Australia abolishes debt limit!

While the USA struggles trying to maintain debt with their continual need to increase the debt limit Australia has taken it one step further..

scrap the debt limit

www.theage.com.au...

The deal between the Abbott government and the Greens to abolish Australia's debt ceiling has been approved in the Senate.
Scrapping the debt ceiling is now a formality, with the legislation headed for the lower house where the Coalition has a majority.

When Tony was fighting Kevin for the election victory a key part of the fight was the amount of Debt Rudd has gotten us into..

As soon as Kevin was replaced, Tony went on trying to increase the debt limit from 300billion to 500billion to the jeers of parliament.

The Abbott government had originally wanted to raise the debt ceiling from $300 billion to $500 billion, but when Labor blocked the Coalition in the Senate, Treasurer Joe Hockey struck a deal with the Greens to get rid of the ceiling altogether. Many of Australia's leading economists argue this is good policy and that there is no practical need for an artificial limit on government borrowing.

During the debates on Monday leading up to the debt ceiling vote, Labor Senate leader Penny Wong attacked the Coalition for its hypocrisy in claiming a "budget emergency" before the election, only to abolish Australia's credit card limit when in office.

Senator Wong said it was clear the Coalition never believed there was a budget emergency given it was now abolishing the ceiling - the main obstacle to authorising more debt.

Well, now he went one step further and completely abolished the debt ceiling.

Just further into the debt quagmire we go!

reply to post by Agit8dChop


Wow, talk about hypocrisy. That's amazing (bad but amazing.)

I suppose you can look forward to a mini boom for a while before the chickens come home to roost like they have here.

this government, the abbott liberal national coalition is taking to australia with an axe.
they are poorly received globally, thier policy failures thus far are monumental and they have systematically repealed any changes or advancements put in place in successive years.

we are looking at the dismantlement of education (agreed to by all states), the changing if refugees to "illegal immigrants"
national broadband..
now debt!

the list goes on and on.

you almost couldn't make this stuff up, like they are trying to aggravate the entire country/region!

reply to post by Agit8dChop


Abbott is Murdock's man and you know where his connections lead don't you.

What is the point of having a debt limit anyway... any time it gets reached, they will simply increase the debt limit. It's an imaginary limit that didn't even exist in the first place, because it means nothing to them when they can just continue to increase it when ever they need to. This just saves them time and money because now they don't have to have meetings every time they need to increase the debt limit.

ChaoticOrder
What is the point of having a debt limit anyway... any time it gets reached, they will simply increase the debt limit. It's an imaginary limit that didn't even exist in the first place, because it means nothing to them when they can just continue to increase it when ever they need to. This just saves them time and money because now they don't have to have meetings every time they need to increase the debt limit.

Obviously debt ceilings are for manufacturing crises so that everyone can do a bunch of grandstanding and to give Fitch/Moody's/whoever a reason to lower the country's credit rating so that the wealthy can bilk some more money out of everyone else by way of interest on new debt?

They should just borrow borrow borrow and then tell the lenders to go ....them selves.

reply to post by theantediluvian

Obviously debt ceilings are for manufacturing crises so that everyone can do a bunch of grandstanding

Bingo.
2nd.

I'm not too concerned, the Coalition will bring us back to surplus, providing a major market crash doesn't happen of course.

GST may be increased to do so, but that's next year I think.

And we're well overdue. It's been a flat 10% for 14 years now.

AlphaHawk
I'm not too concerned, the Coalition will bring us back to surplus, providing a major market crash doesn't happen of course.

GST may be increased to do so, but that's next year I think.

And we're well overdue. It's been a flat 10% for 14 years now.

well said

Hooray just spend spend spend Aussies
The first pint or 12 is on you

lets tell the whole truth....when the labor government into power in 2007 the country was in SURPLUS.

They created the debt, they spent the money, they turned the country into the mess its in now.

I personally sleep better at night knowing liberal is in now.

VoidHawk
They should just borrow borrow borrow and then tell the lenders to go ....them selves.

Then the rest of the world hears about how we're "supporting terrorism" on their televisions which isn't good as they already took our guns...

The Coalition are far from anything that will bring back a surplus.
The first thing they did when they got into power was
Attempt to increase the debt limit from $300 to $500
The second thing they did was try to stop the carbon tax & mining tax
Now, they are trying to completely erase the debt limit
This is not the actions of someone wanting to bring us to surplus.
Tony's in bed with the Bankers as much as he is Murdoch's cronies.

Firstly; this would have occured not matter which faction is in power. Labour and Liberal are two wings of the same bird of prey.

Secondly; The Australian economy is going quite well compared most other counteries and it just would not do to have a country that does not need a NWO saviour when they are ready to spring the trap.

Thirdly; Australia has a debt Cieling?? BBBBB SSSSSSSSSSS. It has always been known as a nataional debtosit. Just another case of anything Americian is superior to the same thing Australian

Where is all this money going to go? Into corporate welfare of one sort or another I assume.

Raising the debt ceiling? brilliant thinking, because we all know that the quickest way to a surplus is to borrow more money.

Face it, the Libs got voted in by default, If Labour wasn't such a mess they'd still be in power. And now that the carbon and mining taxes are being scrapped the money has to come from somewhere, but from where? that's what concerns me.

I saw some research a few years ago which hinted (if strongly) hard limits do just the opposite of what they're traditionally thought to accomplish; they increase bad spending and/or bad habits. It turns out by removing hard limits we might possibly become more responsible because we're having to control our impulses without relying on hard controls to guide them. I can't recall all the details in the study, but it's obvious to me people around the world are not prepared for this news because it clashes with traditional wisdom. I've no doubt some nefarious elements will exploit this and spend spend spend, but the research hints this should be countered by those who're lawful. We shouldn't let the fear of abuse have priority over the evidence which has accumulated to support the removal of hard limits.

I support the removal of debt limits but that doesn't mean I support adding to the debt, although sometimes adding to the debt is necessary for effective growth. Bottom line, being responsible with our money is what's important, not the presence of a debt limit. Responsible decisions > debt limit.

Btw, this whole line of research reminds me of how in child psychology they recommend children have some time to be on their own. It's shown that constant supervision of children does NOT lead to happy productive young adults. In fact, overparenting is a common problem and this leads to children who're not ready for the real world. In fact, letting children experience some risk on their own builds up their self esteem WHILE also enabling them to be more prepared.

Debt ceiling raised, thats the tip of the iceberg...what lurks beneath!....

It a appears that Australia is being prepared for a Cyprus style haircut. Depositors will have their savings confiscated in the event of a systemic risk from Banks “too big to fail”

From the IMF website
www.imf.org...

All in the name of alleviating the problems faced by the administrators in the wake of the Lehmann Bros bankruptcy where depositors money was mixed and used to gamble…The IMF solution is...

You thought your deposits were covered by the Govts guarantee right…? Well you’re wrong.

barnabyisright.com...

“Australia’s so-called “guarantee” for deposits up to $250,000 only provides for up to $20 billion in Federal (borrowed) money per bank — less than 1/10th of the amount that each of the Big Four has in (electronic) obligations to bank account depositors (ie, “creditors”).

Or should I say, it ( the guarantee )“only promises to provide for up to $20 billion…”.

There is no money actually set aside to “guarantee” any depositors.
And “Under the new FSB-directed global regime agreed to by the G20 in 2010 — now being implemented by Australia, Canada, Europe, the UK and USA — just as in Cyprus, all “unsophisticated” bank depositors will get screwed overnight.”

The reason behind it?....
“Australian banks not only have ten times more in deposit obligations than the government has guaranteed promised to provide as insurance for each bank’s eligible deposits…..as of March 2013, the banks also have a new record $21.5 Trillion in Off-Balance Sheet “business” that is mostly derivatives; an increase of $2.5 Trillion in the March quarter alone, including a $2.2 Trillion increase in Interest Rate derivative contracts:”

Rudd delayed the 2013 election so he can attend the G20 summit

www.cecaust.com.au...
“Kevin Rudd delayed the election so he can attend the G20 summit in St Petersburg, to discuss the progress on implementing a global so-called “bail-in” regime, which the G20 is overseeing through the Bank for International Settlements (BIS) and its Financial Stability Board (FSB).”

Basel III was signed and the public were never made aware of how the game has changed.
Depositors will now rank lower than Bond holders and third party counter party derivate owners will be bailed out by depositors all in the name of relieving the taxpayer of bailing out banks
Was Rudd proposing the deposits tax to the big banks as a vote grabbing measure? as ultimately the cost to the banks will be passed on to depositors.

Are Australian banks at risk and have they been at risk in the recent past?

Westpac increasingly suffers unexplained glitches Aug 1, 2013
www.itnews.com.au...

May 5 2011
www.smh.com.au...
NAB and Westpacs secret bailouts revealed
www.moneymorning.com.au...

How the RBA borrowed billions from the US Fed on the banks behalf

So was Cyprus a “test run” to gauge and measure the resolve of ordinary people in demanding their money? They used spurious excuses like “it was Russian criminal money” to justify and set the haircut in process.
With the extent of the Australian Banks derivatives exposure they’ll no doubt find some few “laundering accounts” “ linked to criminality “ or perhaps plan a better excuse between now and when they (haircut) announce an Aussie bank holiday.

Failed banks will be restructed and depositors given equity in the new bank and be ranked lower than Bondholders

If you think deposits are safe think again...
Remember your politicians are complicit in this theft set up.
Stop this Labour/Liberal blame game and open your eyes as to how all sides of the political fence are complicit in enslaving all taxpayers and depositors.
Tell your friends, do the research, make up your own minds. Aussie banks are now no different than Cyprus Banks.

a reply to: ChaoticOrder

What is the point of having a debt limit anyway... any time it gets reached, they will simply increase the debt limit. It's an imaginary limit that didn't even exist in the first place, because it means nothing to them when they can just continue to increase it when ever they need to. This just saves them time and money because now they don't have to have meetings every time they need to increase the debt limit - See more at: www.abovetopsecret.com...

Exactly! here I am in June 2014 after budget & EOFY and it is now abundantly clear to me why Hockey did this they increased the very debt they are now blaming on the alp and the average Australian by their austerity budget.
The LNP behaviour is typical of the fiat currency fractional reserve lie that is neo liberal capitalism which is 0.01 % interest on debt for credit creation so phoney cycle goes..on and on.

You'd think America would be the perfect example for Australia on what not to do...

Hopefully you all won't fall into the same shape that we are.