Psyber wrote:If we could pay the 11% of GDP debt we would not be borrowing more to fund the interest, nor looking for cuts to reduce the debt?
Do you really believe the Liberals are deliberately running with a high risk of losing the next election for no reason by doing unpopular things now without there being genuine concern? (The issue of whether they are making the right choices to save expenditure is another matter.)
The cynical and politically safe thing to do would be to buy votes with generosity and let the next generations worry about paying for it.
Can you offer links to prove the present debt is a viable level of debt in our present circumstances with falling productivity, falling commodity prices and falling AU$? Most "expert" articles favouring our present debt that I have read seem to be opinion pieces rather than applied accountancy - to be valid they would need to demonstrate how the debt can be repaid in reasonable time rather than become the inheritance of the next several generations.
The Bonds - I said I wouldn't take the risk - others will. I agree Bonds did well before the reversal of productivity and commodity prices. The real test of good judgement is working out when to get out of any one type of investment before it falls over rather than believing that because something has done well in the past it will go on doing so forever.
Taking an extreme example, who would now buy Bonds guaranteed by the Greek government?
In the end I accept we won't agree because our positions are matters of financial philosophy and faith. However, I felt there was a need to point out that your equating an unsecured debt with the secured, by acquired assets, debt that a property mortgage requires was not valid.
Hooray. I cannot believe supposedly sane people say an uncontrolled debt is nothing to worry about.
Ever thought, at some stage, Greece, or whoever, were in exactly our position and said debt isn't something to worry about?
Anyone else live through the GFC?
Just because my neighbour has an uncontrolled debt, doesn't mean its OK for me
Typical socialists: Margaret Thatcher was so right