"GOOD" DEBT? WHAT A CON
My editorial from The Bolt Report :
the Turnbull Government says its Budget will distinguish between "good
debt" and "bad debt". But is there any difference - and would you really
trust a government to know it?
So Bolt has dragged the IPA's Dr Sin ( Sinclair} out to disparage the Turnbull budget.
The head of their right wing rag the Catallaxy Files to explain Economics 101 to us because sure as hell Andrew Bolt can't. It's simple in
business there is a very old Jewish saying "use other peoples money to make a
profit". That is good debt That is banking That is the Stock Exchange.
As a wholesaler you come to understand more often than not that
you are in the credit business not the product business and Capitalism is the debt business. Your only as
good as the credit you can provide. In order to do that you will have debt on your books and it's an asset. It's the debt you accrue the credit
you get get from your suppliers and which you can pass on to your
clients to generate a profit. As an asset clearly it's a good debt and it
generates profit for the business. However because there is no certainty in business which Bolt acknowledges exists and demarks good from bad you can't trust
governments to know the difference. There is no con good debt does exist.
The
Con: Debt is a government no go zone should not be involved in debt good or bad only private interests have the right of profit.Government involvement in the national economy is minimal spending and the facilitation of private profit.
Bolt promoted Abbott and Hockey as our saviors from the GFC at a time of growing debt they were the better money managers. Swan who was voted the world's best Treasurer was a waste of space. Remember the domestic cry from Bolt, News Corp and the opposition the sky was falling in and all those pre election promises of "no cuts" but better management Tony would fix it.. That was the great con that that Tony and Joe would fix it. When in government Hockey and Abbott sold the story was it was worse than they imagined the books had been cooked and it would take longer to fix. We'd heard that bullshit before and it wasn't long before Abbott could no longer hold that line.The domestic message the sky was falling in was being pushed by News Corp and 2GB. However they couldn't tell that to the world could they it would drive investors away. Hockey was telling NZ and other countries there wasn't an economic emergency at all that the economy was great. The con or jig was up and it showed in the polls. So
finally Abbott said after the second budget we 'fixed' the debt problem and have turned it around the "emergency" is over. However we no longer believed him. He had raised the debt
ceiling to $500bill, borrowed and spent for political gain and show rather than the dough and
national benefit. Abbott was Peter Foster and had banned his party from the ABC because they asked the real questions