The budget

[White Indigene]

And wasn't it nice of the senile old fool to remind people of WorkChoices? The only policy the Fibs have!

Of course no Labor Boomers are guilty of stupidity, are they JM?!

[Jovial Monk]

What the fuck does that have to do with the price of eggs or that senile old fool?

[White Indigene]

What the fuck does that have to do with the price of eggs or that senile old fool?

Because the fools are in charge of Government, proven beyond doubt.

[Jovial Monk]

No, that changed 24/11/07. The fools are now in opposition & the biggest fool is in retirement

[Leftofcentresalterego]

A government that borrows in it's own currency will never default because, in extremis, it can always instruct it's central bank to print money to pay it's debts. But governments in the Eurozone cannot do this

Economics commentator, Anatole Kaletsky in today's The Australian

So Kaletsky admits that federal government that is sovereign in it's own currency can simply issue currency to cover it's debts and is in no danger of ever becoming insolvent. He does not ask the next logical question: if they can do this, why would they need to take on debt at all?

Actually, the description is somewhat misleading. The reserve is always issuing notes and coins to meet our circulation requirements but that is not the same thing as how a federal government spends. It spends by issuing fiat. This is not "in extremis", it happens every day. He is correct though, that the Eurozone countries foolishly gave up their currency sovereignty, diminishing their fiscal powers to a similar level to an Australian state government while at the same time, keeping all the burdens of national governments.

Don't fear the deficit. It is completely necessary.

[Trotsky]

Jeesus fucking christ

Its all fairys and daffodils with you commies as soon as you get your snouts in the trough. It not a deficit that is frightening, it is the amount with a couple of drunken sailors at the helm

[Robert Mugabe]

Don't fear the deficit. It is completely necessary.

That what I said. Can't you see how it has worked for my country and Argentina?

You Aussies could also be paying for your bread and milk with brand new AU$100000 bills! Think of how rich you will feel. My mate Kevin will then brag about how he turned so many Aussies into millionaires

[TomB]

Don't fear the deficit. It is completely necessary.

That what I said. Can't you see how it has worked for my country and Argentina?

You Aussies could also be paying for your bread and milk with brand new AU$100000 bills! Think of how rich you will feel. My mate Kevin will then brag about how he turned so many Aussies into millionaires

Well Mr Mugabe, you demonstrate your economic ignorance and show why your country is in such dire straits. Runaway inflation is due to the wanton printing of money without any valued supporting product and has nothing to do with a budget deficit.

[Jovial Monk]

I love it when the Sheeple from the Sheep Pen try to comment on economics. Such total ignorance, so proudly displayed

None have asked the question: Why, after all those boom years, all those years of cash surpluses are we having to borrow? And why has the question not been asked? Because the answer is that Howard & Tip spent all that money! The real drunken sailors are Howard & Costello!

[Jovial Monk]

From PB:

Talking about China:

CHINA'S economic recovery is "real" and could bring an Australian recovery within months - far sooner than the 2010-11 revival predicted in the federal budget, according to Reserve Bank Governor Glenn Stevens.

http://www.theage.com.au/national/recov ... ml?page=-1