This is not the first time Australia had run a debt, or used these economic fundamentals, I don't believe we have sold out our souls, but thats is
just IMHO. Previously we had Govt. that ran debts, debts much larger than this one and with the IMF(who signed Bretton Woods 1944, Australia was there
too) under the advice of one of its Founders. So, don't worry dude, you have been bought long ago and accepted the Keynesian General Theory in the
Mid 30's. Australia has often done very well by this. Until now that is. I think that is how you could percieve it.
I agree with you that these are dangerous times to be generating such a debt. If you look at Greece, we can see the dangers, 90% of GDP gone to
servicing a debt, leading to a selling of one particularly important state owned asset(ferry ports in Greece, google riots and Thessaloniki Ports)
that led to massive rioting and violence, but locally our banks are in great shape, this is not true for most of EU(Greeces national bank needed to be
bailed out), Britian and the USA.
What is more dangerous though, and why I think this debt may be bad news, is that the globe is facing a severe recession/depression and not only will
our Govt. be indebt, but as individuals our levels of debt are extremely high already, with little savings in reserve. Our debt to income is twice as
large as that in the depression era. This is not the Govts. fault, or the IMF's. The NWO did not make individual people borrow massively or encourage
them not to save. But the Govt. solution will not solve this problem.
Our Govt. faces a problem, it seems to follow the John Maynard Keyne's(co-founder of the IMF) philosophy, since Prime Minister William Morris
Hughes in the 30's that sees the govt. inject funds into the system via projects etc. That this will creates jobs, aids buisnesses etc. The money is
filtered into the system thus increasing spending, which creates more buissneses and thus more jobs etc. etc. while still a small portion of that
money is saved by the general population. That is the fundamentals that saw them practice debt after the economic catastrophies of the
Depression(where we were in massive debt as one of the biggest Govt. borrowers when commodities crashed which we rellied upon as staple
exports....sound familiar to todays minning exports!!!!!), WW1 and 2, but now we have high debt, no savings and, the biggy, a massive reduction in
industry and production due to transnational globalisation moving these offshore due to cheaper labour costs elsewhere. It was a fact that in other
harsh economic times western countries rellied on these industries, the savings of its citizens, and their lack of debt to dig them out. We do not
have these now. This is why I believe the Govt. is injecting cash directly as bonuses, a well as trying to create projects.
In 1931 our currency bombed, we cut wages by 10%(try doing that now), we printed 18million Pounds, 12 of which was put into public works and to aid
the unemployed and 6 million to our wheat industry.
Surprisingly our Federal Labour Treasurer EG Theodore (labour....hmm they just love a good debt.)
"the international bankers of the world are largely responsible for what has
happened to the monetary policy of the world in the last two years ... They were
the originating cause of the depression and the economic disaster that has
overtaken the world’.
. (I got this from a RBA research paper on Keynes and Australia that was done in 1985 but not released until 2000).
Theodore went on to quote Keynes in his writings of The Economic Consequences of Mr Churchill[
The Bank of England has manoeuvred its assets and liabilities in such a way
as to reduce the amount of cash available to the clearing banks as a basis for
credit. This last is the essential instrument of credit restriction. ... Credit
restriction is an incredibly powerful instrument ... especially in
circumstances where the opposite course is called for. The policy of
deliberately intensifying unemployment with a view to forcing wage
reductions is already partly in force.
Wow, this sounds really familliar. Why is that. No credit, people losing jobs. So we have been here
before, borrowed and recovered, while still holding on to our country, the resources etc. So there is No troops, no UN. I think you may be exagerating
a little bit.
Just compare our debts to that of the EU, UK, USA. Haven't seen any invasions there yet?
Our government believes it understands the ramifications of the lack of credit in the private sector and believes that by injecting itself into the
system it will help. But given that we already have seen our export commodities dive our dollar deflate, our personal debt reach record levels while
our lack of savings is also high, coupled with little or no major export industry and production, I think this money will only be a slight salve, its
like those poor people in Victoria, trying to fight a raging inferno with a garden hose. And sadly, like those horrors, We've seen and been here
before. As Australians, we'll survive. I know we will. If you can keep your head when all about you are losing theirs.........
I applaud you stance.
But Keep the money.
Buy products from local producers.
Buy Locally grown foods.
Buy some gold.
Use it to Get rid of or reduce any personal debt(credit cards, loans, personal finance-AGC, GE, Myers etc).
Use it to start a garden of your own. Grow some vege.
Use it to start an emergency food store( if you think things will become that bad).
Buy a gun. LOL.
Just Don't give it back to them. Use it to help your community, in your community, locally.
Keep your head up bro.