I do think Julie Bishop and Libs need to go much furher when they say

'That is why the Coalition is committed to paying off Labor's debt so that the young people of today will not face tomorrow higher taxes, reduced services and lower standards of living'.

This is now much easier said than done, although i am not defending Labor.

Looking back thru the posts we seem to accept manufactured funds that can be exploited at will ?

Aw shucks. She stopped, just when it was getting interesting.

"That is why the Coalition is committed to paying off Labor's debt so that the young people of today will not face tomorrow higher taxes, reduced services and lower standards of living."

Left hanging, as it were, on our fiscal cliff of mystery...

So please, Ms Bishop, send Graham the missing piece, that explains how the Coalition will achieve this.

The two options are exactly the same as for every other country, including the United States. You can a) increase taxation or b) reduce government services. Which is it to be?

Or perhaps there's another way that we haven't thought of yet, the Bishop solution...

What's that Skippy? Tony's in trouble? Quick, let's get help...

Cheryl, you just cannot ignore these other debts.
They are real money and have to be repaid and interest is due on them.
They are government debt, even if some are reflected back to the Reserve Bank.

They will not go away, they are real and someone will come knocking.

David G
I think we are getting a very balanced debate..no suspect propaganda. Just the sad facts re Labor's inability to properly repay our balooning debt, likely 10-15Bn 2013 Budget deficit( leading Australian institutional economists) which excludes previously mentioned off balance sheet debts eg unfunded superannuation liabilities etc and Labor's economic mismanagement and inability to manage within Australia's means. Can't hide from reality and the sad facts.

The Howard government paid off the previous Government debt-big deal!
As I recall the Sydney Harbour Bridge took 75 years to pay off without any affect on NSW budgets.

What Bishop does not mention is that, apart from this debt and the Future Fund, the previous government did very little. No infrastructure,reduced University education and health funds not to mention the obscene handouts to the greedy beginning the era of entitlement still around today.

Howard had the benefit of the huge boom/bonanza taxes of the mining boom added to his 'never' GST.

You forgot to add that the Future Fund is also there to pay the pensions of overpaid politicians!