International Family Business Blog

Monetary Theory?

So here we are in 2013! 

In the US Capitol Hill peered over the edge of the Fiscal Cliff and took a half-step back. A little more in tax revenue, but same-same spending. Mega deficits still loom large. 

The official US interest rate remains @ 0.25%.

In Australia the AUD remains strong at around USD1.04. However, the tax take on business income is substantially below forecasts and spending remains high. The Federal Government has 'legislated' for a so-called National Disability Insurance Scheme (NDIS) that is actually an assurance scheme to be funded by taxpayer to the tune of AUD15bn to 22bn per annum (depending upon whose calculations are used). As of today, neither the NDIS or the Gonski School reforms (AUD6.5bn per annum) have been budgeted for.  

The official Australian interest rate is @ 3.00%. 

Makes you wonder what value remains in monetary theory doesn't it?

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