The Federal government budget has now been in deficit for 5 years straight.
Some analysts are predicting a further decade of budget deficits.
The Federal government presently owes $269.4 billion (77% of tax revenue) to creditors, over 70% of whom are “Non-resident” –
Source: Australian Office of Financial Management
The cost to taxpayers – the extra burden on the economy – of paying just the Interest on the debt accrued so far, is $12 – $13 billion every year –
Budget 2012-13, MYEFO, Appendix B, Note 10
It is almost universally agreed – the RBA included – that the Australian Dollar is significantly over-valued compared to the currencies of other key trading nations.
It is also near-universally agreed that this over-valuation of the AUD is damaging the Australian economy (ie, reducing business profits, and tax receipts).
QUESTION:
Why are you continuing to increase the debt and interest burden on taxpayers (and the economy) by selling government bonds that owe interest to the bond holder, when you could simply order the Australian Treasury to (electronically) print Australian Dollars, use those new dollars to pay down the existing debts to foreigners, and, weaken the foreign-exchange value of the too-high Aussie Dollar all at the same time?
FOLLOW-UP QUESTION:
Are you galactically stupid? …
… or, is it that you are all just bought and paid for, gutless, traitorous, overpaid, 100% self-interested puppets of the international bankster sector?
Barnaby Is Right 
Dear BI, Thank you for saying so clearly what I have been thinking for over 18 months.
Oh, and BTW, IF, (& that’s a HUGE IF) these traitorous, , bought and paid for shills for the banksters could actually balance a budget, let alone produce a small surplus, say just $3 Billion, and do it consecutively year after year,, it would only take about 90 YEARS to get out of debt.
You couldn’t be THIS bad by accident. And if it’s not accidental, then it’s DELIB ERATE!!
And if it’s deliberate, then that definitely qualifies as TREASON against the people.
Do they still get shot for treason??
I presume the suburb of Bruce in Canberra is named after this man who gave up his soul in service to mammon.
An excerpt from A SHORT HISTORY OF THE BANK OF ENGLAND by ERIC D.BUTLER.
http://www.bankwatch.info/
MR. BRUCE VISITS LONDON
Soon after the emasculation of the Commonwealth Bank, Mr. Bruce left for London, where he dined and wined with his financial friends.
I have no hesitation in saying that no man has betrayed his own nation more to International Financial interests than “Australia’s Noblest Son”; his record on behalf of the financiers since 1924 should be made familiar to every loyal Australian.
Upon his arrival in London he told a group of bankers at a dinner that the Commonwealth Bank had been transferred by his Government to the control of “a board of directors charged with the duties of central banking.”
The London Times reported him as follows: “The intention is that the Board shall control credit in Australia as the Bank of England regulates it in this country, and advice is now being sought from officials of the Bank of England as to the exact steps necessary to bring about a fully effective central banking system.”
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Politicians obey a foreign power and deceive their electors.
The Reserve Bank of Australia is privately owned and operates its business internationally, therefore it should be deemed to be a foreign power
Section 44 of the UK/AUSTRALIAN Constitution Act federating the various Australian colonies says that any person who –
“[i] Is under any acknowledgement of allegiance, obedience, or adherence to a foreign power, or is a subject or a citizen or entitled to the rights or privileges of a subject or a citizen of a foreign power: or
[iv] Holds any office of profit under the Crown, or any pension payable during the pleasure of the Crown out of any revenues of the Commonwealth: or
[v] Has any direct or indirect pecuniary interest in any agreement with the Public Service of the Commonwealth otherwise than as a member and in common with the other members of an incorporated company consisting of more than twenty-five persons:
shall be incapable of being chosen or of sitting as a senator or a member of the House of Representatives.”
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The Australian Royal Commission on Banking [July,1937] — conclusions:
Part of Clause 530 reads: The Federal Parliament ultimately is resposible for monetary policies and the Government of the day is the executive of the parliament.
Part of Clause 504:”Because of this power too,the Commonwealth Bank can increase the cash reserves of the Trading Banks. For example, it can buy securities or other property:it can lend to the governments or to others in a variety of ways; AND IT CAN EVEN MAKE MONEY AVAILABLE TO GOVERNMENTS OR TO OTHERS, FREE OF ANY CHARGE”.
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The International Banks Offices are in the Channel islands. It seems that they are exempted from Statute Law by the-
“Colonial Courts of Admiralty Act 1890”
“Exception of Channel Islands and Other Possessions –
The provisions of this Act with respect to Colonial Courts of Admiralty shall not apply to the Channel Islands. It shall be lawful for the Queen in Council by Order to declare, with respect to any British possession which has not a representative legislature, that the jurisdiction conferred by this Act on Colonial Courts of Admiralty shall not be vested in any court of such possession, or shall be vested only to the partial or limited extent specified in the Order.”
http://freespace.virgin.net/bank.help/Facts/documents/10912.html
Colonial Courts of Admiralty Act,1890
http://web.uct.ac.za/depts/shiplaw/legisltn/1890act.htm
It should come as no great surprise, especially in recent times, that there is corruption and fraud in the international banking system, that it is widespread and that the criminals concerned are beyond the legal system as they are protected by governments whilst they ply their trade. We are all pawns in this game and our political leaders are not and never have been free agents to act in the interests of the nation.
The question for Hockey is give us your SOLEMN PROMISE, whatever that means to a politician these days, that you will print dollars to help the nation just as the US, Europe and Japan have printed currency to repay their debt, thereby permitting their bankers to loan money to investors who then come to Australia to buy our assets.
Just last week the Australian Wheat Board has been sold to the US. Looking back most of our large profitable companies are now overseas owned, many by the US. Most high grade valuable mining companies companies are also foreign owned with many in the hands of US or Canadian investors. And now we are close to the bottom of the barrel with little to sell we are selling FREEHOLD AGRICULTURAL FARMLAND to state owned foreign investors. Not only is this not permitted on all other countries but the government refuses to keep a register so that the public can see to what extent this is occurring. This means that one day we’ll all wake up and even the dirt will not be ours. Add that NO TAX PAYABLE as the produce will NOT BE SOLD, just loaded into the cargo holds of foreign owned vessels and taken away.
So are we all stupid? Maybe so. And where is the business owned press which is charged with protecting the greater good? NOWHERE TO BE SEEN whilst at the same time it spends its time attacking the Labor government so that it can get back a business owned government which will again do its bidding and shovel money into its bank accounts.
We live in a perverse world and it ain’t getting any better.
Barnaby: please get some advertising out there and send your blogs to as many people as you can so that you get a critical mass and so that an apathetic public begins to see the world for what it is.
The overvalued Australian dollar has been the elephant in the room for quite some time. The dollar is largely to blame for falling tax reciepts, but are either major interested in treating the cause rather the symptoms? Do pigs fly? The US, Japan and the EU have all decided to distort the ‘free market’ through money printing and what do we do, sit back while the ship is slowly sinking.
EXACTLY!!
BI, Glad to see the note on the header about the owner of the site.
The mess we are in as well as the rest of the world was predicted quite accurately some years before the GFC happened. There were a number of oil field engineers and geologists that were warning of our current predicament but they are not economists so what would they know ?
Well it is a real world “I told you so !”.
You will find this video interesting;
I get the feeling that the US dollar has had its day.
Renminbi and Australian dollar start direct trading – Austrade
http://www.austrade.gov.au/…/3814/Data-Alert-130416-RMB-Trading.pdf.asp...
Apr 16, 2013 – On 9 April 2013, Australia and China announced an agreement to directly … step forward in advancing the burgeoning investment and trade relationship of the two … Australian dollars (AUD), rather than through the US dollar, …
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http://theconversation.com/the-boom-has-made-the-dollar-a-dazzler-but-australia-is-hardly-a-safe-haven-8047
Central banks everywhere – from Russia to the Czech Republic – are piling into Australian-dollar-denominated assets. This has limited the fall of the Australian dollar to around 3% from its peak even though commodity prices, which are strongly correlated with the Aussie dollar, have fallen globally by 10%. Even the German Bundesbank, the stodgiest of central banks, announced its intention to increase its reserve allocation of Aussie dollar assets. Is the Australian dollar, the fifth-most traded and among the most volatile of currencies, about to rival the US dollar, the yen, and the Swiss franc as one of the world’s major reserve currencies? And does this increased demand for assets created down under change the way the Reserve Bank and the Treasury conduct policy?
You seriously believe printing money with all its hyperinflationary tendencies is a better option than borrowing at historically low interests rates? I’ll have what you’re smoking.
Do you see even a hint of serious inflation … much less hyperinflation … in the USA, UK, or Japan, where they have been “printing” trillions in their own currencies? Australia is a pissant little economy by comparison. The scale of “printing” that would be needed to materially reduce our annual debt-and-interest repayments burden, while gently weakening the AUD fx rate, is hardly likely to pose any such concern.