Sanity Reigns ..... Down Under

[Texas_tea]

Abbott Claim Australia's deficit is too large. If is only a fraction of the Deficit in USA and most European countries. One Minister said "sure we're currently at a very low level relative to the rest of the developed world but e don't want to find ourselves where the rest of the world is "'We did not have a recession and have a triple A credit rating. Labour plans to block $2.6 Billion in budget savings

I wonder how that really makes you feel as a global alarmist, Aus, when your own country sees the light in this bogus insanity?

Can't blame fat cat Americans and demand more of our money .... now you will have to look within!

 

[Texas_tea]

I wish America could gain some of that sanity from down under!

Chamber Study Predicts Obama Climate Rule Will Kill Jobs

The nation’s biggest business lobby says President Barack Obama’s plan to tackle climate change could cost the U.S. economy $50 billion a year.

 

[Aus22]

Texas , I am not sure what you are saying. It is trur one party in Australia wants to reduce the deficit by cutting spending and increasing taxes. But the other party is oppose to these drastic methods. We do need to cut the deficit but not to this extent.
I can not comment on the American position.

 

[GBFan]

Texas , I am not sure what you are saying. It is trur one party in Australia wants to reduce the deficit by cutting spending and increasing taxes. But the other party is oppose to these drastic methods. We do need to cut the deficit but not to this extent.
I can not comment on the American position.

"But the other party is oppose[d] to these drastic methods."

I noticed that your national debt is 3.26 times your GDP, whereas the US national debt is 1.08 times its GDP. That would indicate that your national debt is significantly out of control.

Another issue noted was the fact that in the US, personal debt is approximately equal to our annual GDP, whereas in Australia, the personal debt is about twice the annual GDP.

We are able to hide behind the Federal Reserve, which just prints more and more money and keeps the interest rates artificially low. Once they quit that, our personal debt AND our national debt will become absolutely unsustainable.

Apparently, Australia is in even worse condition than we are. What methods are you proposing to bring down the debt (and, thus, avoiding cutting spending and increasing taxes)? If I do my math correctly, Australia will have to cut its spending by 43.6% just to stabilize its debt, much less pay it back.

We would be interested in any new approach to handling this, since we're looking down the very same cliff.

 

[Aus22]

Australia deficit is 42,999 or 8.6 $ compare the USA deficit of $626,ooo or 21.62 % . Many developed countries have higher deficit than Australia including Japan France, Uk Spain,Norway Australian current account to GDP is -2.9 it has been as high as 4.9 in the past.

However we do want to reduce the deficit. No all the savings in the budget will be block. All parties will support a tax on higher income earners of $180,000. A excise of gasoline will be passed s it is supported by the Greens ,

The Labor leader said he will oppose the doctor levy, a new formula for pension increase that will produce a lower rise in pensions, He will also oppose unemployment benefits be taken of people under 30 and allowing universities to charge their own fees. Most are areas of the budget will be passed
We do not print money.

 

[Texas_tea]

Texas , I am not sure what you are saying. It is trur one party in Australia wants to reduce the deficit by cutting spending and increasing taxes. But the other party is oppose to these drastic methods. We do need to cut the deficit but not to this extent.
I can not comment on the American position.

No need to comment on what America's doing. It's pretty simple. It's the same thing that has happened to the rest of the socialist/Marxist countries.

 

[GBFan]

Australia deficit is 42,999 or 8.6 $ compare the USA deficit of $626,ooo or 21.62 % . Many developed countries have higher deficit than Australia including Japan France, Uk Spain,Norway Australian current account to GDP is -2.9 it has been as high as 4.9 in the past.

However we do want to reduce the deficit. No all the savings in the budget will be block. All parties will support a tax on higher income earners of $180,000. A excise of gasoline will be passed s it is supported by the Greens ,

The Labor leader said he will oppose the doctor levy, a new formula for pension increase that will produce a lower rise in pensions, He will also oppose unemployment benefits be taken of people under 30 and allowing universities to charge their own fees. Most are areas of the budget will be passed
We do not print money.

http://www.australiandebtclock.com.au/ says your total debt is $1.4 trillion, and your government debt is $682 billion.

http://www.tradingeconomics.com/australia/gdp says your GDP is $1.5 trillion ....

thus, your total debt is approximately equal to your GDP, while your government debt is about 50% of your GDP. Neither instances are sustainable.

When I looked at your proposal to increase taxes on those making $180,000 or greater, it's obvious that your politicians are as good at telling tales as ours ... according to the first government report at http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/6523.02011-12, you can take ALL the income (100% tax rate) from those over $180K, and you will not stop the negative cash flow. Your national debt will continue to increase. (We get the same story ... our hated top 1%). In fact, if I did the math right, the increased tax (even at 100%) will have little to no impact on your debt/deficit structure.

How much do you think the riot police are going to cost if you deny unemployment benefits to people under 30? I find it hard to believe that is politically viable, especially when I note that over 35% of your population is under age 30 - http://www.indexmundi.com/australia/age_structure.html -

If you can figure out how to keep the riots to a minimum, please let us know.

As for the changes in doctor levy and lower pension structures, do these REALLY have a political chance of being enacted? I would be surprised ...

 

[Aus22]

GBFin , Your Figures are based on a private web site set up to attack the last Labor Government, The Debt Clock. Its figures on debt and GDP seems exaggerated compare to other sites. It might include private debt which has nothing to do with the government. Even to Present Liberal government said Australia debt was low. Exports are rising although the mining boom may be over.

The GDP figure used by this government is $1520,6o not 1.5 trillion. Since the Liberal go to power it no longer exaggerates the figures Total government defbt in budget is $42,999 not $682 Billion.

I agree cutting unemployment benefits will cause riots. The proposal to start in certain areas in July, is that those not working or learning will get no payments. . Of course many will not be able to get either so will have to wait six months to get paid.
Riots have already started with University students objecting to the increase in fees even although they will not have to pay them until they get a job earning over $50,000 when they graduate.

I agree the changes in medical payments have no hope of being passed by the senate as we are used to free doctors visit. The change in pensioners payments is due to a new criteria and is on future increase. It will be oppose by labour as is the future proposal to only give the pension at 70 in 2035. This pension is separated to Super which is just coming in Australia

 

[Aus22]

My figures in in Millions.

 

[GBFan]

Back to the GDP --- the $1.5 trillion figure actually comes from the World Bank, and is validated by the Australian government at http://www.abs.gov.au/ausstats/abs@.nsf/mf/1345.0.

I suspect that "The GDP figure used by this government is $1520,6o not 1.5 trillion" is measured in billions, which would make it equal to the figure I presented.

The World Fact Book, published by the CIA, states that your national debt is approximately 32% of your GDP (at the end of 2012). That would be in the neighborhood of $500 billion ... and, given the continuing growth of your debt load, $680 billion certainly seems more likely than $42,900 (multiplied by what factor, I can't figure out --- millions, billions, nickels?).

More to the point .... since you recognize that the government proposals are untenable, what do you think your government is going to do? Are they going to fix it by some other method, or are they going to tax and slash their way to parity?

Believe me .... we're looking for answers.

 

[dogtowner]

If the debt clock is exagerated one way is itnit also possible that other sites are exagerrated the other way ?
It did appear earlier on that gb was citing total debt while aus was citing deficit. Apples and.oranges there.

 

[Aus22]

If we are going to argue about Figures we will not get far. My figures are in Millions, yours in Billions. The important point is when the same site compare the figures such as in Wikipedia , the USA deficit is listed as -626,000 millions and Australia is -42,999 millions. The years vary, the USA figure is est 2014 whereas Australia is estimated 2012. The growth of debt is also an estimate. It is rising in both countries. That why we are trying to reduce it.

Most of the budget savings will get through but some taxes and charges will be defeated in the Senate.. Despite this the Federal Liberal government will survive for rest of the three year term. State Liberal governments which are going to elections soon may not survive. In my state The Liberal which at present had a one seat majoriety will be defeated in October, behind g Labor 46 -54. I do not think the Liberal Federal government will take the risk of replacing the defeated charges and taxes with more charges and taxes.
The graph on the Reserve Bank of Australia site does show Australia GDP is up and down but rising slightly.

 

[Texas_tea]

Tony Abbott seeks alliance to thwart President Obama on climate change policy

Tony Abbott is seeking a conservative alliance among "like-minded" countries, aiming to dismantle global moves to introduce carbon pricing, and undermine a push by US President Barack Obama to push the case for action through forums such as the G20.

Visiting Ottawa for a full day of talks with the conservative Canadian Prime Minister and close friend Stephen Harper, Mr Abbott flagged intentions to build a new centre-right alliance led by Canada, Britain and Australia along with India and New Zealand.

 

[dogtowner]

Its nice to see but BO has pockets to line with silver so he wont care.

 

[TheJPRD]

Its nice to see but BO has pockets to line with silver so he wont care.

Barack will be history in a couple years. Unfortunately, it's the entire Democrat party that enables this left wing insanity, not just this President. Every Democrat voter, every entity of the mainstream media, every leftist judge, and the majority of the Teacher's union is a threat to our nation! The left owns politics, the propaganda media, the courts, and the schools. The kid gloves of the Conservative right must come off!!!