'No doubt': Hockey adamant corruption is flourishing in Washington

Australia's former ambassador to the United States, Joe Hockey has issued a damning indictment of the US political system on 7.30.

Asked if corruption had been allowed to "flourish" in Washington DC he said: "Yeah, there's no doubt."

"It's a very grey line here in Washington DC between proper government processes and corruption.

"From my own experience of 20 years in Australian politics … Australia has essentially a corruption-free government because here in the United States, there is a high degree of greyness between government and personal enrichment. 

"That applies as much in the Congress with the share trading of senators and congressmen as it does within parts of the administration."

Mr Hockey said that corruption had become worse and "more apparent" throughout the past two years, during which time Mr Trump has been in office.

"I can't point to a single act of corrupt behaviour but various parts of the US government are very forward-leaning in their partnerships with the private sector," he said.

"As long as that's transparent, it's fine, but there seems to be a lot of activity that goes beyond that."

Mr Trump's own financial disclosure, released in June, revealed the president made $US1.4billion ($2billion) from several cryptocurrency ventures in the past year.

Mr Trump has recently denied any corrupt dealings while in office and said he donated his salary from his first term as president.

His administration has repeatedly denied corruption allegations.

Mr Hockey, who is president of advisory and investment firm Bondi Partners, said other US actions abroad — including in Venezuela, where US forces captured then-president Nicolas Maduro and jailed him in New York — seemed to be "too close to the everyday administration".

In August, Mr Trump said the US had struck a deal with the South American nation to "control" more than 65 billion barrels of Venezuelan oil.

"There's interesting behaviour more generally when it comes to promoting America's interests in other countries," Mr Hockey said.

"There's just too much of a blurred line between the financial interests of various administrators, including the Congress and the private sector."

Mr Hockey said one solution to any issues related to corruption could be the greater scrutiny that would come if the Democrats retake control of the House of Represenatives at the upcoming midterm elections.

That scenario appears to be becoming more likely based on Mr Trump's flagging approval rating.

The latest six-day Reuters/Ipsos poll put his approval rating at 32 per cent, as Americans struggle with high cost of living and spiking petrol prices, as a result of the Iran War.

"There's no doubt there will be certain issues where it will be very uncomfortable for Donald Trump over the next two years, including a higher level of scrutiny and accountability around behaviours by members of the administration and also, members of the wider family and friend group of key people in the administration," Mr Hockey said.

"There needs to be that level of scrutiny here in Washington DC.

"I think it's good for America to have that proper accountability, which has been lacking over the last two years."

Has Trump 'diminished' America?

While Mr Hockey attacked what he termed the "grey line" he said he believed that "overall, American politics is transparent and accountable" and that Mr Trump has frequently been subjected to "extraordinary scrutiny".

That scrutiny has extended more recently to America's decision to be involved with Israel in taking military action against Iran.

That war has caused global shipping lanes to halt and oil prices to rise as Iran restricted passage through the Strait of Hormuz.

Mr Hockey said he believes someone had to eventually take action on Iran, that it was Mr Trump surprised him.

"Sooner or later, someone had to make some hard decisions about Iran," he said.

"The least likely president to do so was, was the one that did it. 

"Donald Trump doesn't like war and I think one thing that is holding him back on Iran is that he just does not want to see young American soldiers in body bags."

Halfway through his second term it seems obvious to Mr Hockey that the US president is focused on cementing his own legacy but he said what that legacy is remains up for debate.

"There's no doubt Donald Trump is the most powerful and influential figure in American politics over the last hundred years," Mr Hockey said.

"Some of the initiatives that he has put in place are game changers that have strengthened America, but history will also judge that there have been some initiatives that have diminished America.

"One of them is tariffs and quotas, and the weaponisation of tariffs against not just enemies but … against allies."

The 'crazy' world of government debt

Having acknowledged cost of living is a problem in the US, the former Abbott government treasurer also spoke about economic conditions and called for governments worldwide to curb their spending.

"There is no doubt that governments around the world are running out of money. They continue to borrow and spend there is no handbrake whether it be in Australia, the United States or Europe," Mr Hockey said.

"Sooner or later it is going to end in tears.

"We are going to see a fall in our quality of life and our standard of living because governments everywhere haven't been able to pull back on their populist spending."

In August, US government debt surged past the $US40 trillion threshold for the first time — more than doubling in the past 10 years, reflecting heavy spending under the Trump and Biden administrations.

Asked how that might impact Australia, Mr Hockey said it would present "significant challenges" for the nation when it came to debt.

"No governments pay off the principal," he said.

"They just keep to accruing more and more debt and more and more interest. 

"This year, you know, the interest bill on Australian government debt is going to be $30 billion, that's about the same the government spends on school education. 

"In the United States, the interest bill on their debt is nearly the same as what they spend on defence.

"It's crazy and it's unsustainable."

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