Thought this was interesting facts from Ross Greenwood (Money News)
Makes one feel a wee bit worried
Right now the Federal Government is at pains to tell everyone -
including us the mug-punters to the International Monetary Fund that it
will not exceed its own, self-imposed, borrowing limits. How much? $200
billion. And here's a worry. If you work in a bank's money market
operation; or if you are a politician; the millions turn into billions
and it rolls off the tip of the tongue a bit too easily.
But every dollar that is borrowed, some time, has to be repaid. By you,
by me and by the rest of the country.
Just after 5 o'clock tonight I did a bit of maths for Jason Morrison.
But it's so staggering its worth repeating now. First though ... here's
what Chairman Rudd has been saying about - what he calls - these
temporary borrowings. Remember those words ... temporary deficit .....
but the total Government debt could end up around $200 billion.
So here's a very basic calculation ... I used a home loan calculator to
work it out ... it's that simple.
$200 billion is $200,000 million. The current 10 year Government bond
rate is 4.67 per cent. I worked the loan out over a period of 20 years.
Now here's where it gets scary ... really scary.
The repayments on $200 billion come to more than one and a quarter
billion dollars - every month - for 20 years. It works out we - as
taxpayers - will be repaying $15.4 billion in interest and principal
every year ... $733 for every man woman and child - every year.
The total interest bill over the 20 years is - get this - $108 billion.
And remember, this is a Government that just 18 months ago had NO debt
..... NO debt. In fact it had enough money to create the Future Fund to
pay the future liabilities of public servants' superannuation ... and it
had enough to stick $20 billion into the Building Australia Fund last
year ....
Money News
Ross Greenwood Presenter
