Where does our (Australia's) credit come from?

[lozzie]

Forgive me if this sounds niaeve but I'm really confused as to where our Gov. is borrowing its money from.

I mean, we aren't just printing our own money as all that would do is cause inflation. Yet, if every other 'developed' nation faces the same "economic crisis" or whatever you want to classify it as ... where does all the money come from to fund the budget?

 

[WESTERNdeitySIXmoths]

treasury bonds

 

[Stoffel]

New Zealand?

 

[Monarchist]

Gee Lozie how can you be so naive
Actually I have been wondering about that for some time, I havnt a clue
International monetary fund, I am guessing.
I have asked this to many people who one would tghink would know and never got a reasonable reply.
Somebody pulling the strings I am guessing.

 

[WESTERNdeitySIXmoths]

from anybody interested in a slice, through the issuance of bonds which are later bought back, basically

http://www.aofm.gov.au/

lots of info there

 

[WESTERNdeitySIXmoths]

much comes from overseas nowadays:

Chart 4: Non-resident holdings of Treasury Bonds

AOFM — Annual Report 2007–2008 - Role of the Commonwealth Government Securities Market

 

[Monarchist]

Yeah the aofm borrows the money off some interest group. Thats simple
But who and what are those interest groups. These groups havnt been touched by the financial problems and seems to be able to lend billions and billions to anybody, say like the UK, US ,Aus anyone struggling and this organisation can bail out in trillion $ amounts. Who are they. Dont say the Chinese as they are about to go under.

 

[DavinMochrie]

From the real masters you own the world Banks. Who own the US Federal Reserve.

These are private individuals and families who are unknown to the public, and whom make a lot of money from 'economic crisisies' and who actively encourage said crisises.

They also tend to make a lot of money off war.

 

[TrutherAU]

All credit comes from debt of cause someones elses debt thats how basic fractional collateral interest works. Its not rocket science despite the jargon.
In nut shell debt is not a dirty word despite how it is portrayed as no credit would exist without it!.

 

[WESTERNdeitySIXmoths]

lol "basic fractional collateral interest"

what on terra firma are you talking about?

anyway, let's try this one last time:

TREASURY BONDS

that's not an "opinion" or something, that is the answer to lozzie's question

also, lozzie, nobody else in this thread has even the slightest idea what they are talking about, so don't pay attention to anybody but me

 

[Monarchist]

Treasury bonds? Thats not an answer thats two words. Two words doesnt give you the right to be arrogant
Treasury bonds need to be sold, who is buying them.
Thats a simple question

 

[lozzie]

thanks everyone who tried to explain it to me

 

[WESTERNdeitySIXmoths]

i gave more than two words- two words nobody else deemed relevant- i gave an explanation, a link, and even a graph illustrating the % of foreign ownership. as for who buys them- how am i supposed to know? ask an economist. maybe the information isn't widely disseminated. lozzie just asked for the mechanism.

what did you add to the discussion?

you said the chinese were "about to go under"!

i was not being arrogant- suppose somebody didn't know where to look and were trying to help out their little brother with a paper? and here i am just a voice amongst other gems like "From the real masters you own the world Banks", "basic fractional collateral interest" and the IMF...

what's wrong with saying "i don't know"?

even if i were arrogant, what does that matter? when you give a wrong answer to something, "you hurt my feelings" isn't a legitimate criticism

 

[Monarchist]

I dont know, but the treasury bonds dont lend us the money.
I am very interested in who lends this country the money that we will have to one day pay back, and treasury bonds is not an answer. We sell treasury bonds, but to who.
Surely somebody out there must know who buys them from our government.