The Truth about Debt and Deficit

6 11 2013

The Australian Independent Media Network

A guest post from John Kelly, putting the complexity of debt and deficit into simple English and exposing the hypocrisy of Joe Hockey’s references to Labor’s economic management.

Why Joe Hockey will rue the Howard Government’s fiscal mis-management.

Have you ever thought what would happen if everyone in Australia went to their bank and asked to withdraw all their money, all on the same day? Ask Joe Hockey. He will tell you the crisis such an event would kick start doesn’t bear thinking about. He’s right about that. The first customers to arrive would be successful but somewhere down the queue the rest would be told the money had run out. Surprised? No, and you shouldn’t be, but that is just the beginning. Have you ever asked why the banks could not pay out their customers’ deposits? No prizes here; the answer is relatively simple: they lend most of…

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2 responses

8 11 2013
Mad Max

Just watch american blackout 2013 national geographic.
It had me on the edge of my seat. I could not belive it. I use think I should help anyone when this kind of thing would happen now I am not so sure.

8 11 2013

This only makes sense if you accept the Chicago school’s rhetoric wrt economics. There are alternatives that make infinitely more sense. Hint: look for Bill Mitchell in Australia or Randy Wray in the US.

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