Australia is bankrupt but nobody wants to talk about

The ‘Australian Economic Miracle’ of the last three decade has resulted in Bankruptcy. $2.4 Trillion dollars of debt loaded onto a workforce of 12 million workers.

The Banking Mafia forced Greece, with a similar population to Aus, into default over ~$US400 billion(130% of GDP). Australia has a debt to GDP ratio of +200%. Australia’s current account deficit is -$56 Billion, Greece’s is -$8 Million.
The difference between the two Countries is the Banking Mafia already owns everything of value in Australia and the Australian Workers are at optimum levels of Economic Slavery. The highest House Prices and Cost of Living coulple with declining Wage Levels make for a Bankers’ perfect economic model.
The parasite doesn’t destroy the host.

New Dollar

Australian Debt:- The Gorilla in the corner

The ‘Australian Economic Miracle’ of the last three decade has resulted in Bankruptcy. $2.4 Trillion dollars of debt loaded onto a workforce of 12 million workers. There is $1.3 Trillion in private debt. About $650 Billion in Corporate debt/bonds ect. This debt clock has gone up from $430 to $460 in 2 Months. This is the Australian Government Debt Clock $450 Billion The Banking Mafia forced Greece, with a similar population to Aus, into default over ~$US400 billion(130% of GDP). Australia has a debt to GDP ratio of +200%. Australia’s current account deficit is -$56 Billion, Greece’s is -$8 Million. The difference between the two Countries is the Banking Mafia already owns everything of value in Australia and the Australian Workers are at optimum levels of Economic Slavery. The highest House Prices and Cost of Living coulple with declining Wage Levels make for a Bankers’ perfect economic model. The parasite doesn’t destroy the host. In Greece the Banking Mafia now has some nice Private Islands and Infrastructure. The endless Greel Bailout is money created by the Banking Mafia to pay the interest on the loans which should have been declared Toxic. If Greece was allowed to go Bankrupt it would have triggered $US3 trillion CDO defaults. Australia can never repay the $2.4 Trillion debt because the politicians surrendered the creation of the $AUD to the Bank of International Settlements. The only way to pay the interest is to borrow more Wall St funny money. If the Banking Mafia refuse to lend the ‘Interest’ it then becomes ‘Bailout’ and the interest rate goes through the roof. If the Australian Government tried to create our own $AUD, Wall St. would reign financial armagedeon on our cities. The great deception in Australia is that the Politicians have any control on the Economy. Todays Politicians know that Wall St. can crash the Australian economy overnight by raising interest by 1%. Politicians are shackled by the misdeeds of their predecessors. With the debt as leverage what Wall St wants Wall St. gets and Wall St. doesn’t want politicians taxing corporate profits, messing with their banks, lowering housing prices, or getting between them and and any other pools of profit they can find.

A Sad and Sorry Tale of the Bully and the Nerd

The bully is Paul Keating, who left school at 14 and couldn’t read very well. . He never had a job outside the Labor Party. Insulting people was his only politic skill.

The nerd is John Howard, the nerd who got bullied at school and vowed to get revenge one day. A sly and cunning man. These men put politics above policy in their desire for power. Both men gave the markets everything they wanted to achieve and stay in power. Keating removed financial regulations, including the ban on foreign financial institutions operating in Australia. Within eight months Keating had floated the Australian dollar on the foreign exchange market, divesting the government’s power to control Australia’s currency. He handed the government’s power to set interest rates to the Reserve Bank which is now controlled by the Corporations. The floating of the dollar and the cheap money from the financial deregulation began to fuel inflation. Keating responded by cutting government spending and ratcheting up interest rates, which hit a high of 18 per cent in 1989 The impact was drastic. Between July 1990 and February 1993, 3.9 per cent of Australian workers were sacked. Australia’s unemployment rate reached 10 per cent in September 1991. It peaked at a post-war high of 11.2 per cent in December 1992 and was still above 10 per cent in July 1994. Many of the 920,000 people thrown onto the scrap-heap in the “recession we had to have” would never work again. It took 18 years before unemployment would drop back to pre-1990 levels. Hawke’s Labour Accord was also driving down the wages share of GDP from 61.9 to 55.1 per cent, while the profit share went from 18.9 per cent in 1982 to 23.5 per cent in 1989. By the 1990s Australia had one of the worst levels of income inequality in the Western world. Keating spent his final years in office selling off profit producing assets including the Aerospace Technologies of Australia, Australian Industry Development Corporation, AUSSAT, Australian Airlines, Commonwealth Serum Laboratories, the Commonwealth Bank, Moomba-Sydney Pipeline, Qantas and the Snowy Mountains Engineering Corporation.(above from Jean Parker at solidarity.net.au) Keating sold a third of the Commonwealth Bank for $1.5 Billion, Howard sold the remaining two thirds for $8 Billion. Its now valued over $240 Billion and has paid about the same in dividends. No wonder the Murdoch Media remember Keating and Howard as economic geniuses. When Keating became too toxic John Howard came in to finish the ‘Markets’ agenda. Howard sold Airports, the National Rail Corporation, Dasfleet, Telstra, the remaining share of the Commonwealth Bank and many other valuable enterprises. Had Australia retained some or all of these cash-yielding assets, current angst over debt may well have been allayed. Then we have the economic genius Captain Smirk Costello. In 1997 JP Morgan was in trouble with a lack of physical Gold to fill its COMEX orders. Gordon Brown-Great Britain, Captain Smirk-Australia and the Swiss Central Bank all announced they were dumping half their Gold Reserves at the same time. This pushed the world gold price down to an 11-year low. The RBA got $2.4bn for 167 tonnes that was sold via a single broker engaged without a tender. I’ll leave you to guess which broker. By 2001 that gold was worth about $7.4bn. Ric Battellino at the RBA organised the sale and insists to this day it was a good deal. Ric also kept insisting there wasn’t a housing bubble and kept interest rates low so the Banks could keep blowing the non-existant bubble up. Then the economic genius started to gamble on the Forex market against the very people who controlled the Forex Rates and got swindled out of $4.7 Billion. Costello is now in charge of the ‘Future Fund’. What could possibly go wrong. When Howard lied to get Australia involved in the slaugher that is still going on in Iraq he attacked our 4th largest export market worth $14 Billion a year. After the invasion the US took over that market. These men still puts their hands out to be fed from the public purse at $500 thousand a year plus expenses.

What Keating and Howard Achieved

$1.2 Trillion dollars in public foreign of debt which Keating’s ‘Four Pillars’ of fractional reserve banking has leveraged to astonomical levels. Keating’s ‘Four Pillars’ are generating enough profits off 12 Million workers to be among the top ten Global Banks. That’s the economic miracle Keating, Howard and the Markets were talking about. It is no coincidence that banks’ profits match the growth in national debt Steve Mayne: The asset stripping of our infrastructure The privatizations have lead to the worlds highest cost of living. The loss of income to treasury is $10s Billions PA. The Singapore Government now owns more of Australia’s infrastructure than the Australian Government and its returning a significant amount of profit to Singapore. The destruction of our industrial base with the loss of the skills base and jobs. The removal of Tariffs destroyed a balanced economy. Even if workers here were paid a dollar a day we still can’t compete because of high infrastructure costs and bureaucratic overheads. No returns to the taxpayers from the resource boom. WA is almost bankrupt. How the hell did that happen? Stupid wars creating terrorism and the security state. John Howard lied to start the ‘War on Muslims’. If the Chilcott enquiry brings down Tony Blair, Howard should be next, he has been referred to the Hague. Trade deals like the TPP where global corporations profit and the workers loose everytime when Jobs are shifted to Asia. Be very afraid of Turnbull from Goldman and his next project TiSA the last step to Corporate control. The Australian Reserve Bank can’t create money because our politicians placed our currency under the control of a private bank

Bank of International Settlements

Under BIS rules the only entities who can create global reserve currencies are the privately owned Central Banks. The Euro, Dollar, Yen, Pound and the IMF has SDRs. The Chinese Renminbi was added to the list in 2015. The only money the Reserve Bank creates is the $10 Billion in physical currency which is all used for ‘discrecionary’ spending. When the GST was introduced currency in circulation went from $5 Billion to $10 Billion and the Reserve Banks states the extra $5 Billion is the black market economy. I pay with cash🙂 Australian Reserve Bank base interest rate is a charade the Brother Banks play along with. They don’t always play along which is embarassing for the RBA. If the Australian Government tried to create our own $AUD, Wall St. would reign financial armagedeon on our cities.

What the debt means for Australia

People need to realise that the party is over. The debt is an unbearable strain on the economy. It’s also an inconvenient truth the planet is being poisoned and depleted by ‘consumption’. There are two types of money in the economy, required and discretionary. All the ‘required’ spending goes for shelter/banks, food/supermarkets, fuel/power, etc and is all controlled by Global Corporations. After costs, the untaxed profits head overseas. After the ‘required’ spending on living the money that is left over is ‘discretionary’ spending and that’s what people spend on the services in the local economy. The volume of this money has a magnifing effect as it keeps circulating locally. Real wages are dropping by 1.2% a year and combined with the highest cost of living on the planet the loss of ‘discretionary’ spending is slowing the economy and the only way to stimulate growth is to borrow more Wall St. money and that isn’t going to work. The 25 years of growth have been fueled by debt. On the $1.2 trillion private debt, over $40 Billion interest payment a year now goes to Wall St. Another way of putting it is that all the credit cards are maxed out. Its time to stop calling on the Government to fix everything because their solution to everything is always creating more profit centres for the ‘Market ». And central planning always makes things worse. The politicians have got enough to worry about dealing with the mistakes of the past. It’s time for people to start rebuilding local economies as the only way foward. People need to stop buying junk they don’t need with money they haven’t got. We need to understand continual ‘growth’ is physically impossible. 2% growth is a parabolic curve not a straight line. The planet has finite resources and the 2% growth curve means earlier collapse of civilization as we know it.

The first bit of good news is that Wall St. is a parasite and a parasite doesn’t destroy the host it just weakens it. Secondly, we are not alone the rest of the World is with us.

This list shows the debt owed to trans-national entities. CIA World Factbook List of External Debt by Country The most telling thing from this list is that the richer a country the more they owe the private banks who create currency as debt.

This list shows how much we get for our mineral/food exports in terms of the cost of import. CIA World Factbook List of Current Account Balances by Country

This list shows how much reserve currency we have available to balance our trans-national debts. CIA World Factbook List of Foreign Reserves and Gold by Country The Global Banking Cartel has created $200 Trillion in global debt

There is only $200 Trillion in total global assets. An article at Zero Hedge showing there is more bankster debt than assets The money to pay the interest doesn’t exist. The planet is locked into this economic debt spiral because the economics theories and experts payed for by the banks have convinced us the Sovereign Nations can’t create their own currency. Classical/Neo-Liberal economics is based on the absurd ‘Trickle Down’ effect and this shows how well that has worked. Richest 1% of people own nearly half of global wealth, says report

The Bankers are a parasite on humanity who have convinced politicians that they are ‘too big to fail ».That’s bullshit. If the Banks go down so does the $200 Trillion in debt. Bankers want people to believe that their money is stored as cash in a vault and if they go down the tooth fairy will come and steal it all. Your money is a set of computer records. Governments can take those records, identify real money deposited in bank accounts and superfunds and reissue Government created money into new accounts in a National bank. When Iceland got hit by the GFC they refused to repay bank debt to Wall St. locked up the bankers and had debt forgiveness on all overpriced housing. They now have a thriving economy and Europeans are migration there in numbers.The correction is going to be a global one but it doesn’t have to take down real local economies. In the 2008 Global Financial Crisis the private central banks invented a thing called ‘Quantitative Easing’ which translates into printing free money. They printed $15 Trillion dollars and distributed it to the global Banks. Because they got away with it they are still doing it. They are using this money to buy up real assets like farmland. Australian Banks got $50 Billion from TARP which they spooked Wayne Swan into borrowing which restarted the deficit.

The Answer

A valid case was made back then for the Quantitative Easing to go to ‘Main St’ instead of Wall St. to retire debt and stimulate local economies. It would have worked then and it would still work now, but it ain’t gonna happen. Now Wall St. is 30% richer than it was back then and Global debt has grown by 30%.

A debt Jubilee.

Identify debts created created on a keyboard by a Banker as ‘toxic’ debt and cancel it. That would fix the problem of poverty in Africa, dating back to August 15 1971.

Steven Keen