montag
11-12-2009, 06:58 AM
Senior government figures have taken aim at Barnaby Joyce's dire warning about a global financial meltdown if the United States government defaults on its debt. Mr Joyce also came under fire for comments about the financial health of Australian states.
''That's shooting from the lip, making it up on the run,'' Prime Minister Kevin Rudd said of the new opposition finance spokesman's comments.
Senator Joyce is concerned that demand for Australia's resources would ''go through the floor'' if the US was not able to pay off its burgeoning foreign debt.
Senator Joyce told Fairfax Media he did not mean to alarm the public but there needed to be a debate about Australia's ''contingency plan'' for a sovereign debt default by the US or even by a local state government.
''How would Australia go forward in a position where the dynamics of the global economy are all changed,'' he said on ABC Radio today.
Mr Rudd dismissed the senator's comments, describing them as ''not responsible economic policy''.
Assistant Treasurer Chris Bowen went further saying Senator Joyce's comments were extremist.
''His comments on the United States need to be taken with a grain of salt,'' he said, adding the vast majority of economists believed US debt levels were manageable.
He accused Senator Joyce of engaging in a series of thought bubbles that were unbecoming of a senior economics spokesman from either government or opposition.
''Senator Joyce adopts very extreme positions, he is an extremist.''
States 'rock solid'
Separately, Mr Rudd criticised comments made by Senator Joyce that some Australian state governments might not be able to repay billions of dollars in debt.
The states were carrying $170 billion in debt and rising interest rates were affecting their capacity to make repayments, Mr Joyce said.
''I would say in some instances they do not, particularly Queensland,'' he told Fairfax Media.
The Prime Minister said such ''erratic and ill-considered'' comments should not be made by a senior opposition spokesman.
Mr Rudd described as the ''most serious charge'' the coalition's view that state governments could default on their debt.
''It's got to produce evidence of that,'' he told Fairfax Radio Network today, adding Opposition Leader Tony Abbott and his treasury spokesman Joe Hockey needed to confirm or repudiate Senator Joyce's claim.
Mr Rudd said any message to international financial markets about the ability of state governments to repay debt needed to take into account the national interest.
State and territory governments had some of the strongest credit ratings in the world and Australia had a ''rock-solid and robust'' reputation for public finance.
''There are basic interests for Australia at stake here and responsible, calm, considered policy suggests that the sort of remark ... should simply not be made,'' Mr Rudd said.
''This is gross economic irresponsibility, policy on the run and shooting from the lip.''
AAP (http://www.theage.com.au/business/joyce-blasted-for-extremist-views-on-debt-20091211-kn3d.html)
''That's shooting from the lip, making it up on the run,'' Prime Minister Kevin Rudd said of the new opposition finance spokesman's comments.
Senator Joyce is concerned that demand for Australia's resources would ''go through the floor'' if the US was not able to pay off its burgeoning foreign debt.
Senator Joyce told Fairfax Media he did not mean to alarm the public but there needed to be a debate about Australia's ''contingency plan'' for a sovereign debt default by the US or even by a local state government.
''How would Australia go forward in a position where the dynamics of the global economy are all changed,'' he said on ABC Radio today.
Mr Rudd dismissed the senator's comments, describing them as ''not responsible economic policy''.
Assistant Treasurer Chris Bowen went further saying Senator Joyce's comments were extremist.
''His comments on the United States need to be taken with a grain of salt,'' he said, adding the vast majority of economists believed US debt levels were manageable.
He accused Senator Joyce of engaging in a series of thought bubbles that were unbecoming of a senior economics spokesman from either government or opposition.
''Senator Joyce adopts very extreme positions, he is an extremist.''
States 'rock solid'
Separately, Mr Rudd criticised comments made by Senator Joyce that some Australian state governments might not be able to repay billions of dollars in debt.
The states were carrying $170 billion in debt and rising interest rates were affecting their capacity to make repayments, Mr Joyce said.
''I would say in some instances they do not, particularly Queensland,'' he told Fairfax Media.
The Prime Minister said such ''erratic and ill-considered'' comments should not be made by a senior opposition spokesman.
Mr Rudd described as the ''most serious charge'' the coalition's view that state governments could default on their debt.
''It's got to produce evidence of that,'' he told Fairfax Radio Network today, adding Opposition Leader Tony Abbott and his treasury spokesman Joe Hockey needed to confirm or repudiate Senator Joyce's claim.
Mr Rudd said any message to international financial markets about the ability of state governments to repay debt needed to take into account the national interest.
State and territory governments had some of the strongest credit ratings in the world and Australia had a ''rock-solid and robust'' reputation for public finance.
''There are basic interests for Australia at stake here and responsible, calm, considered policy suggests that the sort of remark ... should simply not be made,'' Mr Rudd said.
''This is gross economic irresponsibility, policy on the run and shooting from the lip.''
AAP (http://www.theage.com.au/business/joyce-blasted-for-extremist-views-on-debt-20091211-kn3d.html)