I’m sure you’re growing a little weary of the farce that Australian politics has become this last week. I’ll keep the previous thread going, with updates as they occur. If, as I suspect, moves begin in Cabinet against Gillard, I’ll start a new thread.
Work has made me a bit of a prisoner this last week, and will continue to do so for a while yet. So I thought I would kick off a new discussion topic, which was suggested to me by this article in the DT by Daniel Hannan. Government debt, always a problem in recent years but exacerbated since the 2008 GFC when governments across the West took over failed banks, investment houses and other industries, effectively nationalizing them. It had the effect—partially, at least—of one plank of the socialist manifesto: nationalization of the banking system. How long, though, can this be sustained in the face of a seemingly endless stream of profligate, Keynsian-style fiscal stimulus?
What happens when the cash runs out? Will the U.S. respond with yet more “quantitative easing”; that is (to all intents and purposes), printing more dollars, thereby making all the other dollars worth less? Click the U.S. Debt Clock above for real-time numbers on just how deep the hole is already. For comparison, I’ve been reading some fascinating articles on Niall Ferguson’s marvellous website, including this one reproduced in the DT earlier this year.
So, over to you. It’s Father’s Day in Australia today, and I belong to the kids; though they’ll have to share me with work. Never rains for small business, but jeez, sometimes it pours.