We’re in deep debt hole

WHETHER we like it or not, whether we think the Earth will be burnt to a crisp or, like the flat- earthers, simply refuse to believe, climate change is happening.

Just how difficult it will be to modify our behaviour is playing out.

The Federal Government is searching for a mechanism to allow development of coal- fired power, with some in its ranks pushing to block renewable schemes, and the Queensland Government is looking to double coal exports.

While some say Australia’s actions are meaningless in the context of emissions worldwide, which is likely true, this is not an argument for maintaining the status quo.

It is prudent to begin preparing ourselves.

Assuming the world does not descend into widespread conflict over resources and we are not caught in the cross hairs, I think people in North Queensland are in a very fortunate position.

Securing water will be vital and we live on one of the country’s biggest water catchments based on the Burdekin River.

Demand for these resources will grow and what we pay for this water will increase.

Current plans to augment our Burdekin supply will cost us more money in rates, something our leaders are yet to share.

Latest research suggests the frequency of El Nino events could double in a generation even if global temperatures are stabilised, which looks increasingly unlikely.

Our droughts will be more severe and more frequent.

Interestingly, though, research suggests the number of cyclones will decrease, albeit with the storms that do occur being more intense.

The US has just come through a hurricane drought with just two storms in recent weeks causing damage of $ 200 billion. That’s a lot of greenbacks. It would be naive to think our insurance bills will decrease.

Mitigating against storms will also be vital.

We must press Canberra to direct spending to this pursuit. WE ALL know our country is in deep debt. In just 10 years we have gone from a federal government in surplus, to a country with a debt limit that’s been increased to $ 600 billion.

However, there’s an even bigger problem that almost every household faces, but for some reason we don’t want to talk about it: the debt we personally owe.

This week we learned the average Australian household owes $ 169,000.

To give you an idea of how much that has blown out, back in 2004 it was $ 94,000.

Obviously we have to borrow more and more to buy a property these days, but it’s our inability to pay it back that’s the worry.

Earlier this year the Reserve Bank published some scary numbers.

Back in 1989, when interest rates were through the roof, we still took out lots of debt, but it was only 60 per cent of the money coming in to the house, so slowly we could pay it off.

In 2017, we owe 190 per cent of the money that comes into a household.

To put that in context, in the US back in 2007, just before the GFC, debt to income was 140 per cent.

Put simply, we can’t afford and will never pay our household debt off with the money we earn.

The only way we can is if our houses double their value by the time we want to sell them. That’s fine if you are going to stay in the same place for decades, but what happens when interest rates go up?

We are so far in the hole that thousands will be forced to sell, way before their property price gamble can pay off.

In fact, the Australian Bureau of Statistics showed us this week that 30 per cent of households owe more than three times the money they make in a year.

It’s human nature to always want to take a step up in life. Most of us