“Actually, I learnt a lot from Kevin Rudd. Renewal starts with renewing the Liberals as a non-Abbott party. The first task of my realm shall be to register my new party logo with the Australian Electoral Commission.
“Do you like my gold Australia and silvertail crest? Innovative I say.”
“Labor’s debt can wait. My subjects will understand.”
Hide and avoid massive government debt and budget deficits and think of Brazil.
Brazilian officials are accustomed to shrugging off the country’s debt levels by comparing them with those of much more heavily indebted Europe. Under corrupt President Dilma Rousseff, Brazil’s sovereign rating in February 2016 was cut to junk by Moody’s Investors Service.
Australia’s massive government debt caused by Rudd-Gillard-Rudd Labor (2007-2013) has been extended by the Abbott Liberal Government and the now Turnbull Government recklessly avoids frugal governance. Morrison’s 2016 Budget extends Labor’s deficit.
April 14, 2016: Global rating agency Moody’s has warned Treasurer Scott Morrison that spending cuts alone will not be enough to safeguard Australia’s AAA credit rating.
In its latest note on the credit implications of current events, Moody’s cited last Friday’s announcement by Mr Morrison that his focus would be on spending cuts, not tax increases, to repair the budget deficit. However, Moody’s analysts Marie Diron and Matthew Circosta have warned spending cuts are unlikely to get Australia’s budget back in the black over the next five years.
“Given previous difficulties in reducing welfare benefits, actual spending cuts may be modest,” the analysts cautioned in their note. Moreover, Mr Morrison’s announcement excluded measures to raise revenues. Without such measures, limited spending cuts are unlikely to meaningfully advance the Federal Government’s aim of balanced finances by the fiscal year ending June 2021 and Government debt will likely continue to climb, a credit negative for Australia.”
While not putting Australia on a negative credit rating watch — the immediate warning for a potential downgrade — the note is a shot across the Government’s bows by Moody’s ahead of its May 3 budget.
Turnbull risks appeasing the budget-denying populous Left, instead of performing the Liberals’ 2013 electoral mandate to pay down Labor’s extortionate public debt.
The Left do not believe in debt. The Left advocates utopian Gonski, NDIS, the brain drain, demise of the Arts. Appease the Left and risk losing Australia’s credit rating.