Australia really is a lucky country.
We grow more food than we eat, we have endless sunshine and wind to power a clean future, and we’re home to one of the world’s most stable democracies.
That political stability is our true superpower, because it leads to something many countries can only dream of: monetary sovereignty.
That term might sound technical, but it’s beautifully simple. Monetary sovereignty means our democratically-controlled Commonwealth Government has full control over the Australian Dollar. It can issue it, tax it, and spend it — without needing permission from any foreign lender or institution.
In plain terms, we are the boss of our own money.
That’s not true everywhere. European nations using the Euro have handed control of their currency to the European Central Bank. Other nations, like Venezuela, Sri Lanka, or Brazil, owe billions in foreign currencies, usually US dollars. And when you owe money in a currency you don’t control, the people who do control that money hold the power.
That’s not our problem. Every dollar of Australian Government debt (Commonwealth and State) is issued in Australian dollars. That means we can always meet our commitments — not by “printing money recklessly,” but by using the tools of a modern, well-run economy.
Other countries with this same strength include the US, UK, Canada, Japan, and New Zealand.
Monetary sovereignty isn’t just an economic concept; it should also be the foundation stone of our national confidence. It means we can invest in ourselves – in healthcare, education, and world-leading support systems like the NDIS – knowing we will never “run out” of Australian dollars.
The links below explain how our money really works – and why understanding money changes all your expectations and beliefs about what Australia can achieve.
If you fancy a really deep dive into how money works, then please follow this link for comprehensive suite of articles that explain how money works in the UK and the US – two other parts of the world that, like us, enjoy monetary sovereignty.
Where do Australian Dollars come from?
Why the Commonwealth Government is Different to State and Territory Governments
What does the NDIS Need to Succeed?