Australia close to defaulting on debts: Joyce

[Madnsassy]

Opposition finance spokesman Barnaby Joyce is courting controversy again, warning that Australia is getting to the point where it will not be able to repay its overseas debt.

Senator Joyce says the Federal Government is borrowing billions of dollars from overseas to fund stimulus spending and programs like the National Broadband Network.

And he has questioned whether the Government is in a position to repay those loans.

"We're going into hock to our eyeballs to people overseas," he said.

"You've got to ask the question: how far into debt do you want to go? We are getting to a point where we can't repay it.

http://abc.com.au/news/stories/2010/02/09/2814351.htm

[paland]

Just like the good ole USA

[Kiwi in Oz]

And the NBN in my view is a waste of bloody money in the first place. It's a dangerous game spending up big on communications when the technology becomes out of date even before it leaves the factory. The future is wireless

[Dwight]

Yes, the fact that Australia's debt is "overseas" is a shocker since it is an island.....

Correct me if I'm wrong but isn't Australia's debt actually rather low compared to other developed nations?  Is this guy just pandering to the media?

[yellowrocker]

Australian debt on a per capita and per GDP basis is very close to that of the US. WikiLink

On Wiki page, also note the following as a % of GDP (of course Wiki could be wrong):

US - 95%
Australia - 107%

Germany - 159%
France - 211%
UK - 365%
Ireland - 960%
Iceland - 998%

Japan - 35%

This cannot end well!! Especially for Europe.

[damoil]

rubbish, australia was in surplus last year.
we have only just gone into debt, and we have tunnels that cost more than the current debt.

we have huge coal exports, heaps of raw material, surplus food exports, tourism.
we might have a small population, but we really lucky on our exports.

on a skim of the article these no proof we are 'close' and is more joyce playing with words.
joyce is an idiot, and i think this is a media beat up.

[roccman]

Australia should focus on water - fresh - drinkable - water.

[♥RÉĎRËÅMÊŖ♥]

oh please who is going to listen to an idiot like  Barnaby Barnyard about Australian debt...... he is the Sarah Palin rogue shoot from the hip politician that thinks if you throw enough shit some of it will stick and a neo-con to boot.

I am not suggesting debt is good.... but this is political spin of the most irresponsible kind. He can't even separate household debt from government debt.

Agree's with roccman......water is the most important issue.

Barnaby is an idiot.

http://abc.com.au/news/stories/2010/02/09/2814857.htm

[RMG]

Australian debt on a per capita and per GDP basis is very close to that of the US. WikiLink

On Wiki page, also note the following as a % of GDP (of course Wiki could be wrong):

US - 95%
Australia - 107%

Germany - 159%
France - 211%
UK - 365%
Ireland - 960%
Iceland - 998%

Japan - 35%

This cannot end well!! Especially for Europe.

Actually these numbers pertain to total (public & private) debt owed to non residents payable in foreign currency. Got to be careful with these numbers. As for public debt relative to GDP Australia is in very good shape. See link below.

https://www.cia.gov/library/publications/the-world-factbook/rankorder/2186rank.html

[2handband]

Just like the good ole USA

I get tired of hearing this; the US won't default. Why would we? Our debt is denominated in our own currency! As long as the fed has access to their virtual printing press there will be no default. We may debase the currency, but we won't default.

[perseverance8]

Just like the good ole USA

I get tired of hearing this; the US won't default. Why would we? Our debt is denominated in our own currency! As long as the fed has access to their virtual printing press there will be no default. We may debase the currency, but we won't default.

I agree, but debasement of our currency is essentially defaulting but through the back door. There are many ways that default could occur.  Debasement is on of these paths that can be taken and will essentially have the same effect of direct default.

[♥RÉĎRËÅMÊŖ♥]

RMG is correct from his link.........

This entry records the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.

108th   Australia              18.60 (as a % of GDP)   2009 est.

90   New Zealand   29.30 (as a % of GDP)   2009 est.

61   Switzerland   43.50 (as a % of GDP)   2009 est.

22   United Kingdom   68.50 (as a % of GDP)   2009 est.

8   Greece                108.10 (as a % of GDP)   2009 est.

2   Japan                192.10(as a % of GDP)   2009 est.

[RMG]

RMG is correct from his link.........

This entry records the cumulative total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.

108th   Australia              18.60 (as a % of GDP)   2009 est.

90   New Zealand   29.30 (as a % of GDP)   2009 est.

61   Switzerland   43.50 (as a % of GDP)   2009 est.

22   United Kingdom   68.50 (as a % of GDP)   2009 est.

8   Greece                108.10 (as a % of GDP)   2009 est.

2   Japan                192.10(as a % of GDP)   2009 est.

I always thought Japan was a fascinating case, their public debt is 192% of GDP, and climbing, while their external debt is about 35% of GDP - a nation of voracious savers. Personally, I'm very worried about Japan in the coming years.

[♥RÉĎRËÅMÊŖ♥]

I know! i never expected it to be right up there with Zimbabwe!

I don't quite understand the Japan situation to be honest.,.... something else is obviously at play....  bit Baffling.

i was looking for USA figures for 2009 and couldn't find them...... if anyone else has any luck i would be interested to see.