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27/05/19
19:50
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Originally posted by JandJ:
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I wish you all luck in your ventures. I personally have no qualms about Australia's economic future - and fully endorse ScoMo's plans for tax cuts and a balanced budget. The crap written by Morgan Stanley and other overseas 'past bail-outs', and referred to on this thread, is just that, crap! BUT - it is necessary to acknowledge that high net personal and government debt in Australia has to be serviced overseas. This is done by the Big 4 Banks borrowing, and by overseas corporate and private investment in Australian assets. Of course that has a downside, and most would rather it was not necessary, however, on the other hand there is the investment by Australian individuals and corporations overseas. It seems to me that the performance of our corporations is sufficient for Australia to hold its own comfortably - as Hot Coppers let's consider BHP and our other big diversified multi-national miners, who seem to outperform on the international scene. Australia's ability to maintain a positive balance of payments, thanks largely to resources exports (Iron, Coal, Gold, Other) is the key to our prosperity. Our net positive earnings is what maintains lenders and investors confidence. Meanwhile the proposed tax cuts to 'The Big End Of Town' (as well as the ordinary Aussie Battlers) will add to the funds available for debt retirement and investment, importantly by indivudals who have shown, by the very fact that they have a bob, to have the will and the means to invest wisely. Further long term prosperity will follow from excellence in research, and the acquisition of skills in developing marketable products based on that research - I particularly think about battery technology in this context, others may think medical and health as areas of outstanding growth potential. The odds of a short sharp recession are higher today, but I would not bet on them, and if it does come then it may have the beneficial affect of causing a rethink in expectations of citizens of The Lucky Country.
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“Australia's ability to maintain a positive balance of payments, thanks largely to resources exports (Iron, Coal, Gold, Other) is the key to our prosperity. Our net positive earnings is what maintains lenders and investors confidence.” Do we have a positive BoP?