Government Debt Growth

[Michael Cornips]

Government debt growth has not slowed down significantly to indicate any return to a Government budget surplus. Together with the current down trend in long term interest rates, a promise of an investment boom is not yet apparent.

State Government debt has grown by $25 Billion over 12 months. Federal Government debt has grown by $49 Billion over 12 months (as at 31st May 2011. Source:RBA). Total Government debt growth: $74 Billion. Total Government Debt: $369 Billion.

It will be interesting to see the political landscape 12 months from now, if this trend is maintained. The promised budget surplus will need to be re-assessed, the government will be looking to cut spending as an alternative to increased revenue, the economy will have slowed further and all of this running into the start of the carbon tax. Tough politics indeed.

Michael Cornips

 

[noirua]

WORLD DEBT
https://www.usdebtclock.org/world-debt-clock.html

 

[rederob]

View attachment 122653WORLD DEBT
https://www.usdebtclock.org/world-debt-clock.html

Somehow that comes up in a facebook account framework, so I cannot access it via your link.
This is my link.

And a good look at it proves my case for gold's strong future.

 

[basilio]

View attachment 122653WORLD DEBT
https://www.usdebtclock.org/world-debt-clock.html

Lot of red ink there. Chinas debt looks outstandingly modest.( I wonder if there is a lot more that is hidden ?) Almost everyone else looks as if they could fall over with a decent blow.
If wonder how these realities would be affected by a shooting war in Ukraine and/or Taiwan.

 

[basilio]

Other analysis's of world debt.
So who is holding the chits on all this money ?

https://www.visualcapitalist.com/debt-to-gdp-continues-to-rise-around-world/

COVID response drives $24 trillion surge in global debt: IIF

The COVID pandemic has added $24 trillion to the global debt mountain over the last year a new study has shown, leaving it at a record $281 trillion and the worldwide debt-to-GDP ratio at over 355%.

www.reuters.com

Global debt soars to 356% of GDP

"The upswing was well beyond the rise seen during the 2008 global financial crisis."

www.axios.com

 

[Value Collector]

Other analysis's of world debt.
So who is holding the chits on all this money ?

https://www.visualcapitalist.com/debt-to-gdp-continues-to-rise-around-world/

COVID response drives $24 trillion surge in global debt: IIF

The COVID pandemic has added $24 trillion to the global debt mountain over the last year a new study has shown, leaving it at a record $281 trillion and the worldwide debt-to-GDP ratio at over 355%.

www.reuters.com

Global debt soars to 356% of GDP

"The upswing was well beyond the rise seen during the 2008 global financial crisis."

www.axios.com

Interestingly a lot of the debt is owned by the reserve banks of the world, who are technically owned by their respective governments, so the governments are in debt to themselves.

For example when a reserve bank buys government bonds, it is basically "printing money" to buy those bonds and handing that money to the government in return for a piece of paper called a bond, which it then earns interest on and sends its net profit back to the respective government.

Some bonds are also owned by individuals and institutions around the world, but its also important to remember that the "Net debt" of the world is actually zero, for every debt that pops into a balance sheet somewhere and asset pops up some where else, its no big deal, what is more important is productivity, eg are we producing more goods and services each year, that will be the ultimate factor that decides whether we prosper or not.

 

[jbocker]

Interestingly a lot of the debt is owned by the reserve banks of the world, who are technically owned by their respective governments, so the governments are in debt to themselves.

For example when a reserve bank buys government bonds, it is basically "printing money" to buy those bonds and handing that money to the government in return for a piece of paper called a bond, which it then earns interest on and sends its net profit back to the respective government.

Some bonds are also owned by individuals and institutions around the world, but its also important to remember that the "Net debt" of the world is actually zero, for every debt that pops into a balance sheet somewhere and asset pops up some where else, its no big deal, what is more important is productivity, eg are we producing more goods and services each year, that will be the ultimate factor that decides whether we prosper or not.

Would it be fair to say this sounds like..
Keep my cakes and eat* them too. Just dont run out of ingredients or lose the cooks**.

* sell (not eat) might be better?
** crooks (not cooks)

 

[Value Collector]

Would it be fair to say this sounds like..
Keep my cakes and eat* them too. Just dont run out of ingredients or lose the cooks**.

* sell (not eat) might be better?
** crooks (not cooks)

The way I see it that money is just a made up thing we use to for trade and as a unit of account, it has to be relatively stable in price, so it’s total amount available in the system needs to be able to fluctuate as needed.

the current system of reserve banks lending it into existence provides a pretty decent mechanism to grow the money supply as the economy grows, while also giving them the ability to manage its value and provide stability and stimulus as needed.

as I said what is really important is the real world production of goods and services, the monetary system is just there to support and facilitate that production and distribution of those goods and services.