June 17th 2000


  Buy Issue 2585
Qty:

Articles from this issue:

EDITORIAL: Australia’s Pacific role

CANBERRA OBSERVED: Why “sorry” avoids the real Aboriginal issues

ECONOMICS: Foreign debt hits $255 billion

COVER STORY: Wrong way on drugs: new book

Straws in the Wind

ECONOMICS: From bad to worse: the future of world trade

PRIVATISATION: Telstra under fire

Australia and the world

LETTERS

REGIONAL AFFAIRS: West Papua: Jakarta takes the strain

MEDIA: “Australia Week”, junkets and the GST

MEDICINE: Trust me, I’m a bureaucrat!

ASIA: New era for Taiwan

Books promotion page
FONT SIZE:

ECONOMICS:
Foreign debt hits $255 billion


by News Weekly

News Weekly, June 17, 2000
Australia’s financial debt to the rest of the world has blown out to $255.5 billion. It is now equal to 41.8% of Australia’s annual output (Gross Domestic Product).

The Federal Government has used the sale of public assets to reduce its section of the foreign debt from $70 billion in 1996 to $27 billion today, and non-financial corporations have cut their foreign debt exposure to $51 billion.

However, since 1996, their contribution to the foreign debt has gone from $57 billion to $167 billion. It grew by a staggering $29 billion in the last six months of 1999.

Far from reducing the foreign debt, as promised in 1996, the Coalition has watched it increase from $194.9 billion to $255.5 billion today.

Australia’s foreign debt is the result of:

• the winding down of manufacturing industry leaving us heavily reliant on imported manufactures;

• the decline of our rural industries; and

• Australians saving far less than is demanded for investment purposes.

In 1996, The Economist magazine’s Economic Intelligence Unit clearly stated that Australia had no serious industry policy. Recently, Moody’s, the international investment rating’s agency, expressed concern that Australia’s “household savings ratio plunged to less than 1%, down from 6% three years ago.” Clearly, the Government has no savings policy.

The reality is that the economic policy agenda is now being set by the international financial markets to whom we are increasingly indebted.

That was made clear a few months after the Coalition was elected. In June 1997 Mr Howard addressed an International Monetary Conference in Sydney, that was host to top executives of the world’s largest 100 banks.

Before Mr Howard spoke, a former central banker and then chairman of the big US investment bank Goldman Sachs and Co., Mr John Corzine, most bluntly set out the what policies Australia needed to adopt it wanted to continue attracting foreign capital.

“There is no substitute for consistent, disciplined, fiscal and monetary policies ... We should not lose sight of the fact that for individual countries, chronic current account deficits are a symptom of a structural imbalance taking the form of over-consumption and under-savings.

“Commitment to privatisation, subsidy reduction, progressive tax policies, reduced public payrolls, pension reform ... will solidify credit worthiness, enhance competitiveness, and send welcoming signals to investors,” Mr Corzine said.

Until the Howard Government sets in place a serious set of policies to bring down the foreign debt, the course of action outlined by Mr Corzine will see the continued hollowing out of the middle class and the electorate’s disgust of our political parties will deepen.




























All you need to know about
the wider impact of transgenderism on society.
TRANSGENDER: one shade of grey, 353pp, $39.99


Join email list

Join e-newsletter list


Your cart has 0 items



Subscribe to NewsWeekly

Research Papers



Trending articles

NATIONAL AFFAIRS Cardinal Pell's appeal, June 5-6, 2019: An account from the live streaming

NATIONAL AFFAIRS A Q&A to clarify issues in Cardinal Pell's appeal

EDITORIAL Religious freedom: the political and legislative challenges

COVER STORY Transgender birth certificates: No sex, please, we're Victorian

COVER STORY John Setka, for all his faults, is the perfect scapegoat

COVER STORY Anthony Albanese: NSW left factional warlord takes charge

SPECIAL FEATURE Author Rod Dreher brings St Benedict to bear on our decline and fall



























© Copyright NewsWeekly.com.au 2017
Last Modified:
April 4, 2018, 6:45 pm