5 hours ago, Kent said:

So in April 2006 we had zero federal debt

on the 20th anniversary federal debt has ballooned to 1 trillion dollars

That is $1000 Billion for the people who dont figure

Sure no problems at all

We were left a $1tril debt after Covid in 2022.

4 hours ago, Bowserpower said:

Quotes like Bullock's are correct but often used out of context. The government can't run out of money like a business can but it doesnt mean debt is meaningless. Inflation, exchange rates and financial stability still impose limits so its not like the debt doesnt matter.

Yes, inflation imposes limit. It is the limit! Not government debt. And in case you hadn't noticed, Australia and most of the world have been operating in a floating exchange rate environment for almost 50 years.

Again, multiple central banks have done papers on exchange rate pass through being small to non existent, mostly because most import items are actually priced for the domestic market they're sold into.

As it stands, we have next to no financial stability because nuffies like Chalmers and the RBA refuse to use fiscal policy to reduce inflation and they use NAIRU, a mythical, imagined number to manufacture enough unemployment to hopefully reduce inflation. That is not price stability. That is hitting and hoping, and crushing working people in the process.

They could do what Japan has done for the last 5-6 years and provide oil importers the excess import margin in exchange for price caps. An anti inflationary fiscal expansion. I won't hold my breath that Chammers and co will use any sort of fiscal policy to reduce inflation.

Instead, what we've seen since 2022 is inflation driven in part by interest rate rises, which feed through the rental component of the CPI.

And back to your original thesis, no, government does not matter. It only matters politically, while we let it.

4 hours ago, Bowserpower said:

Well no, government debt is a financial asset for whoever holds the bonds but that doesnt make it private savings. In fact a large share is held by institutions and foreign investors.

Because foreigners have the choice between non interest bearing AUDs they accumulate in trade with us or interest bearing AUDs in the form of debt. Which one would you take?

And again, Australia hasn't issued foreign denominated debt since 2004. So all its liabilities are in AUD, and Treasury is the only source of the AUD currency.

Banks are allowed to create credit in AUD (the vast majority of the money supply), because they have exchange settlement accounts with the RBA in order to do business in this country. They use the reserves/AUDs in those accounts to carry out daily interbank transactions to ensure the functioning of the private banking system.

But given you've mentioned exchange rates as a limit, it's pretty clear your thinking is still fixed in the Bretton Woods era, like most mainstream economists.

Edited 1 hour ago1 hr by Adam The God

5 hours ago, Redleg said:

With Tennis Australia, the Pies and the Tigers all wanting us off Goschs, I would imagine that body I don't trust one bit, the AFL, would be keen to see us somewhere else in the short term.

If that is the case, for us to release our leverage as the current tenant, we would have to know that our long term base is happening.

To leave without long term security would be impossible to sell to the club members.

The AwFuL are a corruption of administrative delegation. They weren't always but have been for a long time.

When old Ralphy Lane ceased influence it all went pear shaped.

It's a club....just not one we're in 😞

I will be in the MRC Committee room for lunch on saturday and will ask the Vice Chairman who I know and/or a few other Committee persons what the state of play is.

3 hours ago, Fritta and Turner said:

No, the trust exists to manage the racecourse reserve which is crownland. I think the MRC pays $300k pa which wouldnt leave much change after the gate man, dunny and bbq cleaner are paid. And keep the dog poop bags stocked, which from where I have stepped dont get much use.

That's correct F&T - the CRRT is already on board and has in fact extended their MOU with the MFC until June/July 2026 to allow the government, i.e. the Premier, to knock the final heads together (i.e. the Sports Minister and the Racing Minister) and get the MRC to play ball - particularly re the tunnel access. The CRRT prefers us to be there because they will get more lease rental income to maintain their own operations and, more importantly, they will finally develop something meaningful inside the racecourse (i.e. two quality sporting ovals) which fits in with their master plan - which was the scope of the feasibility study completed some time ago. The MRC has, selfishly, never wanted anyone else in the precinct, except for the time when the school came along and represented an opportunity to wipe out their massive debts.

10 minutes ago, deelusions from afar said:

Thanks for the update - I'm so confused about this when it seems like the MRC are no longer keen?

From the infamous 'Betsy' article that recently came out, I'm wondering if the MRC were expecting more benefits of the deal. The comment around the tunnel is one thing - that really could be mitigated if need be however the unwillingness to share the administration facility is interesting.

Maybe they thought they were getting some new free gym area/office space/canteen/commercial kitchen bar usage via the Demons new HQ but we've told them that will 100% be ours.

"There are many issues that threaten to scupper the deal – the main being the football club’s insistence a tunnel is built underneath the racetrack [which would shut racing down for at least a year], not to mention an unwillingness to share an administration facility."

Nothing worse than an additional rooster in the hen house. If this is the case, I hope we hold firm.