Comments on: Park the Debt Truck!

By: Infrastructure Bonds

Infrastructure Bonds — Tue, 17 Aug 2010 07:09:14 +0000

[...] I have argued in the past that the near-hysterical concern about Government debt is overdone. For a start, Government debt in [...]

By: Where are Australian debt levels headed now? | Stubborn Mule

Where are Australian debt levels headed now? | Stubborn Mule — Sat, 20 Mar 2010 11:05:29 +0000

[...] have been a lot of posts about debt on this blog and the chart comparing government and household debt, which appeared in two of those debt posts, has proved particularly popular in discussion forums [...]

By: Blame Greece's Debt Crisis on the Euro

Blame Greece's Debt Crisis on the Euro — Thu, 18 Feb 2010 07:19:22 +0000

[...] opposition, Malcolm Turnbull, began attacking the government’s stimulus package, I argued in “Park the Debt Truck” that there was very little reason to be worried about Australia’s public [...]

By: Jobs business

Jobs business — Sat, 08 Aug 2009 13:15:46 +0000

The graphs of the debt look interesting. The government debt has come down and the household income has gone up. But how about the GDP ratio vs per capita income. Has that also gone up.

By: Deleveraging and Property Prices | A Stubborn Mule's Perspective

Deleveraging and Property Prices | A Stubborn Mule's Perspective — Wed, 22 Jul 2009 07:38:22 +0000

[...] household debt, most of which has been in the form of mortgage debt. The next chart is taken from Park the Debt Truck!, a post which looks at trends in Government and household debt in Australia. The highlighted [...]

By: stubbornmule

stubbornmule — Mon, 20 Jul 2009 01:31:54 +0000

Paddy: this earlier post has some international comparisons of Government debt, but I agree that some comparisons of private debt would be enlightening too. As for the "right level" of debt, that is a harder question as you say. I'd see Government debt as simply an outcome of the economic cycle, so there is no right level. Governments can spend too much in a given period if they go over and above levels to compensate for inadequate private sector demand, but if the economy stays weaker for longer, debt will rise further, but it will eventually fall again once conditions improve. As for private debt, there must be an upper bound (unlike Governments there is a hard income constraint). It's hard to say what the right level is, but I'd say it has gone too far of late.

By: Paddy

Paddy — Mon, 20 Jul 2009 00:14:37 +0000

The long time-series is great for persective. But there are two other things that would also aid understanding. First, what is out debt (net national/private/public) in relation to comparable nations, and second, what level should debt be? The former is well within the mules paddock – data hound that you are. The second is a terribly hard question, but your thoughts would be welcome.

By: stubbornmule

stubbornmule — Sat, 18 Jul 2009 06:57:50 +0000

I have added a link to a Paul Krugman opinion piece where he argues that government deficits saved the world.

By: stubbornmule

stubbornmule — Fri, 17 Jul 2009 07:38:30 +0000

@had enough: I may be happy for the Government to attempt to boost a flagging economy, but that doesn’t mean I’m ready to throw myself on the bosom of Kevin for all my wants and needs.

By: had enough

had enough — Fri, 17 Jul 2009 07:31:58 +0000

you say, dont be afraid of government debt. government can never run out of money, simply just print more.thats FANTASTIC.,we should all give up slaving for the goverment,..banks ,..and all the other parasites,and let the m look after us for a change. geeeeee im stupid