1.93's A$ to the Pound!!!
Nov 4th 2009, 4:26 am
#796
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Posts: 9,316
Re: 1.93's A$ to the Pound!!!
So we seem to have 2 schools of thought here.
School A: The size of the stimulus is more of a problem than the size of the debt.
School B: The size of the debt is more of a problem than the size of the stimulus.
I think I'll put my hand up for School B
School A: The size of the stimulus is more of a problem than the size of the debt.
School B: The size of the debt is more of a problem than the size of the stimulus.
I think I'll put my hand up for School B
Nov 4th 2009, 4:31 am
#797
has lost The Game
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Re: 1.93's A$ to the Pound!!!
It's actually not bollocks...as a percentage of GDP Australia has spent more than almost every other comparable country (if not the most) avoiding the recession, I saw the numbers the other week but can't find them again. The fact is the money was there to do it, which was different to some other countries.
Yes, really we need to be looking at the amount that has been borrowed to support stimulus as opposed to the total of the stimulus package.
I do cringe when I think about how the huge surplus built up over the Howard years is now gone. Certainly, if there are more economic hiccups around the corner, then there won't be anything left in the chest to fight it with, and Aus will head towards being a debt ridden basket case like the UK.
I really don't want to see that happen.
S
Nov 4th 2009, 4:42 am
#798
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Re: 1.93's A$ to the Pound!!!
In 2009 it has the 9th largest deficit as a % of GDP of these same G20 countries.
In 2010 it is forecast to have the 8th largest deficit as a % of GDP.
That shows just how BIG the stimulus was. Only the UK and USA at double Australia's deficit are in much deeper. Most of the other countries deficits are at or around Australia's levels.
Nov 4th 2009, 6:15 am
#801
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Re: 1.93's A$ to the Pound!!!
In 2008, Australia was one of only 5 countries in the G20 to be in Surplus.
In 2009 it has the 9th largest deficit as a % of GDP of these same G20 countries.
In 2010 it is forecast to have the 8th largest deficit as a % of GDP.
That shows just how BIG the stimulus was. Only the UK and USA at double Australia's deficit are in much deeper. Most of the other countries deficits are at or around Australia's levels.
In 2009 it has the 9th largest deficit as a % of GDP of these same G20 countries.
In 2010 it is forecast to have the 8th largest deficit as a % of GDP.
That shows just how BIG the stimulus was. Only the UK and USA at double Australia's deficit are in much deeper. Most of the other countries deficits are at or around Australia's levels.
On deficits. I just looking at the figures in the link you supplied earlier: for 2009 Aus comes out at joint 10th and 11th with China. Now given that there are 19 countries in the G20 that means that there are more members (9) with a deficit higher than Aus than with lower deficits (8).
On the size of the stimulus. I've not denied that Aus had/has a big stimulus. Not sure where you're going with this one.
Code:
Figures from website US -13.5 UK -11.6 Japan -10.3 India -9.8 France -7.4 Italy -5.9 Turkey -5.8 Russ -5.5 Germany -4.6 Aus -4.3 China -4.3 Can -4.2 Mex -3.9 Arg -3.3 Brazil -3.2 SK -3.2 SA -2.8 Indo -2.6 Saudi 4.2
Last edited by MartinLuther; Nov 4th 2009 at 6:39 am.
Nov 4th 2009, 10:04 pm
#803
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Nov 4th 2009, 10:06 pm
#804
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Location: Sydney
Posts: 564
Re: 1.93's A$ to the Pound!!!
And how did the debt compare?
On deficits. I just looking at the figures in the link you supplied earlier: for 2009 Aus comes out at joint 10th and 11th with China. Now given that there are 19 countries in the G20 that means that there are more members (9) with a deficit higher than Aus than with lower deficits (8).
On the size of the stimulus. I've not denied that Aus had/has a big stimulus. Not sure where you're going with this one.
On deficits. I just looking at the figures in the link you supplied earlier: for 2009 Aus comes out at joint 10th and 11th with China. Now given that there are 19 countries in the G20 that means that there are more members (9) with a deficit higher than Aus than with lower deficits (8).
On the size of the stimulus. I've not denied that Aus had/has a big stimulus. Not sure where you're going with this one.
Code:
Figures from website US -13.5 UK -11.6 Japan -10.3 India -9.8 France -7.4 Italy -5.9 Turkey -5.8 Russ -5.5 Germany -4.6 Aus -4.3 China -4.3 Can -4.2 Mex -3.9 Arg -3.3 Brazil -3.2 SK -3.2 SA -2.8 Indo -2.6 Saudi 4.2
I have said before that the Oz stimulus being so big is what has SO FAR stopped Australia officially going into recession. Will it be enough going into 2010?
Nov 4th 2009, 10:16 pm
#806
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Re: 1.93's A$ to the Pound!!!
The Labour Government was lucky in that it had a surplus to begin with.
Do you believe that it has used that surplus wisely if it somehow means that Australia has avoided the GFC as you are suggesting
Nov 4th 2009, 10:17 pm
#807
Guest
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Re: 1.93's A$ to the Pound!!!
What grounds are actually out there, to now cause a recession in Australia ?
Nov 4th 2009, 10:21 pm
#808
Guest
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Re: 1.93's A$ to the Pound!!!
Would any other party have not used fiscal stimulus to try and fight the recession??
The Labour Government was lucky in that it had a surplus to begin with.
Do you believe that it has used that surplus wisely if it somehow means that Australia has avoided the GFC as you are suggesting
The Labour Government was lucky in that it had a surplus to begin with.
Do you believe that it has used that surplus wisely if it somehow means that Australia has avoided the GFC as you are suggesting
was directed purely at the 2010 reference, if you care to re-read it.
Posted by swigski
In 2010 it is forecast to have the 8th largest deficit as a % of GDP.
Posted by ABCDiamond
But that's down to having a Labor government, nothing to do with anything else
In 2010 it is forecast to have the 8th largest deficit as a % of GDP.
Posted by ABCDiamond
But that's down to having a Labor government, nothing to do with anything else
Nov 4th 2009, 10:21 pm
#809
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Re: 1.93's A$ to the Pound!!!
Nov 4th 2009, 10:47 pm
#810
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Re: 1.93's A$ to the Pound!!!
Australia has spent a higher percentage of its GDP on stimulus. I accept that.
House prices are high. Not news. House prices remain high in the UK too even after they have suffered what is the longest recession in history. House prices go up and go down. We all know the cycle.
Both of those factors a recession do not make.
All economies are approaching the recovery with caution but with other global factors such as a shift to the East as powerhouses of the next few decades most likely, I can see overall nothing that will lead to recession and neither it seems do any economists.
Of course our nice Labor government could screw it all up and spend some more money yet...
