darryle, I don't think people will pay 40% more for an AUD so that they can earn 4% interest and then perhaps lose the 4% or more if the AUD goes down, and it can go down quickly. If it were due to interest rates, as you sugegst, then everyone would be investing in India and Egypt. They have a bout 8% and 9% cash rates compared to our 3%. And can you explain why our interest rates go down but the dollar goes up??? Didn't think so.
sushi,
Yes you pay back the nominal amount, but it is WORTH less than it was hence the part where it says the amount was worth 100% of GDP to later on being "only" worth 30% of GDP.
" This is typical bs and junk accounting.
The government still owes $16 trillion at the end of ten years.
It doesn't own "$13.9 trillion".
The numbnuts that are quoting this follishness are confusing the discounted time value of money with nominal amounts.
You pay back the nominal amounts not the 'discounted time value of money".
What a bunch of horse poo!"
Numbnuts and horse poo ROFL, you need read up a bit before posting and calling people names.
glug,
It seems everyone likes HHOgas's post which just backs up what you have been saying all along to "Sherlock" Buffet.
Seems "Sherlock" is just like the Lib's, she just doesn't get it. Don't hold your breath waiting for an apology though.
