Posted on 04/20/2006 5:01:04 PM PDT by newfarm4000n
TREASURER Peter Costello has dubbed today "debt-free day" as the commonwealth bankcard finally comes into the black.
Mr Costello says Australia will be debt free as the Government finally wipes a debt of $96 billion it inherited when it came into office in 1996. The Treasurer said the Government had made $46.1 billion from asset sales since 1996, with all of those proceeds going towards retiring debt.
Mr Costello said this was having a direct benefit to taxpayers.
"With the retirement of all government net debt next year we are forecasting net interest payments of $300 million," he said.
"This means every year, year after year, the taxpayer is saving billions in debt servicing costs."
Despite being in the black, Mr Costello has warned against a spending spree.
"Let me disappoint some people and say that now is not the time to let our hair down and make whoopee," he said.
"If we lose focus and discipline we could easily go backwards."
Can we hire the Aussie conservatives? Or vote for them? Or something?
Here in the States, the Fed manages the money supply mainly by buying or selling bonds (of the national debt).
The Australian Government used to own the phone company, Telstra, but sold it off to private interests. That is where they got the money to pay off their debt.
But that is a good thing. The Government shouldn't be in the telephone business to begin with.
Good to see one conservative party still remembers what it means to be fiscally conservative.
Can we hire the Aussie conservatives? Or vote for them? Or something?
You sure can pray for the Australian troops in Iraq for starters!
Gladly. With all my heart.
I think its the same in Australia isn't it ? i know that they definately have long term government bonds. Perhaps some freeper knows more !
They did this with asset sales. We could sell yosemite park for 500 billion at least.
The US govt. probably has physical land assets worth many trillions.
The Australian Government used to own the phone company, Telstra, but sold it off to private interests. That is where they got the money to pay off their debt.
I think if you read the article closely the original debt was far more than what they got for selling telstra.
The difference between a drunken sailor and a Republican? The sailor spends his own money!
And then they foreclose, and liquidate us.
2005 interest on the U.S. debt: $352,350,252,507.90 (352 Billion if I have my decimal places right)
That would have bought a lot of nice toys!!
Good to see one conservative party still remembers what it means to be fiscally conservative.
I think it shows that Fiscal conservatism is not a vote loser if you have some backbone every time a special interest groups screams for funds 1
Not a dumb question. I am wondering the same thing.
I thought it was done by managing bank reserve requirements. I put a dollar in the bank, the bank loans out 90% to x, x puts 90 cents in a bank 2 and bank 2 loans out 81 cents to y, etc. This is how money is created. And by making 10% into 20% or 5% (or zero=infinite money creation), this is how the money supply expands or contracts.
Amen brother !
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