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Liberty Clip: December 1, 2012

15 comments

Written by Sinclair Davidson

December 1st, 2012 at 12:00 am

Posted in Liberty Clip

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15 Responses to 'Liberty Clip: December 1, 2012'

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  1. Absolute rubbish. Government spending ends up in private sector bank accounts.

    sdfc

    1 Dec 12 at 12:04 am

  2. Government spending ends up in private sector bank accounts.

    Absolute rubbish.

    Rabz

    1 Dec 12 at 12:08 am

  3. Where does it go then Rabz?

    sdfc

    1 Dec 12 at 12:10 am

  4. Hopefully* back to the individuals it was stolen from, but invariably not.

    *In a just world

    Rabz

    1 Dec 12 at 12:12 am

  5. But the taxes levied come therefrom also. Unless the money is borrowed, when the same applies, but with the cost of finance thrown in.

    In short, in the simplified “private bank accounts” view, what about government spending broadly speaking, could not be achieved more efficiently by taxing less?

    wreckage

    1 Dec 12 at 12:21 am

  6. Generally speaking the taxes are on the productive, and the spending on the politically fashionable.

    wreckage

    1 Dec 12 at 12:22 am

  7. Generally speaking the taxes are on the productive, and the spending on the politically fashionable.

    Heresy./sarc off/

    Rabz

    1 Dec 12 at 12:24 am

  8. The public thinks mining caused the overvaluation of the Australian dollar. It does not understand that it has been caused by the Australian government debt binge (from zero in 2006-07 to $256 billion now), which has required massive foreign capital investment in government bonds. The Gillard vandals have therefore been responsible for the destruction of Australian manufacturing employment. While Shane Wand strides around the OECD accepting accolades for economic management, he has actually been one of the prime destroyers of Australian economic value by artificially inflating the currency to finance out-of-control government spending (up 72% since 06-07).

    Tom

    1 Dec 12 at 12:39 am

  9. Tommy,

    Your stating of the bleeding obvious could cause ructions amongst teh chatterati.

    They have little time for heretics…

    Rabz

    1 Dec 12 at 12:41 am

  10. But if they stop borrowing, won’t it be…

    … dramatic pause …

    DEFLATIONARY????

    We must borrow more, and at an ever increasing rate, forever!

    wreckage

    1 Dec 12 at 12:46 am

  11. We must borrow more, and at an ever increasing rate, forever!

    This, times a Trillion Gazillion.

    Rabz

    1 Dec 12 at 12:49 am

  12. Absolute rubbish. Government spending ends up in private sector bank accounts.

    Where the money spent by governments ends up is irrelevent.

    The issue is that when governments take money off people, the people don’t get to decide how it is spent, the government does. This means, instead of people getting to spend their money on what is important to them, they have to put up with what governments deem as being important to them.

    In the clip, Mr Davies talks about diverting money from the ‘productive’ to the ‘unproductive’ sectors and about governemnts ‘wasting’ money.

    This language misses the main point. Even if the government sector was as ‘productive’ as the private sector and didn’t ‘waste’ any money, government spending will still cause spending to be diverted away from what the people believe to be most important to what the government believes to be most important.

    Small government advocates need to change their rethoric away from ‘waste’ and ‘unproductive’ government spending and focus more on government’s imposing their will on the people and removing the means for people to achieve what is important to them.

    johno

    1 Dec 12 at 9:20 am

  13. We need to stop these totally inept semi educated pollies from spending OUR money on things which will get them votes from the recipients,thus keeping them in the best job they have ever had ! You need no qualifications just be a suckhole to the Pardee Godfathers! i mean what in the name of God qualifies these clowns to be Ministers? The Trasurer has a BA from a Tech School,the Foreign Affairs Clown was boss of a bunch of Crooks ( admitedly this would help dealing with the “untidy Nayshuns” The other mob are only marginally better.Politics in Australia needs an Emetic,give the Power to The People and put the ambitious clowns on work for the dole!

    Borisgodunov

    1 Dec 12 at 3:16 pm

  14. The comment made by the speaker that if the government sells bonds that the money it raises is not available for the private sector is quite plainly incorrect.

    If a non-bank entity purchases a bond it is making a voluntary decision to swap one asset for another. When a commercial bank purchases a bond it creates new money to purchase that bond. When that money is spent it ends up in private sector bank accounts.

    In other words when the government runs a budget deficit it is running a cash deficit with the private sector.

    sdfc

    1 Dec 12 at 5:39 pm

  15. When a commercial bank purchases a bond it creates new money to purchase that bond.

    How?

    wreckage

    1 Dec 12 at 9:19 pm

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