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Australian debt ceiling

Discussion in 'Business, Investment and Economics' started by moXJO, Aug 4, 2011.

  1. moXJO

    moXJO menace to society

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    Thought this was interesting (saw it on another forum). Not sure if it has been discussed before
    http://www.bloomberg.com/news/2011-06-01/australia-must-raise-debt-ceiling-treasury-secretary-says-1-.html

    This was also raised

    I thought Labor was going to bring the budget back to surplus and start paying the debt back, so why the need to increase the ceiling?
     
  2. Aussiejeff

    Aussiejeff

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    Labor's latest pipedream, the High Speed Train, is likely to cost up to AU$108 Billion for a start.

    Then there's undoubtedly a whole crapload of as-yet-not-made-public Labor "futuredreams" that will cost us $Billions more.

    So yeah.

    They need some more "headroom" in the Ivory Tower to accomodate for all that extra pipedreram smoke....

    Like all pollies, they will make hay while the sun shines out of their a$$e$.

    :cool:
     
  3. Knobby22

    Knobby22 Mmmmmm 2nd breakfast

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    I don't understand.
    Our system works by passing a budget. Why would we want to create a debt ceiling?? Why are we using USA terms. We just call it a borrowing limit.

    Found this:

    Australia will require legislative change to increase debt ceiling
    According to Citi's economists:

    "The higher deficit projections until the Budget returns to surplus in FY13 imply an increase in the funding task of $A225bn in FY12. We do not expect this to materially impact interest rates, although the higher deficit forecast will require a change in legislation to raise the debt ceiling from the current $A200bn
     
  4. Aussiejeff

    Aussiejeff

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    Well, I think it would be fair to say the Federal government yearly "budget" is only a "guesstimate" nominal figure plucked from the Treasurer's a$$, liable to massive change at short notice ;)

    I suppose we are enamoured of the American system with their "debt ceiling", so of course we will have to have one of those too.

    I'll have french fries with mine.... :D
     
  5. MichaelThomas

    MichaelThomas

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    Because households are frantically trying to pay off debt because of high interest rates, is that why the government has to increase their spending and subsequently their debt ceiling?

    Surely lowering interest rates would help matters. It would help families, it would lower the Aussie dollar which would help tourism and education and exporters. Why are we keeping the rates so high and going into more debt when we're apparently one of the strong nations?
     
  6. Tysonboss1

    Tysonboss1

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    I thought interest rates were still quite low,:confused:
     
  7. Tysonboss1

    Tysonboss1

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    But these costs are offset by the as-yet-not-made-public labor "future Taxes" that will bring in $Billions more.
     
  8. Aussiejeff

    Aussiejeff

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    Sorry. I forgot about Wayne $wan's Perfectly Balanced Budget Books. The man's a pure geniar$e..
     
  9. finnsk

    finnsk

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  10. Tisme

    Tisme Apathetic at Best

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  11. Tisme

    Tisme Apathetic at Best

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    Now there is an election due around mid year, I'm wondering if Labor will be parading the current govt's excessive expenditure against record income and continuing debt or if they will do the usual lay down and get the blame routine while they concentrate on the plight of homosexual marriage instead?


    Of course similar could be said for Malcolm and his bleeding heart for his homosexual mates too, plus the pesky royal family.

    It would be nice to know what both parties stand for so I could feel a pang of emotion when I don't vote for either.
     
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