In the first time ever to brief Cabinet, the governor of the Reserve Bank of Australia and the new head of Treasury have delivered a dire warning- ” if the government’s spending cuts, being blocked by Labor and the Senate, fail to get passed, then the budget is at risk of never getting back to surplus.”
They told the Cabinet that the government was now borrowing almost $110 million a day to pay its bills due to interest payments on debt and the growing Budget deficit, which the Coalition inherited from the previous Labor government. They also warned about revised global economic growth figures.
So there is obviously some real concern in Australia, but here in NZ, where debt levels are similar in proportion to the size of our country, there appears to be little concern. Why are we not hearing about NZ’s need to adjust debt levels and spending in view of revised estimates on the global economy? Its all peachy according to Bill English, John Key, the MSM, and National’s blogging friends.