Letter To The Editor from Peter Davis

  Re On Target the below may interest you.

There is a very old truism that states: “Tis an ill wind that blows no good.”
It may seem strange to link the world pandemic of Coronavirus with the above truism. But, it is a financial fact that Coronavirus has very clearly demonstrated, world wide, the ease and speed with which enormous sums of “money”, or credit, can be created. America? $3.4 TRILLIONS. Australia? MANY, MANY BILLIONS overnight. An engine requires petrol, or fuel in order to function properly: So, too, does Australia’s economy require “money”, or fuel, to function. The difference between the two is simple. Petrol is a liquid, [something we understand], that we can put in a container or in our fuel tank for our engine to function. However, credit, or money, we do not understand, except we all know we depend upon it for our very existence. Very few people have any idea of the source of our credit, or “fuel” needed for our National engine to run smoothly. The financial catastrophe confronting our Nation due to Coronavirus should be concentrating our “money” thinking. Where, or what, is the source of our sudden money supply? Have we forgotten the necessity of a few weeks ago to deliver a “Budget Surplus”? Have we forgotten our financially starved Economy of a few weeks ago? Have we forgotten the futile interest rate cuts of the Reserve Bank of Australia to stimulate our economy? We would do well to ask our politicians;

1/Has our National Debt been increased by the huge borrowings undertaken
recently?
2/ Will our children and grand children have to shoulder increased National debt
repayments, plus interest, due to recent Government borrowings?
4/ Or, has our National Treasury created debt free “credit” as our original Parliament
owned C.B.A. did from 1912 to1924?
The answers to these three questions should interest all of us.
Lack of, or dirty, fuel stops engines and economies;…… “Tis an ill wind that blows no good.”

  Cheers,
  Peter Davis, Port Lincoln