Wry & Dry


W&D was drawn to a delightful piece in The Australian, arising from the Morrison's National Press Club presentation.

Jaren Owens: "Scott Morrison's budget overlooked one easy vote-winner: abolishing the 5c coin, which costs 6c to mint and may exist solely to remind us of what echidnas look like".

Chris Uhlmann added, "Maybe you could get it made in South Australia? It'd cost 10c".

Greece won't go away

Or rather, its problems won't.  Because of the very problem that W&D described above (just under the debt/GDP chart, in case readers missed it).

W&D is having conniptions because Australia's net debt/GDP ration is sailing past 20%.  Greece's government's net debt/GDP ratio is 175%.

The short story is that Greece has received €21.4bn from the original €86bn bailout deal, €5.4bn of which has been used to shore up the country’s struggling banking system.

For each slice of cash, Greece must pass reforms through its parliament to satisfy its creditors  the European Commission, European Central Bank, and the International Monetary Fund.

And Greece is reluctant to commit to an extra set of reforms in case it misses its spending targets in 2018 (which it will).  Negotiations continue.  And continue.  Things might get ugly in the only Eurozone country in recession this year.