howard also benefitted from the economic reforms of the previous government, a mining boom and from growth in domestic demand driven by an escalation in household debt.

What about liquidity? If we do have a financial crisis here in Australia and the government panicked and sold off its assets, that wouldn't be good. It's not good when you're forced to sell your assets.

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MOTR

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Re: Why are we in debt
Reply #23 - Apr 1^st, 2013 at 1:59pm

Mnemonic wrote on Apr 1^st, 2013 at 1:02pm:

MOTR wrote on Apr 1^st, 2013 at 11:18am:

It's important not to confuse net debt with gross debt. Net debt is the best measure of a government's indebtedness and it's servicing requirements. Howard delivered a number of surpluses and that along with asset sales allowed him to pay down debt. Howard also benefitted from the economic reforms of the previous government, a mining boom and from growth in domestic demand driven by an escalation in household debt.

What about liquidity? If we do have a financial crisis here in Australia and the government panicked and sold off its assets, that wouldn't be good. It's not good when you're forced to sell your assets.

It's not good when poor economic policy leaves you unemployed and you're forced to sell your assets to put food on the table.

Former Austrian chancellor Bruno Kreisky famously once said, “A few billion more in debt will give me less sleepless nights than a few hundred thousand out of work."

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Hunt says Coalition accepts IPCC findings

"What does this mean? It means that we need to do practical things that actually reduce emissions."

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Swagman

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Re: Why are we in debt
Reply #24 - Apr 1^st, 2013 at 3:12pm

John S wrote on Apr 1^st, 2013 at 11:13am:

Quote:

Australia is expected to record a Government Debt to GDP ratio of 20.7 percent in 2012. Government Debt To GDP in Australia is reported by the International Monetary Fund. Historically, from 1989 until 2011, Australia Government Debt To GDP averaged 19.9 Percent reaching an all time high of 31.7 Percent in December of 1994 and a record low of 9.7 Percent in December of 2007. Generally, Government debt as a percent of GDP is used by investors to measure a country ability to make future payments on its debt, thus affecting the country borrowing costs and government bond yields. This page includes a chart with historical data for Australia Government Debt To GDP.

http://www.tradingeconomics.com/charts/australia-government-debt-to-gdp.png

http://www.tradingeconomics.com/australia/government-debt-to-gdp

As you can see the debt to GPD is 20.7%

Explain why did we have debt when Howard was in power if we had budget surplus all the time?

......because his Govt started in debt. The surpluses had to go toward paying off Labor's debt.

The same thing is happening in the States and will happen again federally.

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muso Gold Member Offline Posts: 13151 Gladstone, Queensland Gender:	Re: Why are we in debt Reply #25 - Apr 1^st, 2013 at 3:47pm What needs to happen is that Simon Crean and any other ALP members who have a hint of common decency and who oppose the superannuation tax, should resign from parliament and force an election.
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woof woof Gold Member Offline Australian Politics Posts: 1518 Gender:	Re: Why are we in debt Reply #26 - Apr 1^st, 2013 at 4:06pm If they vote against the gov they'll be sacked, just gotta ask yourself. If they are in it for themselves or the people and you'll get the answer as to what they'll do?? Crean I think might vote against cause he's probably gunna lose his seat anyway so he's really got nothing to lose??
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skippy.

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Re: Why are we in debt
Reply #27 - Apr 1^st, 2013 at 4:12pm

woof woof wrote on Apr 1^st, 2013 at 4:06pm:

If they vote against the gov they'll be sacked, just gotta ask yourself.

If they are in it for themselves or the people and you'll get the answer as to what they'll do??

Crean I think might vote against cause he's probably gunna lose his seat anyway so he's really got nothing to lose??

Crean won't lose his seat, you have a better chance of having an IQ above 50 . Roll Eyes

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Kat

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Re: Why are we in debt
Reply #28 - Apr 1^st, 2013 at 4:16pm

woof woof wrote on Apr 1^st, 2013 at 4:06pm:

If they vote against the gov they'll be sacked, just gotta ask yourself.

If they are in it for themselves or the people and you'll get the answer as to what they'll do??

Crean I think might vote against cause he's probably gunna lose his seat anyway so he's really got nothing to lose??

Crean is one of the very FEW Labor pollies who do deserve to remain.

After the post-election blood-letting, I wouldn't be surprised to see him emerge as Opposition Leader, having
the unenviable job of rebuilding the party after Gillard and her cohorts have destroyed it.

He'd certainly be the best man for that job!

As for Gillard, Roxon, Wong, Macklin, Conroy etc, we'd be best-off if they were out of parliament altogether.

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muso Gold Member Offline Posts: 13151 Gladstone, Queensland Gender:	Re: Why are we in debt Reply #29 - Apr 1^st, 2013 at 4:34pm woof woof wrote on Apr 1^st, 2013 at 4:06pm: If they vote against the gov they'll be sacked, just gotta ask yourself. Perhaps for a very short time. What happens if the budget is defeated? It's called loss of supply.
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