Tag Archives: interest on debt

Survey: 87% Of Australians Would Sell Their Children

23 Oct

old-slavery

At the recent election, 87% of Australians aged 18 years or older voted for the Liberal – Nationals Party coalition, the Australian Labor Party, or the Greens.

Over the past four years, as the ALP / Greens alliance loaded up on national debt, and continued raising the debt ceiling ever higher, your humble blogger has continually pointed to the Interest-on-Debt bill …

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… and cautioned that the Australian Government Will Never Get Out Of Debt.

Yesterday, incoming treasurer Joe Hockey confirmed that I was right.

How so?

By announcing the Coalition’s intention to increase the government debt ceiling by 67%:

The Federal Government has announced a $200 billion increase to the Commonwealth debt ceiling and a six-month audit into government spending in the face of a “deteriorating” budget position.

Treasurer Joe Hockey announced the measures after a federal Cabinet meeting in Canberra on Tuesday.

“The Coalition Government will have to increase the debt limit for Commonwealth government securities to $500 billion,” he said.

“$500 billion”?

Have to”?

I don’t see a loaded gun being held to Hockey’s head … do you?

“We are increasing it to that level because I’ve been advised that on December 12, the current debt limit of $300 billion will be hit.”

He said the last Treasury assessment, provided in the pre-election fiscal outlook, predicted debt would peak at $370 billion.

However, recent trends show it will instead “exceed $400 billion”.

“And we’re not going to do a thing to stop it”, is what he failed to add.

Now we must all endure the risible circus show for the masses.

The Great Facade.

As one “side” of politics argues that they are only doing this due to (a) the other side’s failures, and (b) to avoid having to do it again and again and again — a la the USA recently.

While the other “side” of politics argues that this is (a) hypocritical, and (b) tantamount to asking for a blank cheque.

The antics of both “Left” and “Right” are all a distraction, of course.

The simple facts are these.

If you are one of the 87.58% who voted for the LNP Coalition, or the ALP / Greens, then you voted to sell yourself, your children, and all your fellow Australians’ children into slavery.

Even with usury rates worldwide at historical lows, the Interest-on-Debt bill ($14+ billion p.a.) is already far greater than all but three of the Howard Government era budget surpluses.

Those surpluses came amidst a huge mining boom. A massive sell-off of our national assets. And, an unprecedented, impossible-to-repeat increase in private debt (meaning, the government could run big surpluses, as a counterweight to “growth” in private debt-fuelled “GDP”, without causing a recession).

Those surpluses will never be seen again.

The mining boom has peaked.

There is little left to sell.

And private households are in debt up to the neck.

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Meaning … the Australian Government will never get out of debt.

We are completely enslaved.

Our new treasurer has just confirmed it.

You, your children, your grand children, will have to work ever harder, only to be gouged ever harder, by direct and indirect taxes, just so the government/s that you voted for can pay a portion of the annual usury bill to the bankers.

Each year, the portion that can not be paid, will be “rolled over”, and become new, ever greater debt obligations.

Each year, the politicians will add even more debt.

To pay for their lavish, minimum $195K p.a. incomes.

Their jet-setting lifestyles.

And their craven, immoral political “promises”.

I wonder how long it will be, before one of our triennial national elections surveys actually shows a fall in the number of Australians voting to sell their children.

The-New-Slavery-Banks

P.S. Yes, still on hiatus … simply rose up at 3-something a.m. to exorcise this topic from my mind.

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$5.2 Billion Budget Blowout

15 May

Let’s hear a caustic cheer for all the “experts” who insist that Australia’s public debt is “small”, and does not matter.

Interest on debt forecast, Budget 2012-13:

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Interest on debt forecast, Budget 2013-14:

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That’s a blowout of $699 million in 2012-13. $937 million in 2013-14. $1.594 billion in 2014-15. And $1.982 billion in 2015-16.

For a grand total blowout — just the blowout, not the total — of $5.2 billion “over the forward estimates.”

Now remember — all this is based on the forecast assumption of 5% per annum nominal GDP growth in the next two years. Even if that were to happen, the forecast is for another deficit (ie, more borrowing, at interest) of $18 billion in 2013-14, and $10.9 billion in 2014-15.

So, what do you think is going to happen to the forecast budget deficits — and the forecast interest on debt — if when that GDP forecast turns out to be highly optimistic … again?

Dear reader, I invite you to ponder, if you will, just how much productive investment could be made, if the economy were not loaded down with the ever-increasing burden of repaying a forecast $14 billion every year to (mostly foreign) bondholders, just for Interest on the Federal government’s debt?

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