GLOBAL SUB-PRIME CRISIS

BANKILEAKS

Click on our Secret Library of Evidence ------>

    BANKILEAKS Secret Library

Loan Application Forms (LAF's)  

    Bank Emails to Brokers  

    Then Click on 'VIEW NOTEBOOK'

Join us on facebook
 

facebook3           facebook2 

BFCSA
MORTGAGE
DISTRESS SOS

What BFCSA Does...

BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

Visitors

Articles View Hits
525201

Whistleblowers' Corner!

To all mortgage brokers, BDMs and loan approval officers! 
Pls Call Denise: 0401 642 344 

"Confidentiality is assured."

Cartoon Corner

Lighten your load today and "Laugh all the way to the bank!"

Denise Brailey

Led by award-winning consumer advocate Denise Brailey, BFCSA (Inc) are a group of people who are concerned about the appalling growth of Loan Fraud around the world. BFCSA (Inc) is a not for profit organisation in the spirit of global community concern and justice.

Click on the Cluster Map.

  • Home
    Home This is where you can find all the blog posts throughout the site.
  • Categories
    Categories Displays a list of categories from this blog.
  • Bloggers
    Bloggers Search for your favorite blogger from this site.
  • Login
    Login Login form

BFCSA: Tony and Joe's DEBT Disaster - no we cannot afford a war. We have to fix the Monster Banks first

Posted by on in Federal Treasury
  • Font size: Larger Smaller
  • Hits: 1416
  • 0 Comments
  • Print

That's not a debt disaster  -  This IS a debt disaster:  Joe and Tony's big con

11 October 2014

Alan Austin

http://www.independentaustralia.net/politics/politics-display/thats-not-a-debt-disaster--this-is-a-debt-disaster-joe--tonys-big-con,6984

Alan Austin presents another exclusive report the mainstream media will not touch — Australia’s rapidly escalating borrowings since Abbott and Hockey came to office promising to end ‘Labor’s debt disaster’.

AUSTRALIA’S DEBT since Joe Hockey took charge of the nation’s finances has increased dramatically.  The rate of expansion shows no signs of slowing.  Monthly finance figures for July and August were quietly released yesterday — late on Friday night, several weeks late, after seemingly being sat on by Cormann for at least a week*.  They show the Abbott Government has achieved precisely the opposite of its solemn pre-election undertaking to bring about   ‘… a reduction of $30 billion in net debt.’

In July and August alone – two months for which it is impossible for PM Tony Abbott to blame Labor for any mismanagement – the debt expanded from $202.46 to $217.55 billion.  That’s more than $15 billion, a rate of increase above 3.6% per month. If continued, that rate would double the debt at the last election by next July.

But let’s start at the beginning — with Labor’s borrowings, which the Coalition screamed from the rooftops was ‘skyrocketing’ and promised countless times to reduce.  Back when monthly reports from the Finance Minister were presented every month and on time, the final report prepared for the Rudd Government period, for 31 August 2013, showed the forecast end of year net debt for 2013-14 at $178.10 billion.  We can take that as the level for which Labor must accept responsibility. It sounds pretty high, but is only a small percentage of the nation’s gross income – just 11.3% of GDP – and extremely low when compared with other developed countries.

As explained here two weeks ago, the next monthly report, September 2013 ‒ prepared after Hockey had become treasurer and Mathias Cormann finance minister ‒ also showed projected year-end debt steady at $178.10 billion. As did October’s and November’s.  In December, however, after Hockey and Cormann had abandoned Labor’s budget measures by cutting taxes and spending recklessly on ministerial travel, royal commissions, a Reserve Bank advance and other needless fripperies, the debt projection rose suddenly to $191.52 billion.

The monthly reports in January, February, March and April 2014 maintained this year-end projection. Then, in May, it jumped again to $197.85 billion.  That report, released four months ago, was the last until last night.  Two weeks ago the Final Budget Outcome revealed the actual debt level reached by 30 June 2014. This was $202.46 billion, more than $24 billion – or 13.7% – higher than forecast had the previous Government continued in power.

The data released yesterday shows that in July, debt increased from $202.46 billion to $208.15 billion. It jumped again in August to $217.55 billion. So the total increase above the level Labor left last year is now $39.45 billion ($217.55 less $178.10) — up an extraordinary 22.1%.  That is a rate of 3.66% per month just since June — or an annual compound rate of 54%.  The monthly figures released last night also reveal the targeted level of debt Abbott, Hockey and Mathias have set themselves for the end of the current financial year.

Is this in line with ‘a reduction of $30 billion’ as promised before the last election? Or a smaller reduction? Or larger?  In fact, it is a huge increase. The target is set at $226,388 — a boost in borrowings for the year of $23.9 billion, or 11.8%.  And of that projected $23.9 billion increase, they have already borrowed more than $15 billion — in just the first two months.  Last night’s release also shows the projected total interest bill for the full year 2013-14 at $14.7 billion [Note 3, page 6].  That is up from the final for the previous year of $10.8 billion.

Still ringing in our ears are the words of Mr Abbott at an education conference last year:   “We’re currently paying interest on it [Government debt] at the rate of over $7 billion a year — that’s almost as much as the national government’s entire higher education budget. We’re racking up some $140 million a week in interest payments alone ...”   That was then — way back in 2013.  Now, 13 months after Abbott gained office, the interest bill is $283 million a week.

Are there any signs this situation is likely to turn around in the near future?  No. None whatsoever.  Revenue from wages is below expectations and commodity prices are falling — both of which will reduce tax revenue.  The Government has failed to get its budget through the Senate and remains unable – fortunately for the nation’s disadvantaged – to cut the outlays on pensions and benefits it wants to slash.......

 

read more    http://www.independentaustralia.net/politics/politics-display/thats-not-a-debt-disaster--this-is-a-debt-disaster-joe--tonys-big-con,6984

What do YOU say is the problem?  Try $283 million a week?

Last modified on
Rate this blog entry:

Comments