“At that point desires and wishes become irrelevant and reality becomes a terrible taskmaster. We can not believe that we can keep on borrowing money from countries with peasants to pay for our free health and free education, it is completely implausible in the mid term to long run, and possibly closer,” he said. “The piper is coming for payment for the ludicrous stimulus package fiascos and it is imperative that the service-based work force of Australia understands its vulnerability under the trajectory that we have been catapulted along by Mr Rudd.

 

“Can Australia keep borrowing money? Mr Rudd has long since spent ours to pay for his stimulus packages. Before the ink dries on a third we are supporting the public service and amenities with billions of dollars of other people’s money. The cuts that must come will completely change the complexion of how our country works.

 

 “Australia will not be able to pay for three tiers of Government and it is most likely states that will have to go. Public health will not be free nor will education to the extent it is. Taxes can only go so high before they make the domestic economy worse. The terms on which we borrow money will change and ultimately the cost of funds will start racing up for all with debt. Incentives such as the first homeowner grant will be impossible to finance and the housing bubble will pop.

 

“Is this overstating the event; no, not the way Mr Rudd is borrowing the money. If I were back in my accountancy practice he would definitely be the worst client, the hopeless case without a semblance of the reality that he is taking his family into. 

 

“In 2007 I kept buying for friends and recommending to colleagues that they read ‘The Keynes Mutiny’ by Justin Walsh when there was the belief that markets go up forever. Now I recommend that they read John Kenneth Galbraith’s ‘The Great Crash, 1929’ if they believe they can stimulate your way out with debt.”