NO WAY TO PAY AUSTRALIAN FOREIGN DEBT

The latest (December 2006) official figures put
Australia's net foreign debt for the first time at
more than half a trillion dollars ($522 billion).
Record sums are also going offshore to service
loans and pay dividends to foreign investors.

This debt has grown to more than half the size of
the Australian economy.
So, be warned that Australia is heading for a debt
driven recession.

Back in the mid-seventies, the amount of money
Australia owed was only about equivalent to 3 per
cent of GDP. Now in the latest set of figures
it's exceeded 50 per cent of GDP.

What that means is that we have a huge interest
payment-servicing burden on top of our exports. So
a large part of what we export is simply going to
pay back the money we've already borrowed from
overseas.

If you think that does not matter, I suggest you
do some research into this subject. You may get
an unpleasant shock!

.oOo.