Fiscal Prudence

[It's Snake Pliskin]

This can be a thread for fiscal related prudence and ways to manage economies etc.

After reading an article today by Peter Costello I think he says it right when we need to keep debt low. After the recent stimuluses how is the government going to manage our debt? ( it is our debt not their's)

Source: http://www.smh.com.au/opinion/japans-lost-decade-is-a-lesson-for-us-all-20090317-90x2.html

One of the reasons a government should keep its debt low is so its decision-making is not compromised by the need to square off its financiers.

Countries rise and countries fall. We should be careful about drawing recent past performance as a linear projection over long time periods into the future.

 

[It's Snake Pliskin]

What does K Rudd know about fiscal prudence and responsibility? Not much according to this article:http://2gb.com/index.php?option=com_content&task=view&id=5731&Itemid=134

How can people overseas, dead people and dogs get the handouts?

 

[Happy]

Personally I do not agree with aimless handouts.
Looks that decision for second stimulus was rushed through with only qualifications to have earned below certain level and pay tax.

Should somebody run the test case, chances are it would be picked up.
What I don’t understand is why they cannot rush through parliament amendments of some sort to rectify most of the problems like to be more than 9 months in Australia in last financial year and exclude deceased estates.

If they could get stimulus approved, surely there should not be too much drama in pushing amendments through especially that Liberals would have to vote for it, since they found the anomalies.

 

[Temjin]

Here is an EXCELLENT paper recently released by Weiss Research Inc. It's a MUST READ.

http://www.moneyandmarkets.com/files/documents/banking-white-paper.pdf

Depression is surely on the way, but there are recommendatinos on how this crisis should be managed.

Note, a large half of the paper are list of banks in the US and their street rating. So don't be put back by how much readings need to be done.

 

[Trevor_S]

This can be a thread for fiscal related prudence and ways to manage economies etc.

I do think it's fiscally reckless for federal Governments to use debt to fund services, I have no problems however with them using a modicum of debt to fund responsible productive infrastructure in times of recession, in fact I think it's prudent of them to be contrarian in that respect.

I find the current largess fiscally irresponsible... but then I found Costellos largess fiscally irresponsible as well. Middle class welfare is also bad policy and fiscally irresponsible and howard/costello managed to piss away massive corporate windfalls on it, rather then accumulate funds to be used towards future infrastructure spending in times of recession.

As to world governments responses, I think NZ has led the way in this regard.

I do however acknowledge that being fiscally prudent will not win you Government, so if you want to get into Government you have to waste money, great gobs of money. I do worry about state governments using debt irresponsibly, look to Vic. pre Kennet for indications of how that can turn out and Qld is heading down that path now.

 

[Happy]

..
I do however acknowledge that being fiscally prudent will not win you Government, so if you want to get into Government you have to waste money, great gobs of money. ..

Democracy has its very weak spot here.

 

[Jikx]

How can people overseas, dead people and dogs get the handouts?

Probably because it's easier just to do a blanket hand out than try to pick and choose, and end up with a hundred exclusions, delaying payment because they don't have the data/have to to compile it together, have people bitch about delays to payments, then have people having a bitch when they were unfairly excluded, and people bitch that X and Y should also be excluded, and people will bitch if you're excluding, why aren't you including.. bitch bitch moan moan delay delay .. you get the idea.

 

[Smurf1976]

What governments forget is that fundamentals almost always win out in the end. You can only maintain the illusion for so long, and it's nearly always a complete waste doing so.

The credit bubble was going to end, we knew that years ago. What we didn't know was when it would happen, but that's no excuse to not have accumulated a massive war chest during the boom that could be used now.

Liberal: Failed

Labor: Unproven since presently in government but will most likely also Fail.

What a wonderful system. Vote for those who failed or those who are about to fail.

 

[Julia]

What governments forget is that fundamentals almost always win out in the end. You can only maintain the illusion for so long, and it's nearly always a complete waste doing so.

The credit bubble was going to end, we knew that years ago. What we didn't know was when it would happen, but that's no excuse to not have accumulated a massive war chest during the boom that could be used now.

Liberal: Failed

Labor: Unproven since presently in government but will most likely also Fail.

What a wonderful system. Vote for those who failed or those who are about to fail.

And that is the whole miserable truth.

 

[Stormin_Norman]

there is so much savings in the world.

that saved consumption is then borrowed for either consumption or investment else where.

if governments borrow that money then others cannot.

the 40 billion the govt has borrowed to give to bogans is 40 billion companies wanting to borrow for profitable projects will not be borrow.

fiscal prudence can be improved by gaoling every member of government which cannot balance a budget.

 

[It's Snake Pliskin]

government which cannot balance a budget.

Businesses are expected to balance a budget. Why not governments?

The reality is when a governement doesn't balance a budget it jeopardises the members of the nation which it represents.

 

[GumbyLearner]

Sorry Snake not having a go but the title of your thread is

an Oxymoron these days!

 

[It's Snake Pliskin]

Sorry Snake not having a go but the title of your thread is an Oxymoron these days!

Yes, it is. Those who have been profligate may come out on the side that does well.

 

[Stormin_Norman]

Businesses are expected to balance a budget. Why not governments?

2 reasons.

1. voters like voting to receive money they dont have.

2. keynes told us it was possible.

 

[GumbyLearner]

2 reasons.

1. voters like voting to receive money they dont have.

2. keynes told us it was possible.

Does anyone know where I can score some beast-stimulators?