Coronavirus Australia: How economy will survive massive debt from pandemic

Also: We’re going to be running deficits for the previous financial year and the current financial year. They are big and they will add to the debt.Now, I made the bars in the graph above red. Red is a danger colour. But I do not want to alarm anyone. Deficits are good right now. Right now, government spending is the last defence against total calamity.

Net debt will rise because of those deficits. The Government will borrow money to finance its spending, and it does that by selling bonds, which it promises to repay later. The bonds are bought by foreign governments, big super funds and hedge funds, providing the government with cash.Net debt is rising from around 25 per cent of GDP to around 36 per cent. It’s not high by international standards – Japan has debt of more than 200 per cent of GDP.

Of course, Labor is cross at the government. The same government that gave it a hard time over debt and deficit is now building up debt via big deficits! The natural instinct will be for payback. They should instead take the opportunity to move our national debate onto something more useful, like making sure the government spends fairly. Why are universities excluded from Jobkeeper, for example, when they are such a big export earner?Interest rates are crazy low right now.

This is why the Treasurer talks about using economic growth to pay off the debt, not raising taxes to pay off the debt. Thelast year. So long as your interest rate on borrowing is less than your economic growth rate, debts shrink and deficits are not a problem.

This crisis is happening because the world has been reckless with debt since the GFC. So no, more of it is not good and it’s disturbing to think rates will never go up again. We kicked the can down the road before and we’re doing it again now. Hit the reset button ffs.

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Don’t you see it? Don’t you know the bigger plan? Look, here is a clue, the IMF have called next years meeting “The Great Reset” Every country goes down. It was already happening, this is the nail in the coffin. Soon the one world digital currency is created and accepted.

Surely a BioWeapon Reperation claim against China in the WorldTrade Court is totally on the cards ? ScottMorrisonMP realDonaldTrump BorisJohnson FinancialReview

Simple rule - when private sector can’t spend the public sector (government) should. When private sector increases spending again public sector spending slows. Adhere to this rule and the economy doesn’t collapse. Go for austerity and we’re trapped like this for a decade.

Edit: deficits are good when overseen by the Coalition. We know News Corp. We know. 🤦‍♂️

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Debt 'a very good' economic driver | Sky News AustraliaDebt is a tool which will help lead Australia out of the dire economic situation it finds itself in as a result of the coronavirus pandemic, according to InvestSMART’s Evan Lucas.\n\n“It is an operation to allow you to do certain things with money that can therefore be paid off over time,” Mr Evans told Sky News.\n\nOn Thursday, Treasurer Josh Frydenberg gave an economic update which forecast Australia’s gross debt to hit $851.9 billion. \n\n“Why it is being so questioned and why we are being so conditioned that it is a bad thing is the amount of repayments required and the time it takes to pay down debt,' he said. \n\n“Borrowing debt is a tool to get us through this, a tool to also create growth, and that needs to be put into perspective when we look at what happened with the economic update.\n\n“Debt is something that will help and get us through this and if used correctly it can be a very good economic driver.” It all just depends on whose it is, doesn't it? Lol. Tell this to my blood sucking and now screaming bank...
Source: SkyNewsAust - 🏆 7. / 78 Read more »