Reference:- The federal budget has been revealed , and the Sky News anchors are concerned .

 Reference :-    The Sky News anchors think this budget looks like one that the crazy left might produce .

Dear custodians of conservative economic policy at Sky News , 

By Jove , we haven't had a budget like this from the Tories before .   After watching Sky News  I started to worry about uncontrolled government debt . It will soon be 43% of  GDP at this rate ! 

Here at The Sky Reply young Monte is our numbers man , so I asked him to explain the country's economy in layman's  terms .   

"It's easy enough to understand if you just think of the nation as a household . Clearly it is common sense to equate an entire nation's economy to a household budget , since the only difference is simply one of scale , Monte said  .   I liked the sound of that . 

 " Keep talking .  I like simple explanations . "  ,  I said

  Monte explained the obvious , which is that the countries most in debt are in a bad way , whereas those with little debt  are prosperous .   

 " Give me some examples " , I said . 

 " Well the UK , France , Germany , the  USA , and Singapore all have two or three times the government debt we have in Australia . "  ,   Monte said . 

  " Those places must be dreadful " , I said . 

  "  Name some countries with less debt than us . "  ,  I said . 

 " Kosovo has half our debt ratio . Afghanistan a quarter of it  , and Libya about a tenth . " Monte said 

 "  Well those countries must be the most prosperous in the world . "  ,  I said

  Gabbo had been listening . 

 "  Can I say something  ? "  ,   Gabbo said . 

 "  A household income stops when the breadwinners retire , but a country's income goes on indefinitely and continues to grow with time . That means the household budget analogy is wrong .  "  Gabbo said . 

 " Stop complicating things Gabbo . "  ,  I said . 

 " And tell me , why is the government encouraging folk to borrow ten times their annual income to buy a house if debt is bad ?   That is 1000% of their personal GDP , and they have only a limited working life to pay it back . "  ,  Gabbo said . 

 " You're making my brain hurt . " , I said . 

  Anyway ,  Gabbo then gave me a money problem to solve .

 He calls it " Find the missing money . " 

 It looks simple ,  but if I can't work it out myself  I will ask for help in tomorrow's post . 

 Your comrade , Ken .

   

 

  

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