From AAP, via nine.msn.com.au:
Debt costs outweigh WA future fund returns
A future fund designed to quarantine some of Western Australia’s mining royalties for future generations isn’t making enough cash to offset the state’s increased cost of borrowing, the premier says.
The fund was the centrepiece of the 2012/13 budget and is being established with more than $1 billion in seed capital over four years, mainly using money from the Royalties for Regions fund.
While it’s forecast to grow to $4.7 billion within 20 years, opposition treasury spokesman Ben Wyatt has cast doubt on whether it will even make a return.
Mr Wyatt says it is actually being funded by borrowings, which are used for investments, and then placed in a marginally interest-bearing account.
But the cost of debt had gone up with the state losing its AAA credit rating, so the fund was losing money, he said.
Liberal leader Colin Barnett conceded the fund wasn’t making enough to counter higher borrowing costs, but said the loans were for capital works projects.
“We pay a little bit more on what we borrow compared to what we receive from the future fund,” Mr Barnett told Fairfax radio.
The problem is not debt.
The Problem is Usury.
Humanity will never escape ongoing financial crises, or the din of “debate” about money and debt, until we turn the clock back 500 years, and ban usury in all forms once again.
Barnaby Is Right 
Usury is not the only problem….. creating money out of thin air and loaning it for interest is a crime against human endeavor as money is an accepted exchange medium…. nothing more!
To create money out of thin air and promote it to make money out of money is also another crime against mankind and human endeavor.
Money and usury are merely an exchange of human endeavor (energy) to others…. Gus
True, it’s not the only problem. But as I’ve argued often, fractional banking (ie, endogenous money) is merely a lever .. it allows bankers to lever-age their core profit model, which is Net Interest Income, or the “margin” between usury paid on deposits, and usury received on loans. Take away usury, and they have nothing to leverage.
Every State Govt should have its own bank. They could put their taxes in those accounts and create their own credit.The Bank of Colorado In the USA is the only Govt Bank and is performing well. We sold off all our State Govt Banks. I think the theory was to sell off banks and Govt could tax them for revenue. However how do you tax OS Central banks for creating our credit? They now have too much power and our Govts dare not question the economic logic that underpins their power over us.
Our Aust Post outlets would be an easy way to facilitate a new
National Govt Bank. The infrastructure already exists.
You’re onto it Ross 🙂
About 18 mths ago I had many exchanges on http://www.onlineopinion.com.au with Saul Eastlake concerning his various articles on our economy. He could not refute my arguments on debt and the fundamental flaws in our money creation system.
Eventually Saul had a hissy fit and demanded to know my full identity. Why is a name important in a debate about truth and justice? Saul no longer posts articles on OLO.
Not surprised Ross. Some time back (2011) he had a blue with me right here; took umbrage over my referring to him and a cohort of fellow economists who had signed a public(ity) letter calling for carbon pricing, as a “bankster’s glee club” –
https://barnabyisright.com/2011/07/02/the-pricing-carbon-choir-why-should-any-sane-person-trust-economists-after-the-gfc/
https://barnabyisright.com/2011/06/03/by-sauls-own-words-they-stand-condemned/
What I found fascinating at the time was the fact that someone such as he even discovered this little blog at all, much less felt the need to comment. Suggests to me the kind of person given to “vanity searches”, otherwise known as “egosurfing“.
http://www.israelshamir.net/shamirReaders/english/White–The-Usury-Paradigm.php
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The Classical Truth About Money
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“….The stand-out classical point about usury or interest-taking is Aristotle’s: “Usury is unnatural.” Aristotle understood that money is sterile. And he said that “Money exists not by nature but by law,” and, “The most hated sort (of wealth getting) and with the greatest reason, is usury, which makes a gain out of money itself and not from the natural object of it. For money was intended to be used in exchange but not to increase at interest (my emphasis). And this term interest (tokos), which means the birth of money from money, is applied to the breeding of money because the offspring resembles the parent. Wherefore of all modes of getting wealth, this is the most unnatural” (1258b Politics)…….” As portrayed in this excerpt from the “Merchant of Venice” – William Shakespeare –
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SHYLOCK I had forgot; three months; you told me so. Well then, your bond; and let me see; but hear you; Methought you said you neither lend nor borrow Upon advantage.
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ANTONIO I do never use it.
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SHYLOCK When Jacob grazed his uncle Laban’s sheep– This Jacob from our holy Abram was, As his wise mother wrought in his behalf, The third possessor; ay, he was the third–
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ANTONIO And what of him? did he take interest?
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SHYLOCK No, not take interest, not, as you would say, Directly interest: mark what Jacob did. When Laban and himself were compromised That all the eanlings which were streak’d and pied Should fall as Jacob’s hire, the ewes, being rank, In the end of autumn turned to the rams, And, when the work of generation was Between these woolly breeders in the act, The skilful shepherd peel’d me certain wands, And, in the doing of the deed of kind, He stuck them up before the fulsome ewes, Who then conceiving did in eaning time Fall parti-colour’d lambs, and those were Jacob’s. This was a way to thrive, and he was blest: 90 And thrift is blessing, if men steal it not.
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ANTONIO This was a venture, sir, that Jacob served for; A thing not in his power to bring to pass, But sway’d and fashion’d by the hand of heaven. Was this inserted to make interest good? Or is your gold and silver ewes and rams?
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SHYLOCK I cannot tell; I make it breed as fast: But note me, signior.
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ANTONIO Mark you this, Bassanio, The devil can cite Scripture for his purpose. An evil soul producing holy witness is like a villain with a smiling cheek, A goodly apple rotten at the heart: O, what a goodly outside falsehood hath!
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http://www.monetary.org/
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The authors at this website suggest that Americans should vote for politicians who will dismantle the privately owned interest charging banks and set-up government owned banks which do not charge interest – But in my opinion nothing will ever change until “Christian” America has rid itself of the Schofield Reference Bible and its promotion of “Christian Zionism”
“In On the Jewish Question, Marx wrote, “Money is the zealous one God of Israel, beside which no other God may stand. … The God of the Jews has become secularised and is now a worldly God. The bill of exchange is the Jew’s real God. His God is the illusory bill of exchange” (tr. Dagobert Runes as A World Without Jews).”
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http://mailstar.net/leftprot.html
When politician Jack Lang ‘took-on’ the Banks –
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In 1931 the Great Depression was upon Australia. Unemployment had reached over 450,000 in a population of 8 million. People were starving and soup kitchens had sprung up in most cities. Australia was at a crisis point when in New South Wales Jack Lang arose to proclaim a policy of Australia First.
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Capitalism’s crisis: Niemeyer’s Plan
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By 1931 it had become obvious that “capitalism” had – as a system – failed miserably. It either had to be modified or replaced. The Establishment responded to the slump with plans for “austerity”. In 1930 Sir Otto Niemeyer from the Bank of England visited Australia to “advise” governments to implement a” “deflationary” policy. Niemeyer contended that wages must be “depressed” (i.e. cut) to make our exports more competitive and to raise profits. According to Niemeyer (in a language we still hear nowadays) our living standards were “artificial in nature” and trade was the secret to “recovery”. Indeed, “international trade” was supposedly at the root of the Depression. Niemeyer advised savage cuts in all existing social services. But more significantly Niemeyer demanded that Australia not default on her international loan obligations to Britain. With pressure tactics and careful diplomacy Niemeyer sold his sorcery to Australian state and federal politicians. They called it the Melbourne Agreement of August 1930.
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The Lang plan
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In 1930 Jack Lang was returned overwhelmingly as premier of New South Wales. His first government (1925-1927) had introduced comprehensive systems of widow’s pensions, child endowment, and worker’s compensation; his second government pledged itself to maintain these hard-won games and steer the state out of the Depression.
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Immediately, Lang rejected the Niemeyer plan.
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At a stormy mass-meeting in the Sydney suburb of Paddington he declared:
“… The same people who conscripted our sons and laid them in Flanders’ fields… Now demand more blood, the interest on their lives…”
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The meeting ended in a mass clamour for the principle of Australian Nationalism – Australia First!
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Lang proclaimed his plan to fight the Depression:
reduction of interest on all government debts to Australians
suspension of all loan payments to all overseas creditors
the expansion of public works programmes
bank funding of government works through controlled credit expansion.
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The “Conservatives” immediately equated the Lang plan with communism, condemned his nationalism as “anti-British” and mobilised against him.
“Hitler and the Banks and the Abolition of Interest Servitude” by Ingrid Zundel
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http://www.veteranstoday.com/2011/09/13/hitler-and-the-banksters-the-abolition-of-interest-servitude/
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“Thinking Outside the Box: How Bankrupt Germany Solved its Infrastructure Problems”
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http://www.webofdebt.com/articles/bankrupt-germany.php