Thursday, 15 March 2012

Another Word on Peter Costello

In analysing the Australian economy, does former Treasurer Peter Costello really think that:
  • "If the journey [towards higher debt] keeps continuing at the rate in the years ahead that it did in the last three or four years it won't be too long before we start experiencing European-type problems.”

Or is it that in pretending Australia has “a mountain of debt” Mr Costello is simply playing politics?

It is fair enough if Mr Costello is simply playing politics and trying to make a few cheap points, however misplaced they were.  But it should be seen for what it is.  It is very difficult, if not impossible, to find anyone outside the Coalition Parties who have such a view on Australia.  If anyone reading this knows of any analyst anywhere in the world who shares Mr Costello’s view that Australia is close to experiencing European-type debt problems, please let me know.

Which brings me to Mr Costello’s appearance on 730 last night. 

Mr Costello suggests the search for a new Chairperson for the Future Fund was “a shemozzle” that hurt the reputation of the Future Fund, whatever that means.    

Does Mr Costello really think this or is he again just playing politics as he did with his fairies-in-the-bottom-of-the-garden analysis of Australia’s debt position?  Or is there an element of sour grapes from him that he was not chosen for the Future Fund role?


  1. While I agree with your sentiments on Costello's comments regarding Australia's debt levels, you're playing the man instead of the ball from roughly the second paragraph onward today.

    Do you disagree that the prcess was a shemozzle?

  2. I suspect that Costello's sour grapes were fed by Conroy's sly implication that he's a muppet.

  3. David Murray said last year:

    "If the economy is already indebted, and terms of trade are at an all-time high, causing capacity constraints in the economy, incremental indebtedness of governments will crowd out the private sector," Mr Murray, a former Commonwealth Bank of Australia chief executive, told The Australian.

    "This includes the indebtedness of both state and commonwealth governments. The lessons from Europe and the US is that high public indebtedness can lead to significant structural difficulties."

    Also don't verbal people. Costello did not say "close" he said it "won't be too long". That's not actually controversial. If we borrow like we have for the last 4 years for the next 5 or 6 we sure will be getting into big trouble.