I don't have to tell you it's never been cheaper to borrow money than it is today. Low interest loans, no money down, no repayments for 12 months and a free toaster thrown in with the deal.It's no wonder Australian's are among the most indebted people on the planet.
According to a new report by The Reserve Bank Of Australia. Australian household debt is now over 180% of GDP. That is up roughly 75% from 1993.
Let's be clear on what this means. It would take Australia every dollar of economic output Australia produces, and every minute were engaged in paid work for 1.8 years before Australian households could dig themselves out from under this mountain of debt. Only to emerge flat broke. During this 20 month period we would not be able to spend a single dollar on anything else.
- No Food
- No Electricity
- No Interest Repayments / Sorry Banks ...
Does that give you a better idea of just how far up the proverbial creek we are, without a paddle between us. Australia is slowly sinking.
Of course it is not just us lowly citizens racking up the debt. Our esteem leaders in government have no problem spending more of your'e tax dollars than they collect. The Federal debt now exceeds 475 Billion dollars. The debt binge shows no sign of slowing down according to The Sydney Morning Herald. Total government debt is now rising by 5.3 million dollars an hour or 126 million dollars a day - according to calculations performed by David Lawson a commentator who runs the Australian debt clock website. I check the Australian debt clock periodically. It's fascinating and frightening to see how fast those numbers tick over.
So it is possible for Australia to be over 6 trillion dollars in the hole and digging deeper. It is hard to imagine that a tiny population of 25 million people in a country like Australia could carry so much debt.
The Australian government promotes borrow to build with Australian banks.
Go Ahead Make My Day.
What about if Australia was invaded by a foreign enemy tomorrow, quite possibly there could be problems with the Australian Military budget, because the country faces major financial problems.
The US maintains the largest defence budget in the world by a fair margin. It is unique in it's global superpower status, with a military that span's the globe, charged with deterring not only smaller regional powers such as Iran and North Korea, but also significant geopolitical competitors such as Russia and China. It's superpower status rests on the assumption that it has the capability to fight two major confrontations at once. But the uncertain and unfavourable US budgetary cuts since 2011 is seriously calling this situation into question.
Australia should be paying attention.
The current government has to take control of the Australian Financial Budget today.
Published by Julian Groom