Australia is about to have an election in which both sides are concerned about producing a budget surplus.

That is absolutely ridiculous in a situation where Australia’s massive private debt bubble (brought about by impossibly high mortgages) is in the process of bursting.

It’s the private debt about which we really should be worried – and a surplus budget will add incredible fuel to this deflationary fire!

Forget budget surpluses, guys! It’s time to spend up big – and responsibly!

Stephanie Kelton is not so good on the private debt issue, but she can’t be beaten on why governments should NOT be seeking to balance the budget.