Kookaburra read with astonishment that the Treasurer, our own Sonny Jim, has headed off to the USA to ask for tariff concessions whilst spruiking the possibility of Australian super funds applying some of their $US2.8 trillion in holdings to investment in US infrastructure. According to reports, Sonny Jim will be pushing this line at the inaugural Australian Super Summit at the Australian embassy in Washington. “That’s all about stronger returns for Australians from stronger ties with the American economy,” Dr Chalmers told the ABC’s Insiders program. How about stronger ties with the Australian economy Jim?
This is less than a day after the Prime Minister announced a massive increase in Medicare funding of $8.5 billion, which was then topped by the Leader of the Opposition with an announcement of an increase of $9 billion for Medicare. Where is the money to fund these announcements?
Forget about being able to magically produce $8.5 or $9 billion dollars to fund anything without increasing debt. How about by way of obtaining investment? How about this for an idea Jim? Compel Australian super fund managers to invest a certain percentage of their holdings in Australia and, in particular, in targeted Government bonds. For example – defence bonds, health bonds, infrastructure bonds. We need a lot more investment in these areas here in Australia than is happening now.
The US can get by quite readily without our help Jim.
Good points Kookaburra.
How about investment in Australia flood and bushfire mitigation in Australia, at minimal levels. The Productivity Commission has pointed this out in reports.
Thank you John. I agree. Long term government bonds at reasonable rates of return. Get that capital working, rather than hugging the index. Apply the capital here in Australia to the many areas needing that additional kick along, such as those critical areas which you mention. Another benefit is that such an arrangement should hopefully enable the government not to raise taxes to fund these expenditures. Cheers Kookaburra