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The Forum > Article Comments > The debts run-up by profligate governments are about to cost us dearly > Comments

The debts run-up by profligate governments are about to cost us dearly : Comments

By Brendan O'Reilly, published 18/3/2021

The orgy of government spending, however, is problematic because you cannot keep unprofitable businesses afloat indefinitely.

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"The Covid-induced recession"? We have to get over this 'it was the virus what done it, guv' stuff and lay the blame where it belongs: at the feet of the politicians who allowed themselves to be panicked by unworldly advisers. They are the real villains who have wrecked the economy and people's lives, all over something that has not affected most people. In Australia, we have been plunged into debt and chaos by a political party that used to be right of centre, but is now more interested in the Green lunacy of zero emissions than it is in what keeps life ticking over, it's biggest stupidity being the continuation of funding ratbag state premiers and their idiotic, erratic border closures. Yes. We know the federal government can't bring the state despots into line (although there are legal opinions that the states are acting unconstitutionally) because of our ridiculous federalism, but they don't have to keep funding them.

The behaviour of the political class and their cronies - all comfortably shielded from the mayhem they have inflicted on the population - makes it impossible for them to be trusted ever again.
Posted by ttbn, Thursday, 18 March 2021 8:06:54 AM
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How low must interest rates go before you think that taking on more debt is a more sensible strategy than paying it down?
Posted by Aidan, Thursday, 18 March 2021 8:58:43 AM
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Aidan

Of course borrowing to the eyeballs makes sense for individuals when interest rates are so low. The point is that current ultra-low interest rates make for poor public policy and are a recipe for inflation. They are generating an asset price boom that will eventually bust when rates go back to some normality.
Posted by Bren, Thursday, 18 March 2021 10:02:58 AM
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GOOD. IT'S THE PRICE YOU PAY FOR PUTTING FOOLS IN CHARGE.
Posted by Mr Opinion, Thursday, 18 March 2021 10:23:46 AM
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The orgy of government spending, however, is problematic because you cannot keep unprofitable businesses afloat indefinitely.
Brendan O'Reilly,
Orgy is a totally inappropriate description, ill-considered via ignorant, self-serving experts yes !
Why, even your expertise falls into that category, 'a retired commonwealth public servant with a background in economics and accounting'.
What would you have this Govt do with people whose income has simply vanished because of "economic experts" ?
Would you support a Gap Year of National Service for unemployed 18-21 year olds ? Why ? Because that group is the very one that'll stand there in 40 years time still twiddling their thumbs at huge expense to all because of the "economic & social experts" who stipulate that we can't expect the snow flakes to put in some effort ? Or, we can't expect unemployable people to become active in the work force because they have a degree ?
Do you realise that society is where it is now because of all those "experts" !
Posted by individual, Thursday, 18 March 2021 11:13:57 AM
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Brendon laments the condition of the middle class.

Brendon needs to get among the masses and observe which class of society really suffers.

No Government in the future, will have the necessary motivation to raise interest rates, a move which will bring the ponzi housing bubble back in line.

Is that the anxiety at the root of his article? Outside of the housed and happy middle classes, ticks a time bomb; true. But itís not a worry which includes government policy, which always favours the wealthy middle class.

Stagnating wages propped up by immigration, is losing its appeal to lower wages and consequently inflation. That one stands in stark contrast to inflation causing house prices, engineered by market manipulation of interest rates, with an accompanying look of glee on faces of property investors.

Mortgage stress is now at around 45%, those in rent stress higher, last I checked the figures recently. which of course means, half the country are doing well.

There you are Brendon, stop worrying. Things are bad but they could be worse.

Dan
Posted by diver dan, Thursday, 18 March 2021 6:59:24 PM
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