Thankyou for update .. concerns for Victoria and limited expertise to intelligently manage debt, may act negatively on National strategy
Thanks Shane - history says there's decades of financial repression ahead; essentially fleecing savers because governments are too cowardly to pay off the debt in the moral way. Low interest rates cause more problems then they fix, but we don't have an independent central bank so they are unlikely to do the right things and set a fair return on capital. They'll continue to lie about a glut of excessive savings when there is a lack of savings and a glut of QE.
It is interesting after WWII we solved the debt problem in two ways 1) increase in population by a baby boom and large immigration of young people and 2) heavy protectionists policy and development of a manufacturing industry. Guess what, it worked (until the oil price spike shocks of the early 1970's precipitated higher inflation). If it worked once, why not go back to similar policies? We now know they work.
Great summary. Every dollar of government debt is a dollar invested into the economy, and therefore a prudent financial decision at this time. Bonds yields are so favorable to the government that they would be foolish to defer any spending for which there's labor capacity.