Hockey To Lift Debt Ceiling by 33%, and the Hypocrisy Level to an All-time High.

If you search really hard, you’ll find some reporting of this:

“The Federal Government’s debt ceiling could be raised to $400 billion in a bid to head off the financial tremors facing the US.

Treasurer Joe Hockey has used a speech in the US to signal the debt ceiling – currently $300 billion – would be increased to take account of the Government’s required borrowings.

Mr Hockey will have to increase Australia’s debt ceiling by Christmas. Total debt is expected to peak at $370 billion by April 2016.

Mr Hockey said yesterday the ceiling was likely to be well above the bare minimum required.

“We believe the debt limit needs to be set at a level that provides sufficient headroom to accommodate likely events but also to provide discipline to budgetary management,” he said.

“It must be the case that debt limits should only be altered when unexpected significant events necessitate a call on the markets.”

The Federal Government yesterday sold $800 million in debt at an interest rate of 3.8 per cent, taking total debt on issue to $284.5 billion.”

The West Australian

Of course part of this, like everything for the next few months, can reasonably be argued as a hangover from Labor. (Although I suspect any fall in unemployment will be claimed immediately!) It’s the sentence sandwiched in between all those other boring numbers that I want to draw everyone’s attention to!

“Total debt is expected to peak at $370 billion by April 2016.”

Now I know that there are various ways in which it can be argued that our net debt isn’t as high as the figures being thrown about. And I am well aware that relative to GDP, Australia is very well off compared to the rest of the world. Economics is rarely ever straightforward, so I don’t want to be distracted from the main point here by all the intricacies of Australia’s debt.

Taking the figure quoted in the article, our current debt in $284.5 billion, then the estimate of $370 billion by 2016 increases our debt by $85 billlion dollars. I’m aware that almost no-one – including me – grasps really big numbers, so let me break this down a little.

After nearly three years of an Abbott Government that was elected to stop Labor’s “wasteful” spending” and to stop putting things on the “credit card”, they will have actually increased our total debt. Of course, it could be argued that this figure is only an estimate, but according to some reports Hockey wants to raise the debt ceiling to $400 billion to cover “contingencies”.

Or to break the figure down a little more, it means that the Government will be borrowing close to $100 million a day for the next three years. Now where have I heard that figure before? Oh that’s right, from here:

“Every year that the budget is in deficit is a year that Australia is living beyond its means,” says the Coalition’s Treasury spokesman, Joe Hockey.

The Coalition’s calculation that Australia is borrowing $100 million a day gives a sense of government excess.

- See more at: http://www.theaustralian.com.au/business/opinion/a-credible-path-back-to-surplus/story-e6frg9qo-1226330714317#sthash.3NksimEy.dpuf

And here:

TONY ABBOTT:

I think that if the Government wasn’t borrowing $100 million every single day it would a lot easier for the banks to keep interest rates down. Everyone needs to understand that when the Government is out there borrowing $100 million every single day, there is going to be upwards pressure on interest rates. So, the best thing the Government can do to help the Australian people is get its own spending under control.

Just as well the Liberals are there to fix this budget emergency, because borrowing well in excess of $90 million dollars day is apparently no problem at all.

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Categories: General, Politics

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48 replies

  1. Unbelievable aren’t they – such lying hypocrites

  2. Lies, lies and more lies. Oh well.

  3. I wonder if Joe will claim ownership of lower interest rates too?

  4. Someone please wake me from this nightmare.

    Sydney Western suburbs….are you all pleased with yourselves? Got what you so desperately wanted….now enjoy your treats. Wankers.

  5. 5 months ago we heard this.

    “THE Coalition has raised the prospect of a US-style move to block government attempts to lift the debt ceiling, raising the prospect of turmoil on financial markets.

    While not saying outright the Coalition would block the increase to $300 billion proposed in the budget, shadow treasurer Joe Hockey told the National Press Club yesterday enough was enough. ”Labor has now sought increases in the debt limit of the Commonwealth from $75 billion to $200 billion, to $250 billion and now $300 billion. On each occasion they promise not to exceed the limit. Well, enough is enough – we are going to keep them to their promises,” Mr Hockey said.”

    Read more: http://www.smh.com.au/business/hockey-issues-warning-on-debt-ceiling-lift-20120516-1yr65.html#ixzz2i7asOzZr

  6. And pray tell….where’s Rupert screaming disaster on all of this?…..oh, I forgot, that was last weeks news……

  7. I need to get a shirt saying don’t blame me I didn’t vote for them How to fix a so called debt crisis raise the debt ceiling that’ll do it

  8. I’m going to keep all these in a file and before the next election, personally hand them to the Shadow Treasurer. I want this info to be at hand at the start of any election

  9. Buffoons the lot of’em……

  10. “The public service appears to be growing more secretive under the Abbott government after the Treasury shielded its first brief for Joe Hockey from public scrutiny.
    The decision reverses the step towards transparency that the agency took three years ago, when it became the first of many federal departments to release its ”red book”, the introductory brief for an incoming Labor minister.

    Late on Friday, the Treasury said it would reject requests to access the Coalition brief, or ”blue book”, which it gave to Mr Hockey last month. It said making the secret brief public might damage its relationship with the new Treasurer.”

    http://www.canberratimes.com.au/national/public-service/air-of-secrecy-as-treasury-rules-against-releasing-hockey-brief-20131018-2vsrm.html#ixzz2i6xLBzQ2

  11. Hypocrisy instead of well intended bureaucracy … This means that the LNP’s future foresight of a budget deficit has now been blown away to the four corners of the Earth and will not eventuate … Just another lie to add to a now huge tally … Bill Shorten and Co; please hold these irresponsible clowns to account in every step they attempt to take and show all Australians the mistake of their ways to try and control us through their allies, Rupert and the MSM …

  12. Sydney Western suburbs….are you all pleased with yourselves? Got what you so desperately wanted….now enjoy your treats.

    Check the election results Geoff of Epping and I think you will see that Abbott didn’t do all that well in Sydney’s Western suburbs, at least nowhere near as well as the polls and the huge effort that went into lobbying those electorates would have you believe would be the case.

  13. “unexpected significant events”
    Abbott prior to the election when asked about his promises stated EMPHATICALLY that a promise was a promise and that he would NOT use the excuses such as “unexpected significant events” to justify changes from his pre election position.

    Well that didnt last long …. yet another prmise broken already …

  14. The “Budget Emergency” was just one of several major deceptions on the public. Disinterested voters were duped into believing that “luxuries” (such as actually acting on climate change or delivering a superior NBN than the ones that exist in third world) must be sacrificed to get the budget back in the black when in actual fact, the budget outcome is no different. So why are we sacrificing our clean energy fund, our income tax cuts (via Labors lower tax free threshold), our small business tax cuts and our world class NBN for?
    It seems the beneficiaries would be the companies who provide coal fired power who can now pollute the air for free. As well as the (mostly foreign owned) companies who invest in mining operations who are now sparred the MRRT.

    By removing any pricing on carbon pollution, we may get most of a 10% drop to our power bills if we are lucky (enforcing this will require an audit by the ACCC which will cost tax payers money too) even all power companies do pass on all the cost savings to the consumer that is still only saves me personally about $2 a week which I want to pay & would be happily paying much more to help assist in a faster economic transition to renewable energy. Now the coalition will certainly break their promise to reduce carbon dioxide pollution to 5% below 2000 levels by 2020 because you can’t remove carbon pollution from the economy by making polluting free again and then closing the clean energy finance corporation. Handing our highest polluting industries a combined $3.2 billion bribe to provide incentives polluting industries for “initiatives” just wont cut the mustard – not after you just spared the same industries from having to pay a carbon price which was a combined $9 billion incentive NOT to pollute.

    Having babies will now become quite lucrative business with women getting paid up to $75,000 each time they give birth but only if they already earn $150,000 a year or more (and to avoid anti discrimination suits that MUST include strippers and prostitutes who earn $150K or more too). Babies born to women on lower incomes are apparently worth much less so they get only half their mother’s annual salary instead of the $75000 offered to wealthier woman. Presumably woman who were not employed at the time they give birth get nothing. Perhaps Tony Abbott who once famously described abortions as the easy way out has discovered it much more popular with women voters to pay them for not aborting inconvenient pregnancies rather than punishing them when they do. After all the same sort of concept really helped his lobbying mates who loved it when he said he would pay polluters not to pollute (as much) instead of making them pay when they do. I suppose you could call it his “direct action” policy for abortions. And it looks we’ll all be paying a very high price for it.

  15. http://bilbo.economicoutlook.net/blog/?p=25512

    Liberals wont be able to run a budget surplass. Though they will try to do so at the expense of the poor, the environment, and diverse economic portfolio. Their economic ideology means they wont understand the relationship between private debt and government spending and wont want to. Ignorance is bliss when you’re a greedy conservative.

  16. Reblogged this on The Kettle Press and commented:
    So, who is it spending like drunken sailors, as the then opposition loved to parrot like drunken pirates about the then government?

  17. The bi election in Miranda NSW.
    Labor needs a 21% swing.
    Have gained a 22.25 % swing

    Abbott, be afraid, be very afraid of a DD.

  18. Typical right wing hypocrites, when Labor does something, it’s bad, but when the LNP do the same thing only worse, it’s good :shock:

    “Australia might be open for business, but parliament isn’t!” :grin:

    http://truthseekersmusings.wordpress.com/2013/10/16/australia-might-be-open-for-business-but-parliament-isnt/

    Cheers :grin:

  19. Cornie @8.06
    It’s now 27.5%.

  20. As Abbott promised – No surprises.

  21. he gutsed on food now he’s gutsing on debt…..
    The debt ceiling? Is that like gastric banding for the Govt?

  22. joe’s borrowing $100.000.000 a day, he looks like he has a very big appetite , but surely he cannot eat that much can he ??? or is there a few weddings on the horizon ??

  23. Are “Liarbril” Ministers refusing to speak because, either they have nothing to say or, because what they have to say is not meant for the electorate, only for the business interests who paid for their mandate?

  24. So they do believe in Keynesian economics after all……LOL!!!!!

  25. One gets the impression that Hockey doesn’t realise what he says overseas is reported here. Like the end of the age of entitlement speech made in London, was it? Whatever; stories like this simply serve to underline the fact that Labor were not poor financial managers but that the LNP are the greatest bunch of bullshit artists this country’s ever seen. Biggest disappointment of course is that so many heard the turd, believed the turd and voted the turd. 3 years of this? N.Z. looks better every day. Or perhaps Joe could be persuaded to stay where he is. Now there’s a comforting thought.

  26. The reason that no Liberals are speaking is because Peta Credlin won’t let them. I am finding this increasingly worrying. This woman was not elected to any position but she is now running the country. She decides on policy and how to present it. She decides who can speak to whom and when and what they must say. She decided who would get what position in the cabinet. She sits next to Tony at all meetings. She has assumed power WAY beyond her employed position and Tony, along with everyone else, is doing as she tells them to. This is a very dangerous situation as all this woman is interested in is maintaining the lies, spin and image that got her protege into power whilst stopping the flow of information and gagging any debate.

  27. We all knew that dopy tone couldn’t dream up all the bullshit that’s coming out of his mouth , did Murdock put Peta Credlin in wabbits office ? that must really hurt having a woman telling what to do ? She must be like abblot , drunk with power.

  28. I don’t know what the Abbott government is spending their increased debt on for it’s certainly not on the environment, social services, Defence (DMO slashed) and now $7 billion Gonski years 5 and 6 is to be replaced by $70 million and a three word slogan, “Putting Students First”.

    I keep wishing this government is a nightmare that started when they chose Abbott as leader and culminated in terror on September 7 2013, but each day passes and each day the nightmare goes on and gets to greater depths of horror.

  29. The economy IS simple, stupid:

    If Labor are running it – every single thing they do is wrong, wasteful, incompetent and opens a debt hole the size of the universe.

    If LNP are running it – every single thing they do, just from thumping their derrieres onto the seats in their new appointed federal offices means that debt magically disappears into a $360 billion PRECAUTION. As opposed to a debt hole.

    Get It?

  30. It really disappoints me that Australian voters were so easily duped by Murdoch & Co to elect this lot of hypocritical evasive LNP political show-ponies masquerading under the dishonest banner of “conservative” (Their objective to conserve Corporate profits is the only conservative feature I can identify in their ideology).
    The lack of truth and policy substance was there for all to see, if only they had used their intelligence to challenge the MSM’s saturation propaganda campaign,

    I like to think an earlier generation would generally be aware of Joseph Goebbels “achievements” in 1930′s Europe and see the elaborate media hysterics and fabrications for the lies that they were.
    In fairness, the journalists of the MSM should accept the bulk of the blame – it is their job to objectively analyse and examine policy – they didn’t; in fact they led the anti ALP lynch mob, sooled on by ambitious politicians and avaricious resource/media owners – facts ignored n preference for commercially driven drama and sensation. Indeed, if it wasn’t for some courageous journalists of integrity in the 5th estate, honest and truthful analyses of LNP policies would not have been published by any available outlet

    Fascism is now apparently a distant memory – superseded in the mindset of a ‘comfortable well off’ populace by amoral greed and selfishness, fanned on by extreme capitalism’s sponsored media presenters who spread Indignant outrage towards any meaningful social /environmental friendly policy.
    Government social/financial support policies for the ‘lazy undeserving’ less well off, who can’t or don’t follow the ‘bugger you, I’m all right Jack’ rat-race for greater wealth, is portrayed as scandalous waste – unfair to all those fortunate fit and able successful ‘workers’.
    Compassion and ethics never get a guernsey – the environment is of course a ‘magic pudding’ to be endlessly exploited to ensure ‘essential’ economic growth.

    As a result, we now have a government that has promised to collaborate with corporate objectives to expand resource exploitation of fossil fuel resources and pollution of Earth’s atmosphere, while reducing tax on big business and eliminating an already inadequate measure to reduce co2 emissions. As usual, the common citizens are the losers and will pay first.

    Economic management will consist of minimising expenditure on infrastructure and selling off “common wealth” assets to corporations (a la Howard) who will extract and privatise profits, while abandoning any ‘uneconomic’ customer’s requirements.

    Thank you MSM journalists of Australia – remember you have sold out your own children’s future as well as ours.
    May your conscience never forgive you – your grandchildren certainly won’t.

  31. Borrowing to pay for the lost revenue from the Price on Carbon and the Mineral Resources Tax. Put extra money into the NBN by letting competition cherry pick the most profitable markets. Keep snouts in the trough, have commissions into pink bats, and all the time try and keep everything secret. Yep adults in charge.

  32. To all you thinking of moving to NZ they are as of now signing that secretive TPP agreement that the liberals are negotiating (google, wikileaks and other forms of media other than news corp will give you an idea of what the current Australian government is about to sell the country for – but you won’t find it in the main stream media) and you’ll be lucky to find a job that pays as well as your Australian job.

  33. Regarding the Miranda by-election. Collier’s use of polling booth placards warrants some attention:

    http://www.abc.net.au/news/2013-10-19/outside-a-polling-place-for-the-miranda-by-election-in-sydney/5033656

    Liberal colours? What’s that all about?

  34. I guess they work on the assumption that BS baffles brains. Abbot must be pondering his fate should there be a DD

  35. It sounds like the government by raising the debt ceiling is doing nothing more than entering into a liquidity support arrangement [access to pre-arranged funding to cover any unknown contingency]. It does not mean that they are going to spend the money. It is a normal business practice for those who take money on deposit and make loans to have liquidity support arrangements in place. We should all get worried if they start spending thereby increasing our current level of debt. I believe that it is quite normal to pay for these arrangements even in circumstances where they are not drawn on.

  36. He wont have the ticker to go to a double dissolution .

  37. On the subject of a double dissolution, for those who didn’t read this when it was first posted:

    http://theaimn.com/2013/10/14/double-dissolution-now-well-no-thats-actually-not-possible/

  38. FFS Hockey just announced the debt ceiling is being raised to FIVE HUNDRED BILLION. This is after saying in May last year ”Labor has now sought increases in the debt limit of the Commonwealth from $75 billion to $200 billion, to $250 billion and now $300 billion. On each occasion they promise not to exceed the limit. Well, enough is enough – we are going to keep them to their promises.”

    To add salt to the wounds he announced the commission of audit panel was to include Amanda Vanstone????? It has a “very broad range of reference” and will report back in January???? and then again in March???? They must have already decided what they want to say and are just working on the wording on how to sell it. Of course Matthias Cormann said it was all Labor’s fault. These guys are unbelievable!!!

  39. Well, I was wrong he’s not lifting it 33% – he’s lifting it by 66%. Must blog an apology to everyone.

  40. Well well well , what a bunch of lying thieving bastards , looks like tone is going for broke, now the country is really BIG trouble , this is an admission of stuffing up mining tax , climate tax and others.

  41. Can anyone tell me what these people’s qualifications are to lead such an important review?

    FORMER Liberal minister Amanda Vanstone will be a member of the five-person Commission of Audit to be announced today by the Abbott Government to help cut government running costs.

    Business Council president Tony Shepherd will chair the panel.

    Ms Vanstone was a minister in the Howard Government for various portfolios including employment, family and community services and immigration. She was also Ambassador to Italy. Ms Vanstone is now chair of the national board of the Royal Flying Doctor Service, a board member of the Port Adelaide Football Club and an ABC Radio National presenter.

    Mr Shepherd is chairman of Transfield Services, a director of Virgin Australia, director of the Migration Council and chairman of the GWS Giants.

    Mr Hockey recently said the audit would examine spending “line by line” to ensure the government delivers services and support people need in the most effective and efficient way. (IN THREE MONTHS)

    http://www.heraldsun.com.au/news/former-liberal-minister-amanda-vanstone-appointed-to-commission-of-audit/story-fni0fiyv-1226744527908

  42. The sooner you actually get in touch with this debt help provider that will help you with your economic crisis, sooner you can actually eliminate credit card debt. Go through these assessments as well as get out of debt free of chapter 7 bankruptcy.

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