the deficit is much like a home loan. it really doesn't matter...

the deficit is much like a home loan. it really doesn't matter how much the bank is willing to throw at you. what really matters is the level of risk associated with that loan.

risk comes down to debt/equity ratio. for example, my home loan represents about a quarter of overall equity. my sibling has a similar size loan but his debt/equity is far worst and should he loss his ability to pay, he has nothing to show for all the money he has poured into servicing just the interest.

national debt should be judged in the same light.

according to an economist on triple j last night, australia's deficit represents less than 20% of it national gross domestic output.....in comparision, the level of debt being taken on by the u.s. is more than 80%.

as for that mean-spirited, shallow former p.m. who couldn't see a good idea even when smacked him over the head....he happily took credit for the foundations laid by the previous government....but managed to twist whatever he touched and made it evil.