Over at Cairnsblog, Mike has pursued the prevailing unhinged populism on the pagan evils of all and any debt by posting a parliamentary question time performance from new Treasurer Tim Nicholls:
"Feedback from QTC's recent financial markets interactions indicates that market participants consider the State's fiscal position to be unsustainable and are looking for the Government to deliver a credible strategy to address the State's level of debt and ongoing budget deficits as a matter of priority"Nicholls apparently did not table direct advice from QTC on "unsustainable" debt? So what of the actual market behaviour of recent market participants? QTC released its weekly market update on Monday which included this chart reflecting the actual bahaviour of market participants with real money on the table rather than seeking media attention:
Note here Queensland bond rates have been plummeting which is hardly reflective of a perception by investors of an unsustainable debt or fiscal position. Actually the reverse, as QTC also noted in the latest weekly update issued only this Monday:
Another week has passed and yet again long-term global, Australian Government and QTC bond yields have fallen to record low levels as investors continue to flock to the safety of selected government bond markets.What's that? The market is buying up all it can get of "unsustainable" debt in Queensland? Ah Queensland, safe haven one day, unsustainable the next?