Got me a good one with the "please tell me enoonmai that you dont breed".
Aside from the accounting treatment of cash held by the Govt. pointed out by cgt2009 which discredits your argument, this is why I posted my previous point:
- Aust Federal Government is the sole issuer of Australian currency. It can issue currency as it sees fit. Therefore it is not financially constrained (i.e. it can fund limitless expenses). Therefore looking at its "cash at bank" is a pointless, misleading exercise.
Sure, there may be a negative impact on the economy if the Govt did inject a huge quantity of funds into the economy but that is a different agrument altogether.
The point is that a deficit or surplus only has an impact on the GDP of year it was incurred.
