Bailout feeds household debt crisis—go with HBPB

Citizens Electoral Council of Australia
 

Bailout feeds household debt crisis—go with HBPB

Kevin Rudd’s bailout of the bankrupt financial system has saddled Australians with so much extra debt, that 33% of Australian postcodes are now within the “high-risk” category of financial distress. This figure is up 30% on the same time last year, according to a Dun & Bradstreet study.

Since increasing the first home owners grant, a sharp rise in credit obligations has been observed, as revealed by the Dun & Bradstreet study. The research found that 29 of the 50 most financially stressed suburbs, are in the first-home owners belt, which includes the outer Melbourne suburbs of Chirnside Park, Cranbourne and Carrum Downs and Sydney’s western suburbs Mount Druitt and Auburn.

On 7th August, Dun & Bradstreet chief executive, Christine Christian, told The Australian the rising risk of loan defaults underlined the potential for the global financial crisis to become a personal credit crisis in many Australian homes.

“These figures show that the financial distress in Australia is only set to get dramatically worse,” Citizens Electoral Council leader Craig Isherwood said today.

The D&B study shows that the “high risk” suburbs are not confined to any particular socio-economic category. It includes battlers’ suburbs and some of the wealthiest urban areas—the Melbourne outer suburb of Frankston North is recorded as the postcode with the highest risk of default, followed by two of Sydney’s most exclusive eastern suburbs, Bellevue Hill and Woollahra.

The U.S. economic collapse, which began in July 2007 with the sub prime mortgage crisis, will fully collapse under present conditions by no later than mid-October, which in turn, will trigger a systemic collapse of the global monetarist system, as has been forecast by physical economist, Lyndon LaRouche. Click here for his latest webcast scheduled for Wednesday, 9th September, 2009, 3:00am AEST live (archived soon thereafter).

“What’s needed, as we have long said, is the immediate implementation of our Homeowners and Bank Protection Bill as a transitory measure in the move toward an anti-monetarist, credit-system based economy. This, together with a Pecora Commission-style Inquiry into corruption and possible criminality in the financial system, and the reestablishment of a truly national bank, is the only solution to pull Australia back from 30 years of economic vandalism,” said Craig Isherwood today.

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