The delayed effect of the gross criminal negligence of public duty of the Krudd/Gillard/Krudd Socialist abortion is now catching up and placing Australia at risk of financial problems.

Just imagine how much worse this would have gotten if Shorty had got in and borrowed ceaselessly to fund his ruddiculous Socialist promises.



CHART: The incredible rise in Australia's debt-to-GDP ratio
Business Insider Australia David Scutt 30/06/2016

Australia is accumulating a lot of debt, so much so that the nation's debt-to-GDP ratio hit a fresh high in the first quarter of the year.
According to analysis from UBS' Australian economics team, comprising of George Tharenou, Scott Haslem and Jim Xu, debt-to-GDP hit 254% in Q1, taking the increase in the ratio since 2010 to 50%.

The figure excludes financial sector debt, and presented in nominal terms.

The chart below, supplied by UBS, tells the story. The gradient in recent years is so steep that it'd put an uncategorized climb in the Tour de France to shame.


© Provided by Business Insider Inc

It's a big figure, and one that looks set to increase even further in the quarter about to end, says UBS.

"Despite some moderation of credit growth, based on recent trends, debt-GDP is still likely to rise further in Q2 to 256%," it notes. "There are sharp rises across each of public (47% of GDP), household (125%), and business (84%).

While the rapid increase in indebtedness has more than a few people concerned, Tharenou, Haslem, and Xu believe that it will not prevent the RBA from cutting interest rates again, noting that the bank has other priorities at present.

"While credit/debt growth is slowing, it remains relatively fast compared to ongoing weak nominal GDP growth," they say.

"Notably, household wealth (i.e. assets less debt) actually fell in Q1, which is consistent with a fading of the wealth effect.

"This latter impact, combined with the RBA focus on low inflation/wages, as well as a weaker global growth outlook, means that we still expect the RBA to cut rates by 25bp in August."

http://www.msn.com/en-au/money/markets/chart-the-incredible-rise-in-australias-d...

The IMF became interested and issued a warning about the AAA credit rating.

Maybe it wouldn't fit on the chart ?

Swagman wrote on Jul 12^th, 2016 at 11:50am:


... and the ALP blocked any legislation that would fix Labor's mess because if they didn't, it would make them look very, very bad.

juliar wrote on Jul 12^th, 2016 at 11:44am:


Good point, JuLiar, but it was the ratings agencies.

Now why would they do that?

*** Today on KRUD Prime Time Chat and Waffle.......... The One Trick Pony has released the sequel to his long-running worst seller -   "Labor Ran Up The Debt"........ the sequel is titled "Labor Ran Up The Debt" and covers the amazing reveletion that nothing new can be added to this purported discussion......  international acclaim has come in for this amazing and revelatory sequel from The Thatcher Times and The Washington Reaganismer........ join our panel at midday for a full discussion and some amazing disclosure about "Labor Ran Up The Debt"..... you'll be truly astounded at what you hear.....

Sprintcyclist wrote on Jul 12^th, 2016 at 12:53pm:




then you'd be wrong.

Karnal wrote on Jul 12^th, 2016 at 12:37pm:


Yes, there was locked-in spending for under-funded ALP policies that Abbott could do nothing about. NDIS is one such policy, as is Gonski.

John Smith wrote on Jul 12^th, 2016 at 1:44pm: