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.

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

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%