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| Thread ID: 118489 | 2011-06-07 04:54:00 | Borrow Now | pctek (84) | PC World Chat |
| Post ID | Timestamp | Content | User | ||
| 1207480 | 2011-06-07 04:54:00 | From the Herald today: The Government is practising "good cash management" by borrowing an extra $5 billion this year to take advantage of low interest rates despite gross debt hitting $71.6b, a senior economist says. Finance Minister Bill English confirmed some borrowing had been brought forward because of ''favourable'' conditions, with interest rates dropping from just under 6 per cent to just over 5 per cent. English said the deficit would fall back to below $10b next year and then ''be virtually eliminated'' in 2013/14. The Government would then start running surpluses and repaying debt. gee what a good idea, I have a mortgage but as rates are low, I better go borrow a big chunk more. |
pctek (84) | ||
| 1207481 | 2011-06-07 04:59:00 | go buy a new car (or newer) EDIT: or better yet go on a big holiday so the money goes off shore and all you have left are memories |
Gobe1 (6290) | ||
| 1207482 | 2011-06-07 05:36:00 | gee what a good idea, I have a mortgage but as rates are low, I better go borrow a big chunk more. Are you borrowing against the equity in your home to fund other investments? Kinda simple economic principles in play there :stare: |
pablo d (15490) | ||
| 1207483 | 2011-06-07 11:23:00 | It's more rope to hang the country by. When you factor in that most people only pay enough tax to support the local infrastructure and nothing more, and will never pay significant tax above that, then the debt burden on those who ultimately will be paying this off is well over $80,000 per person. Plus the constantly accrued interest charges. Lets face it - either be poor in NZ for many generations or emmigrate to a country that hasn't crippled itself to foreign bankers through living well beyond our means. Sooner or later we will have to have a political party with the bollocks to actually make savage cuts. Last person to emmigrate gets saddled with all the debts. |
Paul.Cov (425) | ||
| 1207484 | 2011-06-07 20:19:00 | Lets face it - either be poor in NZ for many generations or emmigrate to a country that hasn't crippled itself to foreign bankers through living well beyond our means. Mmm, which one? Um, China. |
pctek (84) | ||
| 1207485 | 2011-06-07 20:23:00 | Yes the govts doing the exact opposite of what they tell us to do. Mind you I spose thats normal. | Clod (7853) | ||
| 1207486 | 2011-06-07 22:04:00 | From the Herald today: The Government is practising "good cash management" by borrowing an extra $5 billion this year to take advantage of low interest rates despite gross debt hitting $71.6b, a senior economist says. Finance Minister Bill English confirmed some borrowing had been brought forward because of ''favourable'' conditions, with interest rates dropping from just under 6 per cent to just over 5 per cent. English said the deficit would fall back to below $10b next year and then ''be virtually eliminated'' in 2013/14. The Government would then start running surpluses and repaying debt. gee what a good idea, I have a mortgage but as rates are low, I better go borrow a big chunk more. As its a real possibility (not certainty) NZ's credit rating will get downgraded in the next year, not to mention a deepening problems in the Euro zone, its very likely to heavily effect sovereign borrowing rates esp of smaller nations. The last thing you want is the government running out of money in the middle of the most costly natural disaster in NZ history. Seems very smart to me having a buffer, you cant compare this to personnel borrowing. I would also like to point out NZ sovereign debt has historically been much higher as a percentage of GDP in the past, a fact that doesn't make exciting journalism for the likes of Stuff, so don't go hitting any panic buttons. |
Battleneter2 (9361) | ||
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