On 2 November 2011 your humble blogger showed that the Green-Labor government was on target to hit the debt ceiling by mid-2012.
4 months later, that approximation is looking good (well, very bad, actually … but you know what I mean):
That new, increased, $250,000 million dollar debt ceiling was only set last year. Slipped into the Budget papers by the government, hoping noone would notice.
As Treasurer Wayne Swan was congratulated by colleagues after Tuesday’s budget speech, Assistant Treasurer Bill Shorten introduced draft laws allowing the government to increase the amount it can borrow from $200 billion to $250 billion.
The proposed legislation would also remove a requirement that the Treasurer explain why the extra money is needed.
Great, isn’t it?
The government changed the law, so that it could rack up tens of billions more debt … for other people to pay back, for decades to come … and not even have to explain themselves.
What’s the bet that Wayne and Co will slip another provision into the May budget this year, to lift the debt ceiling again.
For the fourth time in five years.
After all, based on their current trajectory, they will run out of money by around June.
Time to ask Parliament for another extension on the next generation of taxpayers’ credit limit.