This is a question we should all be asking, given that the side of politics that once pretended to be conservative rubbished the socialist side (Rudd) for wanting to increase our debt to $75 million, but who have now racked up debt multiple times that amount themselves.

Well, someone has asked, and the answer comes from Adam Creighton, economics editor on The Australian.

Sixty percent of Australia’s debt in held by foreign countries, with most of that portion held by Japan. Australian banks are also involved by law.

The rest of the debt? Well, according to Creighton, the borrowers - the government - don’t necessarily know. Apparently, a lot of foreign central banks and foreign bond holders do not like it known that they own debt, and they work through nominee companies such as JP Morgan and the like.

The more this “conservative” government digs itself into debt because of its own ineptness and panicked, economy-wrecking reaction to the China virus, the more scary our future gets. That they don’t know to whom they owe some of the money is downright terrifying.

Adam Creighton is far smarter than the numerous pollies, media and bureaucrats. From day one he called out the complete failure of the national cabinet. The debt will be owned by my grandkids. I think when rational finally kicks in some State Premiers could end up in prison. They have been a disgrace taking away people's basic liberities.

Yes, all we have left is a consumer society that relies on more and more debt to keep the economy going.

Recessions, which serve as a check on the error of our ways, are no longer allowed.

We are either headed for the biggest crash ever, or debt levels are going to be largely written off by agreement between the major powers, assuming that the stupidly low interest rates do not prevail forever

Kids sitting for their matriculation exams in a few weeks time will still be paying off the debt when they are you in their late 70s.

The process of money creation creates an equal amount of debt. This can happen in the private sector (which has limited capacity to take on debt) or the public sector (which has unlimited capacity).

Why are so many people under the delusion that their grandchildren would be under an obligation to eliminate the pubic sector's debt?

Given how slowly our national debt was being paid down even before the pandemic, it could be a century or more before ours has been brought down to manageable levels. A century if our descendants are lucky !! We're ruined !

Isn't hysteria fun ?

OTOH, if interest rates stay relatively low, and once our economic activity is back to 'normal', and with a reasonable annual inflation rate, even a debt of a trillion dollars may not be the monster we assume: after all, interest on that much may be minuscule for some time, and low for some time after that.

Meanwhile, with inflation, the debt (in today's dollars) declines anyway. So combining very low interest rates on our debt, 'normal' economic activity, and a standard inflation rate, that debt may not be so insurmountable. Give it a generation or so :)

Joe

I think Scott Morrison should let the country know the full extent of creditors that future generations will be required to slave for in the wake of the Morrison Recession.

I hope China isn't on the list because it has the old 'You belong China' attitude.

BTW Talking about the Chinese, what do you think of NSW pollies' cash-for-visa scheme to help Chinese become Aussies?

Makes you wish you were a NSW MP doesn't it. Get in on the action.

There is no problem with the national debt. Joshie Friedbrain and ScumO' Morrison took the parliamentary silverware down to 'Shonky John's Payday Loans' office and put the goodies on hock for a trillion dollars of quick cash @ 16,000% interest, compounding daily! Full repayment, plus interest, comes due this Friday. "No sweat", so said the dynamic duo, we've cut a deal with the Cosa Nostra, if we don't cough up the cash on Friday to Shonky John, our Italian friends will take over the loan and we can pay them back.

A message from the lads; "There is no problem, nothing to be alarmed about, but could anyone living in Tasmania, vacate to the mainland by the end of the month, lots of Italian migrants will be moving in down there shortly".

Paul1405,

I saw something on TV today that got me thinking about going into business as a cash-for-visa consultant for Chinese migrants affiliated with the Chinese Communist Party.

You don't by chance have any contacts in the NSW Parliament?

All confidential and they have to be honest and trustworthy members of the community ........... as usual.

Mr O, I've put something into GY that covers that very subject, hopefully it will get "approved". You never know your luck, you can get your teeth into that one.

Hi Mr O,

Something, much of the Aussie borrowing stems from Arab Muslim oil money, but I dare say the cash rich Chinese could be big bond holders as well.

Back in the 1930's depression Jack Lang (NSW Premier) refused to pay the Pommy bond holders their pound of flesh, wait for it, for debt incurred from borrowings by NSW to fight the Pommy War in Europe 1914/18. The Lang Plan, much like the economic strategy employed today, had its centre piece as spending on public works to stimulate employment and economic activity, feeding the starving, looking after the destitute, nonsense like that. The conservatives, the forerunner to todays Liberal party, branded Lang a Communist for such reckless behaviour, and the Pommy governor of NSW sacked the democratically elected Lang government.

Who Owns Australia’s Debt?
Don't know but I can guess who caused it, Australians !

Who Owns Australia’s Debt?

Your kids and your kids kids and then their kids too;
And each successive generation you'll never even know after your dead.

Tax, tax tax tax tax tax tax tax tax....

Forever to the power of a million times a million

Armchair Critic,

Spot on.

Australia is now headed down the road of a failed Third World country and it is future generations who pay the price for the Morrison Recession.

People like Morrison will say "I'm not the blame!" but when the historical and sociological studies come out I think they will show that cause and effect relationships put the blame on all the politicians, bureaucrats and business people who were climbing into bed with the Chinese long before the pandemic hit.

No. The kids do not own the debt. Our creditors own the debt; it is an asset to them. The kids will have to repay the debt, yes

The Whitlam policies are reaching fruition !