THE DEBT BOMB

Media reports have provided a graphic picture of international bankers telling the Botha Government in South Africa that nothing can be done to ease the problems of the nation's internal debts until more "political reforms" are introduced in South Africa. Australia is in a much worse debt situation than South Africa, and the controllers of Australia's massive external debt are in the position to exert tremendous pressure in Australia's internal policies.

For years we have been warning about the disastrous long-term effects of increasing financial debt, stressing that escalating debt is the inevitable result of financial orthodoxy. Attempts were made to denigrate what we were saying. But reality is now becoming so clear that at long last some are starting to sound the alarm about the nation's massive debt burden. The Bulletin of December 3rd has its cover story "OUR CRUSHING DEBT BURDEN." An article, "How big government has built a crushing debt burden", opens with the striking statement that "For every $100 that big government borrows this year, $93 will be used simply to meet the interest bill on previous borrowings". The Bulletin story relates to an address by a Sydney broker, Hr. Jim Dominguez, who made the following points at the recent Australian Accountants Centenary Congress in Adelaide:
The Australian public debt has quadrupled in the past 10 years. Only Italy has topped Australia in the rate of debt creation. The total borrowings of Commonwealth and State Governments, and public utilities, have escalated from $25.4 billion 10 years ago to almost $107 billion. This means a tax bill of $17,250 for each of Australia's 6.2 million taxpayers. Nearly a quarter of the total debt has been borrowed overseas. Interest payments to the international debt merchants totalled $1.9 billion in 1984-85. Australia's international debt problem has been intensified by the fall in the value of the Australian dollar, which makes it progressively more difficult for Australians to service the debt.

Dominquez made the telling point that "If foreign debt levels are too high for Australia's ability to comfortably service interest charges and capital payments ... a large area of responsibility must be sheeted home to the expansion of big government in Australia. The debt bomb could be used by Australia's enemies to blow the nation to pieces. But it could also be progressively defused by politicians with the courage to face the truth that debt finance must be curbed if Australia is to survive.

(Essential reading: The Money Trick, $5 posted from all League addresses)

WHEN ESPIONAGE IS 'DIFFERENT'

Chas Pinwill comments
"Israel has denied any knowledge of Jonathan Pollard, the U.S. Navy counter terrorism specialist, accused of selling it (Israel) U.S. Defence Secrets." The Australian, November 25th.

In the short term there is no risk of an upset to Israel U.S.A. relations, any more than there was over a decade ago when Israel was stealing material suitable for atomic bomb making. In the short term the U.S. will continue to be pilfered of financial aid, technology, and intelligence, in Israel's Interests, Largely, though not wholly, this will be accomplished by "dual loyalists": that is Jews who regard themselves as Americans and Zionists at the same time. Given the prevalence, and popular support of the "dual loyalty" position, there cannot be very many U.S. secrets outside the reach of a particularly determined effort by Mossad (Israel Secret Service). Much material is openly shared anyhow.

Given that Israel has been totally dependent upon the U.S.S.R. for sufficient immigration to maintain itself, and that it must be expected that the Soviets would be asking at least market price for this export, how can the U.S. be so confident that its security secrets do not form at least part of the currency of Israel's payment?

TUTU BACKS NO 2
Christians around the world have been given an insight into Bishop Tutu's faith and approach to morals in a recent scandal to erupt at his (Johannesburg) St. Mary's Cathedral. The Dean of Johannesburg, the Very Reverend Mervyn, Edwin, Castle has been convicted of committing an unnatural sexual offence with a black man (The Australian, November 25th.) Interest has centred on Bishop Tutu's response. He was present in the Court during the trial, went out of his way to warmly embrace Dean Castle, and apparently minutes after the conviction, paid the fine of $(Aust.)350. Is this taking trafficking with publicans and sinners a little too far? Surely there can't be too many Anglican deans in the world who would have the support of their Bishops in their homosexual activities. Not only the Dean's standing, but Tutu's also, has had the old one- two.

THE "NEW" IDEOLOGICAL BUREAUCRAT

"The N.S.W. Anti-Discrimination Board has accused the historian, Geoffrey Blainey, of lending 'legitimacy' to racism. - The Age (Melbourne) November 30th.
According to Ms Carmel Niland, the President of the above Board, Professor Geoffrey Blainey is "guilty" of the "new racism". Australians, even distinguished academics like Professor Blainey, may no longer in the coming era of the Thought Police (little did we suspect that we would witness this in our Australia!) speak their minds. If one's thoughts conflict with official Communist/Socialist/ Humanist ideology, then these thoughts are now to be suppressed: if not, then the "new" ideological bureaucrats (good Socialists/ Humanists all) will spring to the attack to destroy the credibility of the victim.

Loyalty from the "new" ideological bureaucrat is assured by the payment by Big Brother (with our money!) of a more than generous salary. But Big Brother still doesn't have all the power he wants to pluck those guilty of thought crime off the streets and admission, by force, into "remedial' thought clinics, where the mind can be "purified" by the cleansing waters of Socialist Humanism to make all well again.

But wait, impatient ones, we shall soon have the Bill of Rights, and its Human Rights and Equal Opportunities Commission (its cutting edge!) to clear up the little matters of extra powers. All done in the course of United Nations "humanitarianism" (Humanism!) by domestic legislation based on U.N. Declarations and Conventions; a sheer trick first envisioned by Dr. H.V.Evatt to circumvent the Australian Constitution. Furthermore, this was upheld by the High Court of Australia by one vote. One man has allowed true democracy and freedom in our Australia to be thrown into peril.

BRIEF COMMENT

In spite of Mr. Hawke's prediction last year (election campaign propaganda) that interest rates would fall: he isn't so sure now - those interest rates are increasing and "biting" into the real estate market. Mr. Hawke told a radio interviewer recently that he wasn't intending to make any predictions as statements from Prime Ministers and/or Treasurers can influence the market. He didn't mind doing that last year.

We can recall, last year, speaking to an executive of one of Melbourne's largest firm of real estate agents, who denied that the (then) forthcoming capital gains tax would affect his industry: "Australians would always have faith in bricks and mortar", was his reply. It sounded to us, then, like whistling in the dark. We felt sure that the "siren song of the dollar" would always be sung. Average homebuyers, and investors particularly, would withdraw from real estate to invest elsewhere if the market became unprofitable because of, say, punitive taxation. That's what is happening now! And the capital gains tax isn't even biting yet. It has just been introduced, for further application in the future. A special survey by the L.J. Hooker organisation has shown that rising interest rates and the fear of the capital gains tax are already bringing out a slump in the market for housing. Next year should prove worse (realism, not pessimism).