Australia’s net foreign debt exceeds $1 trillion for December. Net foreign debt (national debt) is the sum of money Australia owes and all the money they owe Australia. See the ABC figure chart, using the Australian Bureau of Statistic’s since the December quarter, 1998-2015. Net foreign debts are loans of one country owing to another country, including due payments to international organizations such as the International Monetary Fund. It can include borrowing from businesses and governments. Unsurprisingly the majority of the debt is owed by the public sector, this includes governments at federal, state and territory levels. While, the remaining debt is owed by banks, and private organizations. To read more on the danger of external debt see the Mises Institute article. However, households owe foreigners almost nothing, yet are forced to pay of the public debt burden through taxes. Though, most likely because of the housing bubbles where household mortgages are from banks which borrow from foreigners.
ABC link to article <http://www.abc.net.au/news/2016-03-01/australia’s-net-foreign-debt-tips-over-$1-trillion/7210622>.
International Monetary Fund website <http://www.imf.org/external/index.htm>.
Mises Institute article on the dangers of external debt <https://mises.org/library/danger-external-debts>.
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Copyright © 2016 Zoë-Marie Beesley
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