on 19-09-2013 06:16 PM
Any bets?
Solved! Go to Solution.
on 20-09-2013 02:02 PM
Very few nations do not have debit. Saudi Arabia and another oil producer comes to mind (I can't remember which one it is).
The other nations (few in number) who are debt free are extremely small nations.
None of the debt free nations have defence forces to fund.
Borrowing stimulates the economy. The credit rating designates the ability to repay that debt.
Even Costello (the ex Lib Treasurer) certainly understood this and said debt is good).
You can also apply this to personal debt and personal credit rating..
Borrowing for investment properties, to purchase shares. Both tax effective.
It is personal borrowing and paying interest for items which decrease in value (ie motor vehicles) which bring people undone.
20-09-2013 03:00 PM - edited 20-09-2013 03:02 PM
borrowing got us through an economic crisis which saw many Countries go into recession...from which they are still recovering.
Our Country's ability to borrow and what they could borrow in order to stimulate our economy depended on our credit rating and the strength of our economy .
If we had only put the amount into our stimulus package which the Coalition suggested rather than what Labor did we would not have the strong economy we do have and regardless of what we have been led to believe...we have had a strong economy and the ability to repay.
Interest rates go up....we pay more
and we may risk not being able to borrow if we need it
on 20-09-2013 04:47 PM
am*3
We need to be on the same page with this information.
To be specific and get it into perspective.
.
Australia has a Public Debt of 26.9% of GDP - a Net Govt Debt of 11% of GDP
Greece has a Public Debt of 161% of GDP – a Net Govt Debt of 155% of GDP
USA has a Public Debt of 73% of GDP – a Net Govt Debt of 87% of GDP
Saudi Arabia has a Public Debt of 12.9% of GDP – A Net Govt Debt of MINUS 93%
Emirates has a Public Debt of 40% of GDP – a Net Govt Debt of MINUS 93%
on 19-09-2013 06:39 PM
Seriously, why is a triple A crtedit rating so important?
Personally I dont even have a credit rating, never have had ..........i dont have any debt either 🙂
on 19-09-2013 07:11 PM
The interest rates that country gets to pay on the money that they borrow depends on their credit rating. If you have 3 x AAA rating it means that you are low risk and get better deal. So yes, it does matter.
on 19-09-2013 07:18 PM
on 19-09-2013 07:21 PM
Does it still matter is you don't have debt and don't pay interest?
on 19-09-2013 07:22 PM
on 19-09-2013 07:30 PM
Does a credit rating still matter if you dont have any debts and don't pay interest?
on 19-09-2013 07:40 PM
@poddster wrote:Does a credit rating still matter if you dont have any debts and don't pay interest?
It's not a personal credit rating being discussed. The fact that you may not have a credit rating is irrelevent.
on 19-09-2013 07:49 PM
Why would a country need a credit rating if it had no debt pray tell
19-09-2013 08:00 PM - edited 19-09-2013 08:01 PM
Australia needs foreign investors investing their money here. They would look at a country's credit rating when deciding whether to invest there or not.
Citizens with personal debt s or none, is totally irrelevant.
Name a country with no debt? Australia has debt, Australia is what the opening post refers to.