Joe Hockey. What a f-wit. His father was born in Bethlehem. No wonder our Joe thinks he is the son of God. Joe Hockey does not have a clue. Tell all your friends: our treasurer has no clothes. Joe Hockey listen to this. Australias foreign debt -- owed by the Government of Australia and state governments -- is rather small among developing economies. It is even half than the world average, But some small nations, developing nations and economic basket cases have very small national debts, even in relation to their GDPs and that is because nobody will lend to them due to the risk of default. Hence they look good in Joe Hockeys good book yet are incredibly impoverished because they cant get any development going and have to rely on corruption activity as the main engine of economy. A legitimate driver in some desperate circumstances. The Wiki CIA site is my source for the line-up below en.wikipedia.org/wiki/List_of_countries_by_public_debt It shows that Australias public debt is small compared to our advanced economy peers. Besides which, the most highly developed nations like Germany, US, UK and Japan all have huge debt-to-GDP ratios. That is how you do business in the 21st century. The point is, if you can pay it off you borrow like mad. To be able to pay it off you need people in employment and companies thriving so that they can all pay tax. You can only do that if you have lots of money washing through the place. Its the turnover, not money locked up in a box that matters. Money that is locked up is wasted. Furthermore, some alarming stats of public debt look worse than it appears because you have to ask to whom the debt is owed to. In Japan, with its 200%+ public debt, the bondholders are patriotic Japanese who have high levels of savings and they save by buying government securities. So it is not all apples and apples. However... Australian public debt as percentage of GDP is 29%. This is neither good nor bad, what matters is how productive the borrowed money is. For example, the average bank is leveraged up to 92% of its assets, some more, but banks borrow to lend out and keep the margin. Governments borrow to invest in infrastructure such as ports, railways and broadband internet so that the economy can grow. Now that the government has killed off the fibre optic network rollout, this will be to the detriment of the Australian economy even if it slightly improves the debt to GDP ratio, in a tiny way. I I work from home via my very fast broadband network with a connection of 100 megabits per second through a coaxial cable; in this way I can plug into databases from Melbourne to the Northern Territory. As a result, my employers can reduce their costs by using up less energy and real estate and use the savings to grow their business (which they have) to employ more people like me and get more profits with the money thus saved. As a consequence the government gets more money in taxes. If everyone was able to plug into a broadband net that could be 50 times faster than that which I already have, imagine the improvement in productivity and increased profits and employment that would generate. This would mean that people whom companies may not employ now could be employed and would pay tax rather than draw on unemployment benefits. This is the stupidity of people like Joe Hockey and the Abbott government. They are playing to an audience who equates government economy to their own penny-pinching idea gleaned from a depression-era mentality of their parents. But that is not how it works. Here are some facts and figure from the website i quoted above: Public debt among our peer nations: Australia: 29.3% Austria: 74.6% Belgium 99.6% Canada 84.1% China 31.7% Finland 53.5% France 89.9% Germany 81.7% Israel 74.4% Italy 126.1% Japan 214.3% South Korea 33.7% (North Korea, for comparison is 0.4%) New Zealand 41.8% Norway (among the worlds 5 most successful economies) 30.3% Singapore 111% Switzerland (among the worlds 5 most successful economies) 52% Sweden 38.6% Taiwan 36% United Arab Emirates 43% UK 90% USA 72.5% World average 64% The average for our peer nations is 75% I reckon if we were somewhere around 50-60% we would be in clover, the place would really take off and would grow another 10% annually with benefits for everyone, including, and especially private equity shareholders. Spread the word, Joe Hockey is a moron.
Posted on: Thu, 06 Feb 2014 01:42:45 +0000
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