Aidan Quote "it's probably only a matter of time before it's repealed."

How much are you willing to bet on that statement?

Quote "The government need not put aside even a cent to guarantee bank deposits! It owns the Reserve Bank, so has unlimited credit. There are no circumstances whatsoever in which it would be unable to pay the full amount."

If no other country accepts your currency at a reasonable conversion rate "unlimited credit" buys you NOTHING.

example Zimbabwe
On 1 August 2008, the Zimbabwe dollar was redenominated by removing 10 zeroes and ZWD 10 billion became 1 dollar after the redenomination. On 16 January 2009, Zimbabwe issued a ZWD100 trillion bill (100,000,000,000,000 ZWD). A roll of toilet paper in Zimbabwe costs $145,750, which is about 69 American cents.

Well my thoughts are not just a late comer on this issue, can we agree personal debt has nothing to do with the government? and can we say without much doubt if China catches a cold our country will get the flue? America post sub prime, took measures to start, seeing it could not take place again, then reversed them,world trade is under some level of threat, should it plunge much goes with it,housing, China has taken steps that result in our city housing prices dropping, by about 4 percent this year, in a tightening credit market that drop could become double figures, we, surely, understand some of those in difficulty paying off their credit cards are the same people exposed to any housing loan interest rate rise?we need to stop thinking it will be ok and if we can get our personal debt down

Philip S,
Considering the "probably" and the unlimited timeframe, any amount - though I doubt anyone would be willing to bet against me in those circumstances!

Australia only guarantees bank deposits that are in Australian dollars. Unlimited credit buys you as much of your own currency as you need, whether or not others are willing to accept it. But as the value of the Australian dollar is set by the market, others will always be willing to accept it.

Contrast this with Zimbabwe where the currency value was set by the government not the market. The government tried to hold the currency value way above the market value but didn't have the resources to keep doing so and it collapsed. The same thing has since happened in Venezuela.

Aiden Most things in Australia are sourced and produced in other countries, good luck trying to purchase those things in Australia with a currency that could be potentially worth less or worthless depending on how much monopoly money the Government produces.

I come from a historical direction.
And that is, the govt will not help the consumer.
It can own anything it wants, but as long as they are puppets to the Biderberg Group, Mr Turncoat will not hesitate to favour the banks when the crunch comes.
We will get some pathetic snake oil story that the banks will sell us some rubbish bonds and that should keep us or our money safe and secure.
If you believe a word of what these thieves tell us, you must have been asleep at the wheel for the last 100 years.
Remember, Glass-Steagall is an absolute 'must have', to stop the banks from stealing our money.
When the excrement hits the fan, and it will, we will be the losers.
Not those in debt.
The banks don't want debt, they want cash.
It will be just like the school bullies.
Whilst two bullies restrain you the third is rifling through your pockets for your lunch money.

We can't complain about our bank.

They provided us with so much help over the years.
First with the mortgage on our house, then more
recently with my mother's deceased estate. Things
went so smoothly and quickly and professionally.
Plus no bank charges. Maybe we've been lucky -
but I have to be honest. They have been (and are)
great people to do business with.