tag:blogger.com,1999:blog-4314112685994399920.post6256776486440447881..comments2024-03-28T07:44:28.089+11:00Comments on Tasfintalk: Missing millions and the law of trivialitytasfintalkhttp://www.blogger.com/profile/04012719835733649162noreply@blogger.comBlogger10125tag:blogger.com,1999:blog-4314112685994399920.post-9860114102881580212014-01-28T21:23:09.560+11:002014-01-28T21:23:09.560+11:00Insolvency means being unable to pay debts as and ...Insolvency means being unable to pay debts as and when they fall due.<br /><br />Notwithstanding that the State has assets exceeding liabilities, we may nevertheless be unable to pay debts as and when they fall due.<br /><br />But we are not at that stage yet.<br /><br />Even in worse case scenarios we have lines of credit which will enable payment of debts as and when they fall due for a few years at least.<br /><br />The problem for Tasmania is the present structure means extra borrowings can’t be repaid, and all parties are reluctant to raise revenue by extra taxation.<br /><br />At this stage however I can’t envisage a situation where the Australian government stood by and watched a member of the Federation defaulting.<br /><br />But it’s not impossible.<br />tasfintalkhttps://www.blogger.com/profile/04012719835733649162noreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-22631963211127088962014-01-27T15:28:14.997+11:002014-01-27T15:28:14.997+11:00John,
is there any chance that the Government cou...John,<br /><br />is there any chance that the Government could be literally "trading while insolvent"? Can you envisage a time in the very near future when we could see a Cypriot style financial crisis in our state?<br /><br />regards<br />JAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-63006651170102345892014-01-15T21:32:45.359+11:002014-01-15T21:32:45.359+11:00This comment has been removed by the author.tasfintalkhttps://www.blogger.com/profile/04012719835733649162noreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-1601882357450968852014-01-15T21:23:42.396+11:002014-01-15T21:23:42.396+11:00This comment has been removed by the author.tasfintalkhttps://www.blogger.com/profile/04012719835733649162noreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-22767702222166963622014-01-15T17:06:21.143+11:002014-01-15T17:06:21.143+11:00I read through the analysis and was left with the ...I read through the analysis and was left with the thought that what is unsustainable is the ongoing annual budget deficits. Somewhere down the track the Govt will have to run surpluses and/or sell off assets to pay off the debt it has accumulated. Until that happens the Govt has to either borrow internally from whatever accounts it has in cash surplus or go to the market and borrow externally. I guess the cheapest and most flexible way to borrow is internally from its own cash accounts. I assume the cash in those accounts either sits idle earning no interest or maybe it is swept up each day and earns a low overnight rate. The alternative is to go to the market and borrow externally through Fincorp at relatively high rates of interest.<br />If all this is the case then the Govt strategy of using money that is in their accounts such as SPA etc is a good least cost strategy. Provided both the internal and external borrowings are disclosed in the Govt equivalent of their balance sheet then the money from the internal accounts is not really missing. It has been put to a good purpose. Mark Ferghttps://www.blogger.com/profile/01749990697302166343noreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-32647298413100718362014-01-09T22:53:53.945+11:002014-01-09T22:53:53.945+11:00Sure, thanks.Sure, thanks.Philipnoreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-25030401539920435222014-01-09T20:15:33.940+11:002014-01-09T20:15:33.940+11:00It is legitimate to do as Will has done . If he ca...It is legitimate to do as Will has done . If he can abolish an ongoing function or functionary it is legitimate to include it as a savings in each year of the forward estimates.<br /><br />That’s not to say there aren’t a few rubbery figures in Will’s plan. <br />tasfintalkhttps://www.blogger.com/profile/04012719835733649162noreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-85757034902784629022014-01-09T11:24:40.801+11:002014-01-09T11:24:40.801+11:00John I have been looking at the Liberals list of p...John I have been looking at the Liberals list of proposed savings in their alternative budget. Am I correct in thinking that they are counting the savings over and over again each year or are they legitimate as savings every year? The document is on Will Hodgman's web site in the brighter future documentPhilipnoreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-65920141609760247872014-01-07T16:43:20.074+11:002014-01-07T16:43:20.074+11:00Perhaps we need to stop electing people who are se...Perhaps we need to stop electing people who are selected by the same organisations that gave us the problem in the first place and start looking for competent, intelligent adults who have proven themselves competent and who are beholden only to those doing the voting in the electorate being stood for?Simon Warrinernoreply@blogger.comtag:blogger.com,1999:blog-4314112685994399920.post-4943427171525752192014-01-06T14:31:10.614+11:002014-01-06T14:31:10.614+11:00This government appears trapped. They have (and ar...This government appears trapped. They have (and are) acting more like spokespeople for the public service than as representatives of the citizenry. If that's what is happening, then how can they think about, discuss or implement real change. Anything more confronting simply won't be understood by any listeners.<br /><br />Millions have gone into government media units, fox task forces, studies and reports, while major amounts have been 'granted' to footie clubs, racing interests and so on. The elected politicians behave like problem gamblers.<br /><br />Who can fix this? There is no-one that we can appeal to. No fix is likely until the entire state is so deeply mired in financial problems that the feds are forced to step in.<br /><br />Meanwhile the rest of us have to keep paying for these dolts to pee our money up against the wall!Richard Bartonnoreply@blogger.com