How are we (Australia) going to pay for this COVID-19 spending?

[beersandwich]

there is only one real way for the globe to pay back this debt - inflation.
No onecan afford any other option.

 

[amaroo]

So, governments put off buying military replacements because they want the money (which will simply disappear).

China succeeds in removing future capabilities, whilst seeing exactly what effect a ”relatively” benign virus has upon the world.

Quietly develops a less benign form. Immunises their troops (and part of population) against it. Co-ordinated release against the western world, using tourists as the vector.

Manages to lock down most of the world.

Makes its military move.

One can already see the impact on the USN

US Navy to drop nearly 3,000 sailors from coronavirus-infected aircraft carrier in Guam

Nearly 3,000 sailors aboard a US Navy aircraft carrier will be brought onto the tiny Pacific island of Guam, which has just 250 hospital beds, as they struggle to quarantine crew members in the face of a coronavirus outbreak.

www.abc.net.au

 

[scaredeycat]

there is only one real way for the globe to pay back this debt - inflation.
No onecan afford any other option.

My concern is the possibility of hyperinflation. At present cash is king, but that can quickly change overnight...

 

[scaredeycat]

The danger with the current situation, where the government is spending like there is no tomorrow, is that come election time it won't have the intestinal fortitude to raise tax to fund it. Politicians may be tempted to print money instead. Triggering inflation, destroying savings.
I would suggest that it would be in the best interests of the majority of Australians to tax wealth, rather than increasing income taxes. But vested interests, who own political parties, wouldn't dream of letting that happen.
Maybe there will be no tomorrow .

 

[amaroo]

For the ones that haven't already done it ..... start making plans to structure your ADI strategy. There are around 100 to take advantage of.

 

[tgh]

China seizes Covid-19 advantage in South China Sea

China seizes Covid-19 advantage in South China Sea - Asia Times

MANILA - With the Covid-19 pandemic mostly contained in China and now wreaking havoc on the United States, security analysts are closely watching

asiatimes.com

 

[TheRealTMA]

The danger with the current situation, where the government is spending like there is no tomorrow, is that come election time it won't have the intestinal fortitude to raise tax to fund it. Politicians may be tempted to print money instead. Triggering inflation, destroying savings.
I would suggest that it would be in the best interests of the majority of Australians to tax wealth, rather than increasing income taxes. But vested interests, who own political parties, wouldn't dream of letting that happen.
Maybe there will be no tomorrow .

There’s never been a better time in history for government to borrow. Rate is somewhere near .25 - .5. Plus government bonds really can be bought by the reserve bank at effectively no cost.

Governments budgets are nothing like house hold budgets, despite what Margaret Thatcher and our LNP parties have been whinging for the last 13 years.

 

[CaptJCool]

I’m fine with inflation, the more the better, the higher the superannuation rises!

 

[drron]

And the less you can buy with it.

 

[amaroo]

There’s never been a better time in history for government to borrow. Rate is somewhere near .25 - .5. Plus government bonds really can be bought by the reserve bank at effectively no cost.

Governments budgets are nothing like house hold budgets, despite what Margaret Thatcher and our LNP parties have been whinging for the last 13 years.

You just can't help yourself ... like an addict

Post automatically merged: Apr 3, 2020

I’m fine with inflation, the more the better, the higher the superannuation rises!

Unless there is a run ... highly likely for some funds.

 

[ethernet]

I think we'll be revisiting a few things
-negative gearing
-franking credits
-GST rates

Capital Gains Discount. They better do it like yesterday.
A poll Tax (UK)

Remember it was born in the 10%? interest days. But 0.5% gets 50%. That ratio has to change. Also note debt swap instruments that allowed complex tax dodging, that even after MAL, is still allowed.

 

[burmans]

Unless there is a run ... highly likely for some funds.

A run would lead to deflation of asset values, not inflation!

 

[amaroo]

A run would lead to deflation of asset values, not inflation!

Did I post anything about inflation

 

[Kendall Roy]

Time to stir the pot a little:

They're going to pay for it by pumping the immigration program to levels never seen before.

Unfortunately said program has been nothing but detrimental for the majority of Aussies over the past 10-15 years. It's been about quantity over quality, purely in the interests of keeping the housing bubble going!

 

[stoney]

The danger with the current situation, where the government is spending like there is no tomorrow, is that come election time it won't have the intestinal fortitude to raise tax to fund it. Politicians may be tempted to print money instead. Triggering inflation, destroying savings.
I would suggest that it would be in the best interests of the majority of Australians to tax wealth, rather than increasing income taxes. But vested interests, who own political parties, wouldn't dream of letting that happen.
Maybe there will be no tomorrow .

I wonder! As we know the US FED have been printing money (QE) since the GFC and to my surprise there has been no sign of the inflation which is supposed to be the result. Why? It keeps the books in balance but just raises the numbers. This is simplistic but I am not an economist. They never agree anyway.

 

[Cossie]

Fix the tax system, abolish family trusts, reduce immigration. Increase the GST and income tax.

 

[CaptJCool]

Time to stir the pot a little:

They're going to pay for it by pumping the immigration program to levels never seen before.

Unfortunately said program has been nothing but detrimental for the majority of Aussies over the past 10-15 years. It's been about quantity over quality, purely in the interests of keeping the housing bubble going!

As long as you as a migrant are willing to fend for yourself

Ministers for the of Home Affairs Website

Minister for Home Affairs, Minister for Immigration, Citizenship and Multicultural Affairs, Minister for Emergency Management.

minister.homeaffairs.gov.au

 

[pauly7]

Fix the tax system, abolish family trusts, reduce immigration. Increase the GST and income tax.

Can pretty much guarantee your third point will not be a part of any plan

I’m firming my personal bet on:

- Permanent increase in base GST eg 10->15%
- On top of this a temporary increase in GST eg new base of 15% plus extra 5% for X years
- Medicare style levy surcharge for all taxpayers eg +2%, potentially with a +1% extra on high income earners

 

[Pushka]

As long as you as a migrant are willing to fend for yourself

Ministers for the of Home Affairs Website

Minister for Home Affairs, Minister for Immigration, Citizenship and Multicultural Affairs, Minister for Emergency Management.

minister.homeaffairs.gov.au

That's the case with most countries isn't it? I can't get a visa for UK unless I can prove I can fund myself.

 

[stoney]

Can pretty much guarantee your third point will not be a part of any plan

I’m firming my personal bet on:

- Permanent increase in base GST eg 10->15%
- On top of this a temporary increase in GST eg new base of 15% plus extra 5% for X years
- Medicare style levy surcharge for all taxpayers eg +2%, potentially with a +1% extra on high income earners

The GST revenue goes back to the states so the fed would not gain directly.