By Andrew Bolt ~
Australia’s $1 trillion foreign debt is emerging as the biggest concern for credit ratings agencies as they consider whether to give formal notice that the government’s AAA sovereign credit rating is in danger.
S&P; Global Ratings’ analysis shows Australia’s foreign debt is more than twice the size of its foreign income from exports, dividends and royalties, which is more than any other country in the world except for Greece and the U.S. Australia is also spending 5.6 per cent of its foreign income meeting interest payments, which is more than any advanced country except for Spain.
S&P is yet to give its verdict on the Turnbull government’s first budget but rival Moody’s was critical of the slowing pace of budget repair, which it said was still dependent on over-optimistic forecasts of economic growth and the government’s ability to cut spending.
Andrew Bolt writes for the Herald Sun, Daily Telegraph, and The Advertiser and runs Australia’s most-read political blog. On week nights he hosts The Bolt Report on Sky News at 7pm and his Macquarie Radio show at 8pm with Steve Price.