The high level of youth unemployment (20% of those aged 16 to 24 are out of work), the inequality of incomes and wealth and the effect of local authority spending cuts on youth services are all factors that might have contributed....The much-heralded cuts have only just started: public spending is still higher than it was a year ago. There has to be more doubt, this morning, about the ability of the government to see through five years of austerity and thus to justify the low bond yields on long-term debt...Big Business identifies the debt, any debt, as a barrier to confidence
Future Fund chairman David Murray yesterday called on the government to significantly cut its debt in order to restore market confidence.Note that David Murray did not ask the private sector to reduce their debt. Of course a government that issues its own currency can service its debt. Bill Mitchell accessed data from the US Treasury on foreign ownership, ownership of securities and consolidated balance sheet and found that a significant proportion of the debt is issued by and held by the Govt!
''We are a highly indebted nation overall if you add up all government debt in Australia plus private sector debt,''
The story that China "owns" the US appears to be an exaggeration.
Are the debt levels sustainable? History shows that they are
But never let the facts get in the way of a good story.
As a result of the media deluge confusion reigns and consumer confidence plunges
