{"id":34320,"date":"2012-12-14T00:52:44","date_gmt":"2012-12-14T05:52:44","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=34320"},"modified":"2012-12-14T00:52:44","modified_gmt":"2012-12-14T05:52:44","slug":"government-budget-surplus-or-deficit-why-its-a-no-win-situation","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/12\/14\/government-budget-surplus-or-deficit-why-its-a-no-win-situation\/","title":{"rendered":"Government Budget Surplus or Deficit? Why it\u2019s a No-Win Situation"},"content":{"rendered":"

By MoneyMorning.com.au<\/u><\/a> <\/p>\n

\n


\n ‘Economists believe the federal government can ditch its much promised budget surplus without damaging its triple-A credit rating.<\/p>\n

‘Treasury reportedly has advised the government to dump its commitment to a surplus, warning a slump in nominal economic growth poses a threat to revenue.’ – AAP
\n <\/em><\/p>\n<\/blockquote>\n

Don’t say we didn’t warn you.<\/p>\n

Get ready for Australian government debt<\/a> to take off…whoever wins next year’s federal election.<\/p>\n

<\/span>
\nIt already stands at $259 billion. That’s about 65% of Aussie government spending<\/a>. That’s right, 65%. Most people still think the Australian economy<\/strong> is different to every other economy.<\/p>\n

But look, don’t get us wrong. We’re not in favour of surpluses either. We look at government budget deficits and surpluses<\/strong> this way…<\/p>\n

A surplus<\/a> means the government is taxing too much.<\/p>\n

A deficit means the government is spending too much<\/a>.<\/p>\n

And a balanced budget means the government is doing both.<\/p>\n

As far as we’re concerned, the best government is no government<\/a>. But we’ll leave that theme for our twice weekly eletter, Pursuit of Happiness<\/a><\/em>.<\/p>\n

But it’s not just the rising debt levels to look out for. <\/p>\n

The economists in the AAP report clearly believe that government stokes the economy.<\/p>\n

But that’s not true.<\/p>\n

As we explained yesterday, it’s private enterprise<\/a> that makes the economy tick. Yet the more the government borrows and spends, the less money there is for private enterprise to invest in their businesses.<\/p>\n

Cheers,
\nKris<\/strong><\/p>\n

From the Port Phillip Publishing Library<\/strong><\/em><\/p>\n

Special Report: The Fuse is Lit<\/a> <\/p>\n

Daily Reckoning<\/em>:
\nWhy the Australian Dollar is Not as Strong as You Think<\/a><\/p>\n

Money Morning<\/em>:
\nCentral Bank Prints More Money – No One Cares<\/a><\/p>\n

Pursuit of Happiness<\/em>:
\nThe One Industry Where the State and Government Excels<\/a><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au ‘Economists believe the federal government can ditch its much promised budget surplus without damaging its triple-A credit rating. ‘Treasury reportedly has advised the government to dump its commitment to a surplus, warning a slump in nominal economic growth poses a threat to revenue.’ – AAP Don’t say we didn’t warn you. Get ready … <\/p>\n

Continue reading “Government Budget Surplus or Deficit? Why it\u2019s a No-Win Situation”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-34320","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/34320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/comments?post=34320"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/posts\/34320\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/media?parent=34320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/categories?post=34320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex-news\/wp-json\/wp\/v2\/tags?post=34320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}