DEBT DRUG TO EASE INFLATION PAIN

Investors and currency speculators do not share the Fraser Government's confidence about the good times ahead this year. The result has been a large outflow of finance capital and, under present financial rules, a threatened further major devaluation. Such a devaluation would further contribute to inflation at a time when Federal Treasurer Howard is assuring Australians that it has been brought "under control."
The Government has reacted to this threat by promising to borrow heavily rather than devalue. Mr. Howard says that the Government would extend its $1700 million overseas borrowing programme "should any additional supplementation of Australia's international reserves be required.

Australia's outstanding official overseas debt is still low by historical standards. There are substantial resources available to Australia from international monetary institutions as well as large scale scope for increased overseas borrowing in private capital markets." In case Australians become concerned about a policy of mortgaging Australia still further to foreign interests, Treasurer Howard attempts to soothe them with a piece of typical Treasury jargonese: "It is important to understand, however, that the policy of expanded official borrowing overseas if firmly based on a sound account position.

If Australia were to adopt a sane finance economic policy, financial costs could be substantially reduced, this making Australian exports much more competitive. Reducing financial costs is the key to solving most of Australia's problems. Using increasing debt to try to solve problems is like using a pain-killing drug. There is a short term easing of the pain, for which the "patient" may be thankful. But as the debt drug does nothing to remove basic problems, and it eventually rots the body politic.

The first essential step towards reducing financial costs is a drastic reduction in Sales Tax and substantial cut in interest rates. As Mr. Howard and his colleagues have at present no intention of adopting this type of policy they are going to see all their soothing predictions destroyed by realities.

STRAIGHT TALK ON SUBSCRIPTIONS

BRIEF COMMENTS

South Africa has a law against Europeans and non- Europeans marrying. The law makes sense to the great majority of Europeans, who have had a long experience of the problems of race mixing. But it is one of the issues, which the enemies of South Africa exploit in their campaign to destroy that nation. Recently the media of the world was full of sob stories about a South African coloured being forced to go to the United States so that he could marry a South African European.
Now consider a law of Saudi Arabia. Princess Misha Bin Abdul Azis, 23-year-old granddaughter of King Khalid's brother, eloped with a student. This was, according to Islamic law, a crime requiring death. The student was a commoner and the Princess already married, although separated from her husband. Although deeply tormented by the situation, King Khalid agreed that the law must apply to one of his own Royal family. The Princess was shot and the student beheaded. German born Rosemarie Buschow, who worked as a governess in the Saudi Arabian royal household, and who knew of the romance between the Princess and the student, was so shocked by the punishment that she left. However, she says, "I don't think the Saudis are barbaric. It is their law. As a Westerner, I found it shocking. But you have to remember that it is their country and their law."
If the South Africans shot and beheaded those violating their marriage laws, the United Nations would probably call for military intervention. But little has been said about what happened to Princess Misha and her lover. And, of course, there is no international pressure to attempt to force Saudi Arabia to give women the vote - in the sacred name of "majority rule."

Prime Minister Fraser has been loud in his protestations against what he claims are the excessive protectionist policies of the European Economic Community. Upon arriving in Australia last week, one of President Carter's top trade negotiators, Mr. Alan Wolff, said that Australia was "over protective" in its trade policies." Mr. Wolff wants Australia to buy more manufactured products from the United States. While political leaders are paying lip service to the desirability of freer trade between the nations, unrealistic finance economic policies are forcing them to intensify their attempts to achieve a "favourable balance of trade". All those of commonsense who have been fortunate enough to have escaped brainwashing by the economic "experts" can readily see that one nation can only achieve a "favourable balance of trade" at the expense of other nations. Trade wars can lead to military wars. The Marxist revolutionaries are delighted.

One of the "bright boys" of Mr. Fraser's Ministry, Minister for Production, Mr. Ian Macphee, has openly displayed his sympathy with the secular humanists. In a letter published in The Age, Melbourne of January 11th, Mr. Macphee attacked the Right to Life Association and the Festival of Light, claiming that "unless these organisations responded realistically and sympathetically to the problems of people, they would continue to be viewed by a majority of Australians as extremist and their contribution to society would be entirely negative. Mr. Macphee said that Parliament should frame laws "which enable individuals to regulate their own lives as much as possible in accordance with their own conscience." He advises the two organisations to devote their time, and money, to more promotion of contraceptives.
Civilised man has always realised that sex is a major reality of life and that firm principles governing its use were essential if civilised societies were to be maintained. When Mr. Macphee talks of "encouraging people to relate to each other as human beings", he uses the language of the secular humanists, the front-runners of the Marxist revolutionaries.