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EYE-BALL’s Guru on – The Wayne Swan 2013-14 Federal Budget – A Special EYE-BALL Guru Report Part 1 -
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 Latest GURU Posts:
- 14th May – When is Government a Business and – when is Government a Government - - 13th May – Wayne Swan’s “Treasury Mistakes” – The Evidence of Incompetence – a Ponzi expert in the making. - 10th May – Wayne Swan’s “Treasury Mistakes” – A Follow-Up - - 29th Apr – Wayne Swan’s “Treasury Mistakes” – Heads must roll – Swan and Bradbury must accept responsibility’ - - 23rd Apr – Wayne Swan’s – “Investment pipeline” - disappearing before his eyes – where does he go for his next ‘bunny excuse’ - - 21st Apr – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot - - 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - To see more GURU posts: – click here … |
Title: - The Wayne Swan 2013-14 Federal Budget - - A Special EYE-BALL Guru Report – Part 1 - | Author: EYE-BALL Guru | 18th May 2013 | |
 Treasurer Swan’s 2013-14 Budget speech has been delivered, Mr Abbott’s reply likewise – the verdict is in the eyes of the beholder.
Swan’s ‘Groundhog Day ‘ promise of another surplus some years hence tests us all. His creditability lies in tatters and he has again applied for another $50 billion credit over the forward estimates. In reply – Abbott was slick, concise, and maintained his ‘small target’ image that so infuriates the ALP. Abbott does not have to beat a drum, offer lollies, or make anything bigger that it has to be … come September it will all fall to the Coalition as the toxic ALP brand drags itself over the cliff into the abyss. Swan’s vision of Australia’s future is a fantasy of his own imagination, ever hopeful the electorate will believe some time before the Sept ’14 election. Gillard and company want the ‘cock-fight’, a gutter contest where they believe they can best Abbott. The electorate have turned off Labor causing the rant that beats to their angst. They are a confused and manic mob probing for any leverage to engage an already disengaged public – the echo of the death-knoll sounds in the background as the funeral march as begun. For any ALP message to penetrate, they have to first have to deal with the ‘creditability’ issues. The Coalition advertising campaign will not let us forget the promised and failed surplus’ and more. Swan’s current budget exposed all the ‘grave-holes’ prepared over the past six years and they have now became uncovered for all to see. The task is how to link the ‘zombies’ lurking in the pathways that hold the keys that protect all these budget black-holes. It is time to expose Swan’s PONZI scheme designed to defraud Australia under the guise of ‘Jobs Jobs Jobs’ and a lunacy that lies to protect itself from the truth. Table 3 below helps reveal the numbers that entrap Swan in his past manipulations with the Budget forecast/estimate numbers – Swan has become good at moving them around and putting them back together every year to come up with a newer version that fits the political agenda and message for the time. This fraud began in the turmoil of the GFC spend, and has continued ever since. Unaccounted for spending across all the stimulus initiatives is still a matter not resolved, compounded by the Gillard agenda to socialise our political landscape. Gillard has no financial kudos, she comes from the criminal side of ‘Lawyerville’ … and fraud is no stranger to her or a number of her AWU partners in crime. What’s a few hundred $billion between comrades all from Union careers steering this Nation to a vision only shared by a small minority. Gillard and her cronies are the apocalypse … they have hijacked traditional Labor values and voters are wise enough to see the future under a brazen hussy without a moral bone in her body. But beyond the obvious, proof is needed to confirm the fraud … and it is contained in the Swan Budgets, their forecasts, and the reality of how those estimates and forecasts compare with the actual results. The Result numbers don’t lie …
In addition, remember these words spoken by Mr Swan in his Budget speech May 2012 -
Those promised surpluses lay in tatters as Swans horror’s all come back to haunt him … The forecast budgets for 2013-14, 2014-15, and 2015-16 all predicted as surplus’ 12 months ago, now have headline forecast results of:
…and Mr Swan now believes he can deliver a balanced budget in 2017-18. The reality of these numbers are daunting in the backdrop of a global financial crisis where debt is the enemy. Gillard and Swan have walked us to the edge of the abyss and they think they have done no wrong. Swan so often uses the words ‘envy of the world’ when he talks about Australia’s economic numbers and the current debt/GDP levels. The mind boggles at Swan’s flippancy and the post mining boom direction this Nation is headed toward. The rest of the economy is already on life support due to inaction by both the Government and the RBA to do something to stem the impact of 10 years of high A$ value. Where will Swan turn when the resource ‘cash and carry’ trade unwinds and capital flows out of Australia? Why will his rabbit look like when interest rates begin to rise and revenues really do begin to fall away? Swan predicted surplus’ in his first ever budget in May 2008 as follows:
These original forecasts predicted a cumulative surplus of $85.6 billion over the next four years. The cumulative total of ‘actual’ Budget results since 2008-09 is a total of $205.3 billion in deficit’s and new debt. That is a difference in ‘forecasts verses actuals’ through 2008-09 to 2011-12 of $290.9 billion. That is a $12k+ spend for every man, women, and child in this Nation. 2012-13 was to be the return to surplus followed by another 3 years of surplus’ as Swan told us in May 2012. Well the 2012-13 result is now forecast at $20 billion deficit with another three years or forecast deficits to replace the surplus’ Swan promised 12 months ago. Swan wants to say that the Australia’s GDP/Debt ration is the envy of the world – without China buying our resources, we might not have that luxury … Swan does not get it … Howard Costello spent 10 years paying off the Hawke/Keating debt legacy, and then all Rudd, Gillard and Swan could do was open the credit card again. There was reason in 2008-09 with the GFC threatening. But by 2009-10 China had saved us yet the spend continued in even increasing budget deficits. Swan, Wong, Gillard, and the other MP’s tasked with selling the Budget message, will only want to talk to questions on the future. Yet – until The Government answers questions on why the Treasury modelling got it so horribly wrong, Swan and the Government’s creditability will be like the opinion poll forecasts … nada, nada, nada … no more thankyou … In the ‘Budget Speech’ after-show media frenzy – and you really should see some of the ‘Front Page’ cartoons the morning after, ‘and to give you a glimpse two more have been pasted below – many thanks for the easy cut and past option from the Newspapers concerned, and to that end I have tried to accredit where possible…’ Some Levity … The Australian Front Page Post Budget morning: The Courier Mail post budget: Watching ‘News 24′ after Swan delivered his Budget, I felt sick listening firstly to Swan, and then to Wong as they both provided their sales pitch and narrative to the budget just delivered. Their version of the fraud was all about hard-selling the ‘revenue writedowns’ in efforts to rewrite history. Reaction to the Budget from political experts, economists , and industry groups has been one of porous scepticism. Commentators on the ALP loving ABC the next morning were fragile in their optimism … Swan’s creditability was not something they wanted to talk about at length. The media had already focused their attention on Abbott’s reply … could they be more obvious … that Michael Rowlands is one heck of a goose … All this ‘noise’ … and the most likely outcome is that Swan’s best efforts will sink faster than the ‘Titanic’ as the election rolls on and the polls decide Gillard’s and Swan’s fate well ahead of the election date. Interestingly though – at the National Press Club address on the Wednesday after the Budget speech – Swan boldly stated that he expected the ALP to win the next election. He commented on the continued ‘small rubber-ball’ target the Opposition Leader represents and that all the drama has been around the Government. His performance at that National Press address and during the Q&A after was full of hubris and dismissive to say the least – questions with 3-4 prongs and taking 40-50 sec to ask were answered with one liners and one word responses. It was contemptible and gave all the indication that the journo’s in attendance neither had the balls or the knowledge base to challenge Swan and put him down with questions that challenge everything he presents as factual. End of Part I …
Meanwhile some reading of the 2013-14 budget papers can be obtained via the links below. The 2013-14 Budget: - |
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Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
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EYE-BALL’s Guru on – When is Government a Business and – when is Government a Government -
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| Latest GURU Posts:
- 13th May – Wayne Swan’s “Treasury Mistakes” – The Evidence of Incompetence – a Ponzi expert in the making. - 10th May – Wayne Swan’s “Treasury Mistakes” – A Follow-Up - - 29th Apr – Wayne Swan’s “Treasury Mistakes” – Heads must roll – Swan and Bradbury must accept responsibility’ - - 23rd Apr – Wayne Swan’s – “Investment pipeline” - disappearing before his eyes – where does he go for his next ‘bunny excuse’ - - 21st Apr – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot - - 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - To see more GURU posts: – click here … |
Title: - When is Government a Business and - - when is Government a Government - | Author: EYE-BALL Guru | 14th May 2013 | |
Where does a Government get the ‘creds’ to measure its own responsibilities in business like terms when forecast revenues, budgets, and underlying debt become challenging? Mr Hockey is heir to the Treasurer throne and will be the Treasurer in a few months. Understanding his belief system is very important to what he will bring to the table as a Treasurer. In a speech delivered a little over 12 months ago to the INSTITUTE OF ECONOMIC AFFAIRS in London – link to full speech – Mr Hockey spoke at length about the ‘era of entitlement’. The speech is a road map to Hockey’s mindset about Government and its overriding responsibilities. At face value the comments may seem naive and Liberal policy sabre rattling. If Mr Hockey believes everything he said in his address, then that is a little frightening when we look at the developed world, the GFC after taste, the ongoing and unsolved global debt burden, and the extent of the people suffering under austerity measures. Hockey’s vision can be seen as a Government trying to implement business type models and act like a business wanting to disengage from the true and overriding responsibilities of Government. If that is overstated, then at the very least he wants to hit the reset button and allow a review on the real purpose of where Government sees itself into the future. An example of Hockey’s belief system …:
Surely Mr Hockey understands that it is the politician who makes the promises to get re-elected, and then spends the money on policies to remain elected. Does he suggest his Government will be different? Identifying the problem does not solve the problem!!! In contrast, my last few posts have taken Mr Swan out for a spin and proved his dunce-hat status when it comes to his ability to understand currency value, and its impact on the trade wars that exists and ignite around labour costs, the efficiencies of Industrial Law, and with a workforce and welfare receipent base all resistant to any form of wage/pension reductions. Mr Swan’s answer has been to fund the revenue shortfall with new debt, and rather then rein in new spending, his Government has set the wheels in motion with more and new large ticket policies that will mortgage the Nation even further into the future. Mr Hockey in his address above sees the madness in Swan’s logic and intent. But then Mr Hockey swings the pendulum toward a commercial context and that puts his position as a politician serving the people, at odds with the responsibilities of any true democratic Government. It is only with a review of history that the mistakes made back then can be revealed in the present. Howard’s middle class welfare spend is where the problems started and currently exist. Having given that welfare help to people who did not really need it, how does a Government try to take it back from those who already have it. And in the face of a GFC aftermath that has seen reduced work hours and the only real jobs growth in part-time employment. For voters the choice is easy – give Gillard the reins and see the Nation become another Greece, or Spain within 3-5 years, of give the keys to Abbott, hoping and trusting his team know what they are doing. Hockey’s Budget reply response on Thursday will be a real test for the ‘big’ now ‘much smaller’ man. He is yet to shine on his own in matters of finance and Treasury. His financial blueprint for an Abbott Government could set up an early election via a ‘no-confidence’ motion in coming weeks. If he fails – it’ll be back to the drawing board and Mr Swan will get to swoon for a few more months – all to Australia’s detriment.
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| Please – if you found this story to your liking and would like to promote it to your social media contacts – i.e. Twitter, Facebook, or other icon linked account below – please click your favoured Icon(s) to promote the story. Thank you
Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
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EYE-BALL’s Guru on – Wayne Swan’s “Treasury Mistakes” – The Evidence of Incompetence – a Ponzi expert in the making.
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| Latest GURU Posts:
- 10th May – Wayne Swan’s “Treasury Mistakes” – A Follow-Up - - 29th Apr – Wayne Swan’s “Treasury Mistakes” – Heads must roll – Swan and Bradbury must accept responsibility’ - - 23rd Apr – Wayne Swan’s – “Investment pipeline” - disappearing before his eyes – where does he go for his next ‘bunny excuse’ - - 21st Apr – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot - - 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - To see more GURU posts: – click here … |
Title: - Wayne Swan’s – “Treasury Mistakes” - - The Evidence of Incompetence - - A Ponzi expert in the making – | Author: EYE-BALL Guru | 12th May 2013 | |
Link to all Post in Series:
This post has been edited 13th May 2013.
Extensive extraction of the data allows a full disclosure of the 2012-13 Swan budget. That research is further produced below. Financial analysts working for media outlets have the same information as do the countless Bank and other Financial Institution Economists. These ‘plebs’ or would be discoverers number crunch every day looking for the dark holes in financial reports. The Federal Budget is the biggest game in town – and yet the void of challengers prepared to call Treasurer Swan out as fraud and liar number so few. The collective voice has been to allow the Government to sell its ‘revenue write-down’ message whilst those who would and should oppose appear content. As with the 2013-14 and every other Budget before, Journalists are locked away in the days before the Budget speech with their expert number crunchers and given free rein to do their analysis ahead of the Treasurer speech. Nobody pays any attention to the full Financial statements – all the attention is on the cash flows and the bottom headline line number outlining whether it be a surplus or deficit. The tweaks within the budget impacting taxpayer ‘gives and takes’ are the other half of the story. This author has skills in this type of research and the data represented hereto is an honest appraisal of the facts available, and with the use of some basic logic, and applying some human instinct, and behavioural expectations, the summaries and outcomes made hereto have foundation. Up first – Treasurer Swan deliberately mislead the House in his 2012-13 Budget forecasts. He stood and announced a set of numbers he knew to be false – i.e. revenue expectations, and all to a purpose to allow the Government to live the fantasy they delivered on the 2010 promised budget surplus for 2012-13. The House jeered Mr Swan when he made his speech – see YouTube link here. Treasurer Swan gave an increased revenue forecast of 11.23% over the previous years than unconfirmed growth of 9.11%. The 2010-11 forecast number was an overreach as well missing its target by some $12 billion – see Revenues Table below. Trend growth before these numbers and since 1997 was 6.6%. Why would Mr Swan predict revenue growth year on year above a 15 year average trend growth? The only other time since 2000 where revenues have increased anywhere near or above the forecast 9.11% predicted in 2011-12, happened in Howard’s term during 2005-06 when the forecast was 10.48%, and again in 2007-08 when it was almost 27%. That 27% remains double any previous years best performance. See link here to see Table to prove these numbers. New Revenue and Expenditure Tables below compare ‘actuals’ and ‘forecast’ budget numbers. Revenues:
This Table presents Forecast Budget Revenues as declared every May for the following Financial year, and then measures that forecast against the actual reported result. These results report from 2001. As can be seen, under Howard revenues always exceeded forecast, but under Labor, revenue forecast always exceeded actuals except for the 2009-10 year. In fact – during the Howard years the forecast verses actual provided windfall revenues of $88.8 billion from 2001 to 2008. Yet – the ALP record since 2009 shows revenue shortfalls in the same context of $59.2 billion. Swan has overestimated revenues every Budget he has delivered and wants us all to believe the 2012-13 failed surplus is yet again because of revenue writedowns because of the high $A and the effects of the GFC. Mr Swan excels in his magicians ‘rabbits in a hat’ and ‘jokers’ he pulls from his deck of card trick. He often confuses himself with his interchangeable reasoning. Expenditures:
Under this ‘Expenditure’ Table extraction – both Howard and the ALP Government’s allowed actual expenditures to exceed their forecast values. In Howard’s era from 2001 the total spend excess value was $56.7 billion, and under the ALP since 2009 the value is $46.5 billion to the end of the 2012 year. The 2012-13 number is not available but according to announcements, it is expected to be near forecast values. The Carbon and Mineral Rent Resources Taxes: Carbon Tax: The Carbon Tax came into law as the Clean Energy Future Legislation in Dec 2011. See Legislation link here … This new Tax had the following agenda – and as paste from AustralianPolitics.com - [Note ... this resource has publicly advised that it is closing down and all links used from the source will be broken. In that light, the text in the above link is pasted below. The media statement referred to is no longer available on the Greg Combet Media Release statement library.]
Noise … Noise … Noise … You read the ‘Clean Energy’ promised spends right … Greg Combet believed in everything he was saying on that night and would never have entertained a view would turn out to be mostly fairy tales, all made up to sell a new tax to create a revenue illusion. A tax that has no direct benefit in the global warming hoax, a tax that was hatched on the back of the alarmist theory to the global climate change phenomena engulfing the globe. Combet is now knee-deep in his own ICAC inquiry into his relationship to disgraced former NSW Resource Minister Ian MacDonald. Combet’s demons are coming back to haunt him. see story here … The forecast Carbon Tax revenues were estimated as: Source linked here
The forecast revenues from the Carbon Tax across the forward estimates amount to almost $21 billion from 2013-14. Mr Swan is now using these numbers to justify revenue writedowns across the forward estimates. Talk about floating a boat … The forecast MRRT and PRRT revenues i.e. Resources Rent taxes were estimated as: Source linked here
These forecast revenues from the Rent Resources taxes across the forward estimates amount to almost $18.5 billion from 2013-14. Combined with the Carbon Tax forward estimates, this makes a total of $40 billion of lost revenue across the forward estimates. That represents 50% of the $80 billion Mr Swan claims has gone missing across the forward estimates. Can it be said that the forward estimates were inflated in the first place? That Mr Swan was creating a false set of numbers so he could deliver a promised budget surplus? And if that be so – that then leads to the allegations that Mr Swan mislead the House on Budget night in his Budget estimates and deliberately so… the only other explanation can be that gross incompetence was involved – and yet he is still the Treasurer. The Carbon emissions trading scheme was to be introduced with a floor carbon price of $23/tonne. In the last week Combet announced the abolishment of the promised tax concession worth $1.4 billion that came attached to this scheme. Link to media release … All the future promises made as outlined in the Clean Energy Bill media released published above are all now doubtful, with exceptions for those already paid, and/or already locked into future benefits payments. With all the ‘mendacious’ pomp and ceremony Combet used to promote the Carbon Tax and its Emissions Trading scheme, and the ‘mud-in-you-eye’ slurs aimed at the Opposition, will Combet now eat his ‘humble-pie’ and line up for the free shots aimed at him? Budget Forecasts: Let’s face it – crystal ball forecasting is all Treasury estimates can offer given the global economic turmoil we and the rest of the world are dealing with. That is not to diminish the Government’s responsibility in any way to deliver honest Governance. How dare they hide behind what they do not know. If the future is uncertain on any scale where revenues are circumspect, surely the prudent and responsible thing to do is the practice restraint and try to encourage the same with the electorate. You do remember the 40% pay increases the Federal Government all voted themselves after Gillard ousted Rudd in 2010? Previously Rudd had imposed a freeze on Parliamentary pay increases. Decades of Government’s getting into power based of election promises and once there, applying a different set of policies and rules to stay in Government is the cause of the GFC in the first place. Prime Ministers come and go as do Treasurers and the like, their mistakes remain for the next lot to fix and the likes of Gillard and Swan get to walk off into the sunset on lifetime pensions we can only dream about. If the Government were to have the same accounting and prudential standards as public listed companies, and the electorate were the shareholders, the shareholders would have receive no dividends since Labor took office. In addition they would have had to top up their shareholdings with new equity to cover the ‘deficit(s)’ and the new debt created as a result. Under Howard’s 11 years in office – those same shareholders would have received dividends each and every year. This is the measurement of the competence of this ALP Government in a business like assessments. They SUCK!!! In fact – the laws Swan and his minions have broken in corporate fraud terms would see them off to serve some serious time. The reality – $300 billion of gross incompetence … that’s 300 times what Madoff ripped from his clients. Many of the projected offsets from the Carbon Tax have been implemented before the revenues came home or were verified. The same with the MRRT and as those mistakes came home to roost, and became a reality for Gillard and Swan to deal with, all that could be done was to inflate the revenue numbers as a fraud to cover up the broken promise of a budget surplus for 2012-13. Those who understood what was afoot mostly stayed silent or were no heard, and that would have included many Treasury bureaucrats who were a part of the number output. They would have known every time Swan fronted the media he told porkies, as did every other Minister, MP, and Senator trying to sell Swan’s fanciful reasoning about revenue writedowns. Technically – to say there were revenue shortfalls as measured against the forecast revenues is correct – but in the context of a larger responsibility, a forecast revenue inflated so as to justify expenditures, and election promises, is as big a fraud as there is. Swan has facilitated a climate where they have run the Nation into the ground with expenditures they knew could not be paid for from existing revenue collections. The MRRT: See ‘Guide to MRRT’ published by Hawker Britton here. Treasurer Swan and his fellow Ministers have presented the shortfall in tax collections from the MRRT as a result of an economic slowdown. He claims that the tax is a ‘profits based tax’ and that the mining industry is facing harder times then the Government expected. Poppycock!!! The MRRT was a tax grab to fund expenditures – the States own the mining royalties and the Federal Government wanted a slice of the pie. There is still a legal challenge before the High Court on the validity of the MRRT and whether it has purchase up against the States constitutional entitlements. The forward estimates from this Tax have been shown to be a sham from the first quarter collect in Sept 2012. Already this year, [2012-13] the shortfall looks like being $2-3 billion against the budget estimates. It has been revealed that to placate the Mining Industry campaign against MRRT mark 1 under Rudd, Gillard used the issue to oust Rudd and did a deal with the miners that made the tax collect impotent. It was doomed by the Legislation from the outset yet the Government kept the forward estimates in place. What would be the Government’s Motives to lie: The revenue table above proves that the ALP have overstated their budget and forward estimates well above trend growth of 6.6% for the period 1996-2008. The reasons are obvious – from 2010 Gillard and Swan made promises about returning the budget to surplus by 2012-13, and when the new Carbon and MRR taxes failed to provide the forecast buffer revenues needed to fulfil those promises – they had to make a decision to either come clean about the promised 2012-13 surplus, or fudge the revenue numbers to create the illusion of a budget surplus. This is evidence by the increased revenue forecast growth year on year from 2011-12 at 8.74%, itself well above the trend growth of 6.6%, to 11.23% for 2012-13. With this growth forecast, Swan was able to announce the small $1.5 billion surplus in May ’12. That decision created a fraud about the budget revenue position and the Government used this lie to cover its promised budget surplus for 2012-13. It was a fraud upon the Australian people. That fraud is still on-going today and more will be added on Tuesday during Treasurer Swan’s 2013-14 Budget speech. Some further evidence to support this theory is provided below. The 2012-13 Budget Speech May 2012: – linked here Spending Savings: A headline feature in Swan’s Budget preamble for the 2012-13 Budget was a forecast savings in expenditures across the forward estimates. The chart used to highlight these savings in the Budget Papers appears below:
The commentary produced with this chart can be read in full here – but states in part:
Nothing in this statement makes any sense when comparisons with the forecast numbers produced in the 2012-13 budget are analysed. If Mr Swan claims to have made $33.6 billion in saves … would that not generate an expenditure downgrade of a similar amount in the forward estimates? The forecast expenditure growth for 2012-13 over the 2011-12 Financial years only reduced by 0.39%, or $1.466 billion. That would mean that after having trimmed/identified $33.6 billion in savings, the Government went and spend all but $1.466 billion on other new policy initiatives. What creditability can Swan claim after finding savings but decided to spend it elsewhere? 2012-13 Budget Overview: linked here This Overview is 40 odd pages of expenditure highlights and one or two pages of revenue explanations – a summary where revenues have been tweaked to pay for the expenditures. This again provides evidence that Government’s focus is all on the expenditures trying to sell the electorate about the extra ‘goodies’ they will receive in their pay packets. The ‘bad’ news in how those ‘goodies’ are to be paid for is something all Government’s want to play down. This is the politics and as a factor in any equation, the factor used is what makes the formula look good or bad. In this instance that factor used is the propaganda and it has become of greater importance than any reality attached to the hard numbers. Tax Revenue as a % of GDP: In the 2012-13 budget papers a chart was used to show Australia’s low rate of tax revenues to GDP ratio. Linked here … The linked chart appears below: – [click to enlarge in a new window.] What the chart does not tell you is that all State and Local taxes imposed in this Nation are not included in this chart, a propaganda mis-direction that works every time because nobody asked the questions. See reference here … Nobody is ever going to paint themselves or use data that portrays them in a bad light. One has to go looking for the mistakes, the holes, the cover-ups and that is what our Media are charged with. We are a Nation of blind idiots and continue to accept what our Leaders tell us all the time. Those who should know better have become apathetic to their responsibilities. This allows the likes of Swan and Bradbury to roll out their agendarised version of what the Government wants us to believe. We deserve every thing that a Government does during its term in office – when is the watchdog watching the watchdog, who in turn is also watching the watchdog so to speak, going to expose the truth. GDP Growth: Another angle or perspective is to look at long-term GDP growth – see chart pack below – Source Trading Economics – [click on charts to enlarge in a new window.]
Between the 1990 figure of $305 billion, and the 2004 number of $455 billion, we see a growth rate of near 50% over 15 years. By comparison, we’ve seen GDP grow to $1.37 billion by 2012 according to ‘Trading Economics’ updates, and we know that the RBA has the GDP number at $1.45 billion at the end of 2012, that represents some 300% growth in the last 8 years. That growth had to come from somewhere!!! The only economic events of importance during that 2005-2013 period were the continuing resources boom, the GFC, and the stimulus supplied by the Federal Government post GFC. Look to the growth acceleration post 2008 when the Governments stimulus started. On this basis alone – it can be argued that this GDP growth as another example of how Government spending influences crucial and relevant economic indicators. By comparison, the USA and other Trading partner GDP growth rates for the same period are exemplified in the following chart pack:
Canada:
About the only Nation with a similar chart structure, if not the same growth percentages. The UK:
Japan:
China:
By far a chart with extraordinary growth numbers. No wonder Australia survived the GFC and then that poses the question – why the continued stimulus spend into 2010 and beyond? EuroZone
These comparisons re all Northern Hemisphere verses Southern hemisphere, and explain the reasons how Australia survived the GFC – China’s growth alone provided us with GFC insulation. No other western Nation has GDP growth like Australia and it is hard to fault the Government on that point. Given the cost of the high A$ and its impact on revenues and economic downturns in all Industry, jobs, and infrastructure, where does one look to find reasons for the exponential GDP growth? It can only be Government debt induced – and that is not what an economist would call genuine growth. Inflation Index: It’s been a long-held belief that the ‘inflation’ index as used to spike annual Government budgets, is also used to ensure the economy moves forward in GDP terms. Yet the inflation CPI index is the barometer used to measure the strength of the economy and what feeds from that drives every other economic indicator. In other words it’s a ‘loop’ equation, without one i.e. the positive CPI – the economy would stall and all Government revenues would also stall and fall away – commonly referred to as ‘deflation’… All commerce is a supply and demand equation – inflation indexing just gives the right to increase as a part of the loop equation. If supply is abundant you would think prices would come down – this happens in produce in seasonal terms, yet in Labour terms when unemployment grows, the response should be cheaper labour costs. When Government services are cut and staff laid off, those staff without jobs would surely work for the Government at a lesser cost then the staff who were not laid off. This should bring wage cost dow in a true and free market. But – the Unions enter the equation here and in coming years you can expect immense pressures on wage costs as Australia’s competitiveness with the rest of the world erodes further – another by-product of the high A$ policy. The point being – the inflation index is not a true nor realistic economic indicator in free market terms. Yet – the Government’s use of it to frame year on year Departmental Budgets creates the illusion they have to increase budgets, pensions, and the like in tandem to the CPI increases. This view is truly a black and white view and not so much applicable or tried in any modern economy. Modern economics is in disarray because of the GFC and its destruction to forecast modeling. If the revenue side of Governments budget is derived from a multiplier of the targeted inflation forecasts, then again multiplied out across the forward estimates using a variable multiplier, how can a forecast be treated with any accuracy? Any public listed Company, or medium to small business who produced budgets like this would have their shareholders and Bankers sacking CEO’s and the Board. Revenues are where all profit based business’ operate from. Why is it different for Governments? Opposition Creditability: The research on display hereto is available to anyone interested in exposing Swan’s Budget lies, and to that point, why is the Opposition spokesperson Joe Hockey, unable to land any real blows against Swan. Me thinks that the Opposition Treasury understanding and knowledge base is challenged in theory and conditioned by the same Treasury modelling in trying to find real fault with Swan and his Treasury performance. It might be because they don’t what to discredit Swan too early before the election and let some new Treasurer they don’t know run the show – hardly. I can advise the Opposition there is nobody on the ALP side who could do the job, and if Swan is the best of them, Australia deserves everything Swan leaves as an aftertaste when he exits. Best Treasurer in the World – ha … a gong awarded by overseas investors who have had their siphon hoses plugged into Australia’s wealth for the last 10 years. Swan lives in a fantasy land: Swan gave an interview with Laurie Oakes Sunday morning. That interview can be read in full here… and in part Swan responded as pasted below:
Oakes nailed him, skinned him, all but pissed on him … and Swan sat there and kept telling lies … and they say there is no crime in a Politician telling a little white lie … Oakes … you are over and need to get a new gig … Summary: To offer up some mitigation – Gillard and Swan did try to plug the revenue gap with the Carbon and MRR Taxes. Neither came near forecast predictions and are now in tatters with the collapse of the Carbon Price in Europe, and the end to the mining boom from Australia’s perspective upon us. Swan and the Treasury should have known tax collections would be down after the GFC because of the equity and other GFC writedowns carried forward. Also the property investor with negative gearing assets has been able to offset their payee tax with property writedowns because of the lackluster property markets. All the revenue forecasts took none of the GFC aftermath into account. That is all on Swan. Next Tuesday 14th May ’13 is Budget night and Swan will put on his magicians cloak yet again and try to mesmerize Australia with his own brand of magic numbers. Unfortunately – this little Aussie battler will have to be content with throwing rotten tomatoes at the TV because he can’t be at Parliament House to do it personally from the public gallery. Believe what Mr Swan has to say at your peril … |
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EYE-BALL’s Guru on – Wayne Swan’s “Treasury Mistakes” – A Follow-Up -
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| Latest GURU Posts:
- 29th Apr – Wayne Swan’s “Treasury Mistakes” – Heads must roll – Swan and Bradbury must accept responsibility’ - - 23rd Apr – Wayne Swan’s – “Investment pipeline” - disappearing before his eyes – where does he go for his next ‘bunny excuse’ - - 21st Apr – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot - - 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - To see more GURU posts: – click here … |
Title: - Wayne Swan’s “Treasury Mistakes” - - A Follow-Up - | Author: EYE-BALL Guru | 10th May 2013 | |
Link to Previous Post in Series:
Common … nominal GDP verses real GDP … we’ll get to that a bit later … Then there was the ‘Citizen John’ example Gillard used in her own budget write-down explanation whilst trying to sell another Government mis-direction. When stupidity and ignorance combined it makes for a special kind of dumb. Gillard, Swan and all the other Team Gillard neanderthals have constantly shown their preponderance to change their stories to suit the moment. Australian’s are not buying the excuses for the revenue shortfalls – and they have every right to think that way. Everybody is looking at this from the wrong angle – the Government has been selling the message that it is revenue writedowns as the reason for the widening deficit. Every economist out there has happily jumped on board and supported the claims with facts against forecasts and actuals. If they were good at their job rather than follow the scent laid down by the Government, if they had a ‘light-bulb’ moment and look at the flip side, a place the Government does not want anyone poking around – you will see where the carnage really is. The Table and Chart presented in the previous post, and again displayed hereto – shows the expenditure growth from 2007-8 and paints a clear picture of how the Rudd and then Gillard Government went on their spending sprees. [Click on Image below to enlarge Table and Chart in a new window. The 2013 figures are from latest estimates.] It’s quite simple really – Rudd came to power in late 2007 – and the 2007-08 budget set under Costello was on target for a monster surplus. That surplus ended up being $28 billion – by far the largest surplus of any Government in Australia’s history. From that $28 billion surplus in ’07 – ’08, to a $32 billion deficit in ’08 – ’09 is some sort of crazy madhouse spending spree. This was still Rudd and we know about GFC educed:
To get your head around a $60 billion single year increased spend:
This was in the middle of a GFC panic and it was global – some four years later the Central Banks spend has proved crippling to all across the Nth hemisphere – Australia claims to have escaped the worst and that optimism is about to crumble. Rudd’s GFC panic has amounted to short-term gain for a long term pain. Whatever Rudd’s agenda was to reign in the budget spend was superceded when he was booted in a night of back room deals and Union movement and all to a plan. Gillard’s appointment gave he and her backers the socialist platform and the stage from where they could execute their agenda. The spending would not stop and the evidence is there. To placate alarmist economists the 2012-13 budget was promised to be in surplus and still the new policies and their expenditure rolled out. Nobody minded because Gillard sounded sincere about the surplus budget in 12-13 … and it was so up until Dec ’12 when the Government came clean and announced it was abandoning its surplus target. That surplus has now been revise several times i.e.
The true is they have no idea … they have put in place irreversible policy spending and the revenues have increased well above trend/average as the table above shows – but the problem the forward estimates created has come back to haunt Gillard, Swan and the Gillard sideshow of Ministers. None of them can explain because none of then knew from the outset how bad a Treasurer Wayne Swan really was. Spending is easy when all you have to do is ask … is just plain crazy to believe that in a GFC impacted world – finding new revenues to fund new spending will happen without cuts in other areas and restraint. The writedowns from the equity markets since 2008, the property market flatline, the interest returns in a low-interest rate environment, whoever did the forecast numbers on forward estimates for:
… had to have some idea what was going to happen. These writedowns should have been obvious to Treasury, the RBA, and Government advisors in economic terms, and the advice would have been given up the chain. The issue then becomes why did the Government and its policy advisors ignore the obvious downstream impact issues that would arise if they continued with their spending programs? There was a magnificent opportunity offered up when the A$ v US$ fell from parity to below A$0.50c in the turmoil of the GFC in late 2008 and early 2009. This happened as off-shore investors pulling their funds out because they saw the end of the resource ‘cash and carry’ trade. A decision was made then and there that off-shore capital was more important to the Nation than a devalued currency. Having got the monkey off our backs in that A$ sell-down, the RBA and Swan invited the carpetbaggers to hop on board again, and that saw the A$ rise just as quickly, retracing all it’s lost value and more within the next 8 months. Glen Stevens has to wear the ‘dunce-hat’ on this one along with Wayne Swan – why did the Government allow the off-shore investors to return without a levy? They should have known what a high A$ would mean in terms of long-term trade and labour costs, and was the reason why the Australia’s resources had lifted the value of the currency in the first place. This mistake has cost the Nation A$trillion’s in lost trade, industry, labour force, and other domestic revenues, and will continue to harm all Australian industry well into the future as we will continue to export jobs offshore. We are not in the same position as Spain, Greece or any other members of the P.I.G.S – but give us time.
The boasts about our 5.5% unemployment is really ‘sock-in-mouth’ stuff … why highlight a weakness and promote it as a strength. For many years long-term unemployed have been shifted off the number and parked in some other category … the ABS numbers come from sampling and have done so for many years. If anyone understands the sampling methodology then you know that the error margin in regional areas is very high. This all gets us to the Welfare spend – the ‘third-rail’ of all politics – you ride it at your own peril as President Jed Bartlett put it – [West Wing] …
Crazy to believe right – how can an ALP Government spend less on Welfare than Howard did? To get to that answer, the Budget Accounts requires a lot more research. Where else could the Rudd/Gillard tenure spending be hidden in the accounts … that and more information will be forthcoming in another post. Now to the nominal GDP verses real GDP explanation. Nominal GDP v Real GDP: Who out there understands Treasurer Swan when he gets a ‘gimmick’ study from his Treasury baboons to explain away the point he is trying to make. read what Wikipedia has to say about Nominal GDP -
Here is a YouTube clip to help you understand - In Principal it’s part of a card shuffle number crunchers use to confuse the audience when numbers don’t give you the answer you want. This was Wayne Swan’s explanation … [the GDP explanation begins near the 5min 30sec mark.] I counted 50+ outright lies Swan told to cover his mistakes and incompetence. The lies are subjective if we use the ‘nominal’ verses ‘real’ argument … Blaming the high A$: Swan uses the high A$ value as a reason for revenue writedowns – yet the A$ has been well – some 40%-50% above its mean average – [A$0.75c v US$] since the float in 1983. No Government has used the value of the A$v as a reason previously – yet it has been at these levels for over 10 years … it is desperate in the extreme to blame revenues when they have actually grown at 7%+ in 2012-13 and above trend of 6% since 1996. The 2012-13 forecast revenue growth at 25% to cover the expenditure that had to be funded to allow the Government to bring its forecast budget surplus in when they announced the 1012-13 budget in May ’12. Blaming the Treasury Forecasts: Yes – that’s right – the Government knew in May ’12 that it was selling a budget that misrepresented the facts. The Nov ’12 review revised it ever so slightly – and four months later is was a $12 billion budget hole, and now it is a $17 billion budget hole. Treasury don’t make these mistakes – or are we to believe that the $11 billion black hole they found in the Coalition’s 2010 election policy initiative might have been equally wrong. It raises more questions then it answers. Are the Treasury ALP stooges … are they prepared to ‘cook’ the books for political outcomes? Truly legitimate questions now that the modeling used to predict the surplus has proved to be so horribly wrong. No matter who the Government, i.e. Swan, Wong, Bradbury, and any other MInister or spokesperson sent out to sell and gift the media the next story in this crumbling facade – the reality is that Government’s lock in spending via policy’s they make to win elections. Been happening for 40 plus years. The revenue side of the equation comes after the fact and if they screw-up the economy then we get to where we are now. The high A$ has cost Australia $trillion’s in trade, revenue, GDP growth, and many other connective opportunities over the last 10 years or so … yet no one thought to think about currency intervention to protect the economy – hell they still think it is wrong to do so despite RBA Governor Glen Stevens comments made when he announced the .25% interest rate reduction this week – see comments here. For the educated observer and some who understands logical argument – Swan has no creditability, nor any entitlement to be a Treasurer. His baboons beneath him are appointed on the basis that are not allowed to be any smarter than Wayne Swan. In fact that type of hiring mentality is across all the public service hiring policy. It’s the reason the asylum has been taken over by nutjobs – nobody has a clue from the top down. Abbott and Hockey have their work cut out because in matters of finance – they hold no better credentials that Swan or any other of the current bushranger pack. You have to be able to trust the Treasury modeling if in fact it is not doctored for political outcomes. For Treasury to have got it so wrong creates a smell that just won’t do away. Was Gillard’s forcefulness and commitment to her agenda of spending – when stacked up against a choice for the bureaucrats to either do what I tell you to do, or find another job, the reason they are being blamed for getting it so wrong? Support argument comes in the fact that the Public Service offers very generous perks and the like – and rather than lose those benefits, senior bureaucrats and the like shut their mouths and do as they are told. It would seem that integrity, or the standing up for what you believe in is no longer regarded as a personal quality required to work in Government anymore. Another piece of advice for Mr Abbott – sack every Department head and three rungs down when you take office – hire people from the private sector on MP parliamentary ‘base salary’ levels and offer a bonus to those who get the job done. Use the – ‘Serve your Country’, or ‘your Country needs you’ motif to sucker some high flyers in to give back. I don’t see it happening – but you can only try to improve the collective brain value of so-called experts in the Treasury. The next Guru post will be about the Budget Expenditure breakdowns … |
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EYE-BALL’s Guru on – Wayne Swan’s “Treasury Mistakes” – Heads must roll – Swan and Bradbury must accept responsibility’ -
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| Latest GURU Posts:
- 23rd Apr – Wayne Swan’s – “Investment pipeline” - disappearing before his eyes – where does he go for his next ‘bunny excuse’ - - 21st Apr – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot - - 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - To see more GURU posts: – click here … |
Title: - Wayne Swan’s “Treasury Mistakes” - - Heads must roll - - Gillard, Swan and Bradbury must accept responsibility’ - | Author: EYE-BALL Guru | 29th Apr 2013 | |
The Government made a conscious decision in the aftermath of the GFC and took liberty with fiscal policy and used employment as the trigger to allow themselves to let debt escalate. The Nation has not arrived at it’s current financial abyss without a collective brain’s trust failing. Working in the background feeding the Budget forward estimates up the ladder to their political masters are the Treasury bureaucrats and their yuppy underlings – all with starts in their eyes and willing to do the bidding of any taskmaster. The question has to be asked about in the way these subordinates go about their business and do their best for the Nation – which came first – ‘the chicken of the egg’. This is the crux – who feeds the pony? Do the bureaucrats have a responsibility to the Nation that separates them from the political will of their masters – or do they protect their careers and appease the political masters at the expense of the Nation – The forward estimates have been way off target for years … who fudged the forward estimates based on a dodgy MRRT revenue expectation? Who relented under Gillards pressure to spend her way to her own agenda? Politicians formulate policy and throw the ball to the Treasury to find ways to fund and cost the policies and deliver accurate forward estimates. It is only then that a Government should consider the policy and its impact on the economy. The question is not whether the Treasury fudges the forward estimates to give the Government the news it wants to hear – it’s about Treasury staff being incompetent to understand the modern variations of economic measurements and not understanding the MRRT policy impact, or the Carbon Tax forecast against a carbon price underpinned by the European carbon price. Sadly – this Gillard led Government has had stars in it eyes from the get-go … Gillard was in a rush as all Labor Government’s tend to be. Gillard had the Rudd GFC response to build upon and she and Swan continued to use the GFC excuse to push new expenditure policies believing the Debt/GDP ratio comparisons allowed Australia to continue with the spending. History has now shown us that that spending was not needed as China handed Australia an economic lifeline. If the truth be told – Australia’s GFC fallout was postponed and awaits us downstream. China will not be there to bail us out a second time as resources are now off the boil and aplenty, other Nations are coming on stream and are much more competitive than Australia – China will do what is best for China. The $300 billion debt created by successive ALP Government’s since 2009 have fueled GDP growth and propped up the private sector. The single reason for Australia’s uncompetitiveness has been the continue lack of response for the RBA and Government to enact measures to weaken the high A$. So much so that the damage done to our export industries has been by and large overlooked. The high A$ is the sole reason for our nightmare if anyone is looking for a pivot. Swan thinks it a good thing, but then he does not understand the $trillions of lost export revenue over the last 10 odd years. This single offset to what should have been Australia’s most profitable mining boom was diminished because the rest of the world invested in Australia and took all those profits offshore. Only idiots could allow this to happen and Howard and Costello were equally ignorant of the undercurrent happening in global investment from the early 2000′s. Treasury and RBA are the most to blame because they serve all Masters – they should have been advising and readjusting the forward estimates on growth and reduced export earnings all as a result of the hig A$. They were grossly incompetent and deserve every criticism they have coming their way. Treasury created a complete misread on revenues and expenditures right across all the forward estimates. The Government also allowed itself to use it’s own policy expectations of forecast revenues from the ‘Carbon Tax’ and the ‘MRRT’ to hedge their bets on continued spending for their new policies. In real terms – the Government spent before it could confirm the tax collect. This was a decision Gillard and Swan made as a collective to initiate policy’s that would paint them in a better light. Gillard gambled again and has been caught out – just as she has gambled on the AWU scandal never coming back to haunt her. Since that abandonment in Dec ’12 – the excuse used has been reduced revenues. Any economist or financial commentator can used the budget numbers and extract the hard data and disprove this Government excuse. See the table and chart below to help … or click here to see Table and Chart in a new window now. In recent weeks Swan tried to change the excuse – he changed the message and it became about the high A$ and its direct responsibility on the revenues. This was a more plausible argument and should have been where Swan and Bradbury and all the other Cabinet minions went with their message last December. But alas it did not gain traction and the original ‘revenue writedowns’ has again be installed as the excuse message. Confirmation of this came overnight when the Government leaked there has been a $12 billion ‘black-hole’ caused by revenue writedowns. Hockey explained later that the $39 billion increased revenue over and above the 2011-12 number will now be a $27 billion increase – still an increase of 7.6% and well ahead of the average year on year increase in revenues since 1996-97. This leak followed up by an official media address is a deliberate and well-tried strategy to soften the media and electorate. We can expect more of this in the lead up to the budget speech due in a fortnight [14th May]. The tactic is predictable – if its bad news – deliver it in small doses, if its is good news – do it with panache and flash … A full text of Gillards speech today is produced below: [critiqued with Guru comments ...]
It was lengthy and I apologise about that – but you had to get the bullshit context in the message and I did not want to allow for ambiguity. If one was to go trough paragraph by paragraph, point by freakin point, lie by lie – we’d be here for a long time as critiqued above. However – Opposition Treasury spokesperson Joe Hockey came out and gave one of his best response comments ever – watch video of his response here … [A full transcript of speech is not yet available.] One cannot count the lies masked throughout Gillard’s lengthy address – the biggest lie was again the reason for the revenue shortfalls. If a Government uses forward estimates based upon unproven new taxes – [i.e. the MRRT and Carbon Tax] – and uses that forecast to spend in the current and next years budget, the Government deserves to be punished for the fallout. More importantly – the people need to know the truth. Gillard has not had reduced budget revenues – she has over the last three years had revenue increases year on year amounting to:
This is against an average of 6.98% growth in revenues year on year since 1996-97. Any attempt to tell it different is criminal in its intent. Company Directors would face court and jail terms if that tried to hoodwink shareholders with a lie and misrepresentations like this. This outrage once again shows how Members of Parliament are at the bottom end of regulatory policing – it shows just how little private sector experience they have and how that inexperience gets the Nation to the position we are now in. Gillard used a illusionary man named ‘John’ to help paint her analogy to explain the Government’s predicament – it was all spin and polish based on a cover-up to blame the economy and GFC for the reduced revenues. Her speech writer is a novice and also does not understand what it is they do not understand. In an exhaustive extraction of RBA Budget data the following Table with Chart provides hard data of revenue and expenditure growth (%), and in $dollar terms since 1996-97. [Click on Image to enlarge in a new window.] In coming days economists will all have their say – and they have their political sway that will dictate what they write – what is published here is done so without such malice but an exposed truth. Gillard is a criminal and that is my gripe – how she became the Prime Minister is what I want someone to explain given her history … Australia needs to know that truth as well … |
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Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
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EYE-BALL’s Guru on – Wayne Swan’s “Investment pipeline” – disappearing before his eyes – where does he go for his next ‘bunny excuse’ -
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| Latest GURU Posts:
- 21st Apr – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot - - 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - To see more GURU posts: – click here … |
Title: - Wayne Swan’s – “Investment pipeline” - - disappearing before his eyes - - where does he go for his next ‘bunny excuse’ - | Author: EYE-BALL Guru | 23rd Apr 2013 | |
Swan continually mentions a figure of $500 billion over the last 2-3 years as the value of the ‘pipeline investment’ lined up to get their hands on a piece of Australia. Those who understand true economics have doubted Swan’s prophecy based on escalating labour costs bought on by the continued high A$ value. Many have told Mr Swan that to rely on this so-called ‘pipeline Investment’ is to play casino with Australia’s financial future. Being the idiot he did and does not understand what it is he does not understand … Swan’s excuses for his budget failings continued ad nauseum relying on the ‘Treasurer of the Year’ gong to convince people and his own party he knew what he was doing. Swan’s legacy as th e ‘worst Treasurer ever’ will ensure Australians will forever think of Swan as the idiot who allowed the rest of the world to hook up their backdoor syphon hoses and rip honest wealth from all Australians – Swan and his RBA clowns have stood by and clapped them as they did so – and all to a need for him to remain internationally popular and have someone to talk to at G-20 conferences. Idiot’s like Swan rarely get to serve in such a high station – and Australia will regret it for a hundred years. Reported today is another $2 billion mining project that has been mothballed – read the story here - A list of mining projects that have been scrapped in recent months – (as reported in story above) – include:
Then we have the oil refinery closure/sales:
What about the Auto Industry and Government funding received to keep it afloat -
Then there is the Manufacturing, Tourism, Agriculture, and Retail industries where job losses in recent years are in the 10,000′s … perhaps even higher … these job losses throw plenty of scepticism at the un-employment numbers and how the Government is hiding the ongoing job losses. Estimates have Australia’s true unemployment rate in the high teen’s. Previous posts on the unemployment, part-time verses full-time job creations, and the monthly reduction in hours worked – linked here – prove that there is a slow decline in full-time work availability, and an increasing workforce participation where employees are working more than a single job to try and make ends meet. See EYE-BALL Guru story here – Table of Employment growth reproduced below:
When are Treasurer Swan and the rest of the Government Caucus going to wake up and realise Gillard’s socialist agenda is doing untold harm to Australia’s future prosperity, and condemning future generations to a poverty driven lifestyle. Quality of life is already in decline with workplace health related issues, like stress, overworked, relationship breakdowns, and the like all on the rise. Employers expect more for less and the demands being placed on the workforce to prop up the Government spending programs has a doomsday scenario. Swan’s ‘JOBS-JOBS-JOBS’ mantra has come with a Federal Government debt explosion growth of some $300 billion, and the idiots in charge believes it is all OK … Swan wants a blow job from every Australian as thanks for what the ‘Treasurer of the Year’ has achieved. Swan sees no wrong here … he trusts his advisors, the Treasury and RBA bureaucrats who tell him what a good job he has done – and RBA Governor Glen Stevens has just been rewarded with another three-year appointment for the blow Job he gives Swan every other week. The dyke is leaking and Swan’s attempts to stop the carnage will fall to the next guy. Swan will ride off into the sunset with Gillard and her ‘handbag’ brigade all drinking pina colada’s, hugging and rejoicing with one another because they get to walk away from the mess left behind. Anybody who does not understand the criminal intent here is equally complicit – ALP supporters who do not want to open their eyes is equally responsible. The Independents Oakeshott, Windsor, Wilkie, and now Slipper and Thompson who sit amidst their numbers are the most serious of offenders … they could have called an end to this carnage at any time but have elected to keep Gillard in power. From Windsor’s position, he is the most guilty of personal vengeance and selfish perspectives – he has never forgiven the Nationals for what they did to him and that grudge has ruled his heart during a time when he helped hold the ‘balance of power’. Windsor does not deserve to be treated well by history, but equally to blam for allowing the mess Gillard has created. Oakeshott is similarly afflicted – he and Windsor often speak about the magnitude of legislation passed during this parliamentary term – the issue should be about the quality of the legislation, not the quantity – and this Government has failed miserably on all its major policy initatives like:
Every one of these policies hs not been funded or had the revenues in place before they were legislated … If our elected Leaders understood the collective pressures these policies would place on the budget, as opposed to accepting Swan’s assurances of the funding in place, they would perhaps of asked more questions. There is a lesson here to be learnt by everybody – minority Governments never work – the trade off’s in obtaining the votes is dangerous and always open for abuse … if one was to truly count the spending in the Independent electorates over the course of the Gillard Government – how would that spending stack up against other Coalition electorates? Last night it was reported that Gillard, Swan and Wong are now advocating a view that – ‘now is not the time to cut spending, but a time to match new funding with savings’ … see David Uren story here - Unbelievable … this new austerity concerns is as false as Gillards morality and all a part of a new McTurd [McTernern] election stunt … |
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EYE-BALL’s Guru on – Wayne Swan’s legitimacy – He Says … ‘high A$ causes $7.5b hole since Oct ’12′ – He’s a unique type of idiot -
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- 14th Apr – The Debt Clock ticks … Tic Toc … – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster - - 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - To see more GURU posts: – click here … |
Title: - Wayne Swan’s legitimacy – He Says … - ‘high A$ causes $7.5B hole since Oct ’12′ - - He’s a unique type of idiot - | Author: EYE-BALL Guru | 22nd Apr 2013 | |
This boofhead of all the boofheads who served as the Australian Treasurer, and there are only a few who don’t deserve the tag, has stated publicly that the high A$ value has impacted on the current budget to the tune of $7.5 billion. Only an idiot with supreme lunacy would try to tell the Australian public such a fabrication. To believe the realness of Swan’s comments – see ABC story here … To highlight Swan’s lunacy even further look to the charts below … Chart 1:
The mean average for the period of the above chart is A$1.0391, and by comparison in Chart 2 below, the mean average since the A$ was floated in late 1983 has been A$0.7535. Swan wants to argue that a $7.5 billion hole in the 2012-13 budget because of the ‘high A$’ as demonstrated in Chart 1 above. The chart shows a high and low of +/- A$0.2000 over the period … The evidence proves Swan is completely wrong and so far out of his depth trying to explain his budget shortfall. His revenue writedowns has been his excuse since the surplus backflip in Dec 2012 – now he is using the high A$ value … both are completely off the mark … The Chart 2 below shows the A$ v US$ since 1998. A question some financial journalist should ask Mr Swan is ‘what is the total cost to the Australian economy since 2001 where the levels of the A$ were sub A$0.50c … More importantly … why has the RBA and successive Government’s and their Treasurer’s sat back and allowed the rest of the world to rape and pillage our economy through a high A$ policy? Chart 2:
To not make too finer a point – Swan states that in a range of $1.01 to $1.06 in the space of six months, the budget impact was $7.5 billion. In a logical context … a rising A$ range of A$0.47 – A$1.10 over 14 odd years, with a mean average of A$0.75c since the A$ was floated, would equate to what cost in Government revenues … and that my friends is an equation that Treasury will not tell you … the answer would make all Australians cry. Costello and Swan with aid from a vintage thinking RBA have cost Australians trillions in reduced A$ receipts from exports and all the commercial benefits of a devalued A$ … yea that’s right A$TRILLIONS … This is the greatest asset strip from a Nation in a so-called peacetime environment … and done in full view of supposedly smart and savvy people … our Treasury bureaucracy needs a staff cleanout and restaffed with people who understand modern finance and the global economic marketplace. |
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EYE-BALL’s Guru on – The Debt Clock ticks … Tic Toc – Gillard just spent another $3,000 – counting the real cost of this ALP Disaster -
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- 5th Apr - Superannuation 2013-14 - the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity - - 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - The Debt Clock ticks … Tic Toc … - Gillard just spent another $3,000 - - counting the real cost of this ALP Disaster - | Author: EYE-BALL Guru | 14th Apr 2013 | |
This Gillard led Government has debt as its legacy, and a hatful of policies that have not worked. To help with the measure the Australian Debt Clock – linked here – is a must see presentation of ann Australian debt, both public and private. The Global Debt Clock is also interesting – linked here … some $50.5 trillion is owed around the world – with a global population of 7.1 billion – source linked here – that means we each owe about $7,000. Australia’s Public debt totals $466 billion – made up of $272 billion [Federal] and $194 [States], against a total public and private sector debt of $4.5 trillion. That means every Australian owes $205,000, some 30 times the global average. Debt is responsible for all the globes current economic problems. A bit like saying religion is responsible for all wars. Remember – ‘Greed is Good‘, out of the 1987 Oliver Stone produced ‘Wall Street’ – it was Gordon Gecko’s famous catchcry and definitely representative of the times … in fact it never went away despite the ’87 crash and beyond. As the Corporate world became more prudential post ’87, Western Governments stepped up and filled the void of debt issuer’s and it continues today. When Governments owe so much, and the interest cost on the debt owed has the capacity to break a Nation, i.e. the EuroZone P.I.G.S. and more to come, what vested interests ar at play to keep interest low to protect budgets. A 1-2% rise in interest rates around the globe and almost all the Eurozone goes to the wall – America goes over the cliff much sooner then its current timing has forecast, and Swan and Gillard ride off into the sunset cheering along with their Union mates saying – ‘it’s not our problem now!’ When you put nutters in charge of the finances what else can you expect? We the voters are to blame … we are so easily duped … this ‘red’ or ‘blue’ personality disorder in the way we think about electing our Leaders is so unrepresentative of an educated population … why can’t people seek out the truth rather than rely of others to tell it to them. Idiot Swan posted this on his Facebook page yesterday – linked here …
Guru posted the following response …
What a waste of energy reading the conversation thread that preceded the comment … how is Swan allowed to lie so openly … and why are people so gullible so as to defend Swan when they have no idea whether what he said is a falsehood or a misrepresentation … we truly are a numbed Nation and deserve everything we are served up with … Liken it to a trip to the zoo – yea that’s right … we are the animals and it is the Politicians walking around throwing us a few peanuts, pointing, laughing, and saying how dumb are these animals to take the crap we feed them. … Read on … you might just be convinced that there is a problem … Gillards Spendathon: This Gillard/Swan Government have spent some $3,000 a second, some $190k a minute, $11 million an hour, and some $275 million a day every day for the last three years – i.e. {$300,000,000,000/3/365/24/60/60} = $3,171… - it’s been a spendathon without peer in this Nation. Where is the visible value in a $300 billion spend – where are the policy achievements, what do we have as a by-product value from this new debt creation – can anyone see any real tangible benefit? Swan has been the facilitator and Gillard the deliverer of ill-conceived policy that has no accountability. Together they make Bernie Madoff look positively tame. This ‘PONZI’ spending Government has no idea where they will get the funds to pay back what they have wasted. It will fall to future generations to pick up the pieces and that is a legacy no one can be allowed to forget. The legacies of good Government are long remembered by historians, whereas the memories of bad Government are most reviled and forgotten in the short-term. Ridding ourselves of bad Government is an election privilege and ridding ourselves of this horrendous minority Government experiment is something we are all gasping for – the sooner the better. Always – a bad Government leaves behind a string of expensive and unworkable policies that have to be fixed, un-legislated, or rewritten. And then there is the debt overload bearing down on all of us. Gillard – someone who openly admits she struggles with finances not remembering who deposited $5,000 to her account whilst she worked as a lawyer at Slater and Gordon … Gillard is responsible for the greatest fraud ever committed on Australian’s in our history. When the performance of the Rudd and Gillard Governments are put into any true perspective, the most mitigating reasoning will surround the GFC and the management of the economy in and during the crisis. Rudd had cause to be concerned about preventing en economic crisis – yet in 2010 when Australia’s performance beat all the forecast doomsayers – Gillard unseated Rudd and implemented her own socialist agenda spending programs using the GFC as a reason to continue pumping the printing of money. The EuroZone crisis was upon us all and given what was happening to Greece and the other P.I.G.S. Nations, Australia was always insulated because China kept our mining and resource boom alive – why was there need to continue the spendathon after we escaped the worst of the GFC? Assessment: – An abysmal failure … The MRRT: As Gillard realised she needed funding to pay for her spending agenda, new taxes – i.e. the Carbon Tax, and the revised MRRT – were introduced.
To appease the miners and resolve the dispute over the original MRRT that made Rudd unpopular, Gillard went looking for ways to appease the miners and caved into their demands to lessen the impact of the MRRT, giving her a shot at winning the impending 2010 election. This Gillard/Swan school of economics and responsible financial management has proven to be an unmitigated disaster. They could not balance a balloon flight – misjudging weigh ratio with air temperature In the three years since 2010 where they guaranteed a budget surplus in 2012-13, they have proved they have no understanding on how our economy works. The original MRRT forecast was $5 billion, revised to $2 billion, and the reality is a poultry $130 million collected in the first 8 months. Whoever the bureaucrats were who produced the forward estimates – unless they can claim they were acting under instruction from a Swan directive to fudge the numbers, they should be sacked for gross incompetence. In fact – the reality has been that the ‘mining boom’ in A$ terms has been over for a number of years – the returns for our resources have diminished some 30-40% yet the volumes shipped are ever-increasing. This is not good for Australian’s or for the future. Prudent business’s often hold back selling their produce when the returns offered diminish. Some of these miners are dependent on off-shore funding i.e. FMG [Twiggy], Clive Palmer, and the like and are locked in on delivery contracts that impact if not met. Yet who owns the resources? The miners only hold leases to mine the resources and pay a royalty to do so. The people of Australia own these resources and the Government [State] hold them in trust on behalf of the people. The Feds want in on the so-called ‘boom’ times, but it is just an easy cash grab with no real thought to prudent business practices. If the returns on our resources are not at a premium, why does the State Government not raise royalties to discourage their sale? Easy answer – the State Government’s can’t do without the revenue. How fu_ked is that – Government’s are so desperate and dependent for any revenue source. The Federal Government’s MRRT is such a pox tax – if the intent was to offset the high A$ value and its impact on A$ revenues – one could see merit, but it was not. It was a tax grab in direct competition with the States and signaled an intention to mess with State Government revenues on a larger scale. All that was promised with the revenues the MRRT would raise is now in the toilet – reduce Company tax, superannuation to 12% … etc … Gillard and Swan stand before you with egg all over their faces and yet they still claim creditability in how they have managed the economy. In fact, Federal and State Governments are heading for a show down over revenues. They are all in the markets competing for and pressuring corporate borrowing costs to fund ongoing and new debt. They don’t realise it but they are killing the mining industry to the exclusion of all the other industries compounding under the impact of the high A$ value. If the Federal and State Government’s had any concerns over the reduced returns these natural resources are yielding – they would impose additional royalty tariffs to offset the currency impact and try to protect these resources and save them for future generations. But when RBA’s advice is that they don’t see the A$ as overvalued – what can be done.
Swan, Bradbury, Stevens, Lowe and the like know this and rather then act to correct the continued wealth transference off-shore, they all lie to protect themselves and their incompetence in managing a global assault on the Australian economy. We are losing the global economic WAR and the resources being pumped and stripped to far off lands only to have the value added product imported back to Australia at a huge premium. Assessment: – An abysmal failure … Treasurer Swan and RBA’s Stevens at odds: In recent days RBA Governor Glen Stevens has gone public over Treasurer Swan’s renege on a promise to leave RBA profits alone to shore up capital reserves – see story below:
This Steven’s ‘pissed-off’ story has been about for several months and continues to gain traction on the back of Swan’s desperate needs for budget savings. This is a serious issue – the $2.4 billion RBA reserves, down from $6.9 billion in 2009 is hardly a solid stake to play the global currency game. To expect the RBA to manage the global risk exposures on a $80 billion book of assets with a $2.4 billion capital base makes a complete mockery of prudential risks. The gearing ratios involved here go far beyond those considered acceptable for Commercial Banks and the like. There is no wonder the RBA does not intervene in currency markets to stem the high value of the A$. The RBA is broke people, and the Government does not understand what it does not understand in what the true nature of the RBA’s position represents. Having lost $4.9 billion in the 2011-12 year should signal to the Government the risks involved – with a poultry $2.4 billion left – the $500 million Swan wants to take shows how desperate he is, and more importantly how little he understands financial management. That $500 million is a days revaluation, for a Central Bank to be operating with so little capital reserves already puts us in the ‘third-world’ category. An IMF policy paper published Feb 2011 on Central Bank Balances and Reserve Requirements – linked here – gives reasoning and effects on managing and mis-managing Central Bank reserves. Swan should be shoring up Central Bank reserves rather than looking for ways to strip funds to balance his budget – is ‘dunce’ too strong a word? Assessment: – An abysmal failure … Financial Management – Budget Control: The size of the budget forecast for 2013-14 being put together now is already being mooted to be another large deficit, as will the next four (4) years of budget forecasts. Given the creditability swan dive this Government suffered over its 2010 guarantee of a ‘surplus’ for 2012-13, and now looking to be close to a $25 billion deficit, Treasurer Swan’s personal creditability with remaining Caucus members hangs by a toenail. The poll indicators show he is on track to lose his own seat of ‘Lilly’ in metropolitan Brisbane at the upcoming election. Will that really be enough to reflect Swan’s true incompetence and the ‘debt’ legacy he will leave for the next Government to try and fix? Swan will live the rest of his life with a guaranteed pension around $175k per year with additional parliamentary perks to top it up. Swan will be allowed to walk away and pay no dues for the legacy he will leave behind. Assessment: – An abysmal failure … Labour Force Costs and the Global Economic War: There is a global ‘WAR’ now being waged – now a military war as most of us understand – but a ‘financial and economic war’ that plays itself out on the global markets. This market place trades in labour costs, returns on investment, political stability, economic management, and currency value, all contributing and impacting on the global investment community and the choices they make. Australia’s domestic employment as seen from within seems normal – yet from an overseas investment perspective it is high risk. Australia have priced itself out of the global labour market and that means 100k’s of job losses in coming years. Gillard and Swan keep talking about ‘jobs, jobs, jobs,’ and they have backed it up with a spending program that in effect subsidised wage costs. Even this has not stemmed the flow of corporations now relocating workforces off-shore because of the cheaper labour costs in doing so. Australia is at the top of the ‘labour cost’ market. Australia has become the most uncompetitive place for investment – a historical high currency, an unstable Government, an escalating Debt/GDP forecast, an absence of restructuring programs, and a labour force unionised under a Gillard led Socialist Government intent on a blinkered protectionist policy’s. Treasurer Swan carries in his back pocket a list of ‘investment pipeline’ projections that he keeps telling us is some $500 billion. He pulls this rabbit every time he is cornered over his broken promises. He trumpets this ‘investment pipeline’ rubbish trying to convince us we are the envy of the world. They envy our climate most of all you dumb fu_k. Assessment: – An abysmal failure … Currency Wars: The shock awaiting us all in coming months will be a ‘flight of funds’ as the rest of the world realises the party they have been celebrating on Australia’s dime has run its course. This flight will hopefully correct the A$ and take the pressures off our labour force costs. It is something we should all wish for … Woodside announced through the week the cancellation of their $45 billion Gas project that was on Swan’s list. Shell announced the closure a an oil refinery mid-week. Ford and GMH have put the Government on notice they need more subsidies to keep the auto industry producing cars in this Nation. Tourism operators and staff are deserting the industry, housing has flatlined, manufacturing is moving off-shore, Telstra and several other customer service help lines have already moved off-shore – and as quoted above by Glen Stevens in an address he gave in Jun 2012 to the Prime Minister’s Economic Forum – see below for extract:
The timeframe span will take some 20-30 years before any assessment of performance will be truly judged. For those of us who know better – subjective judgement can and will be delivered as reflected in the September 2013 election, or not sooner. Assessment: – An abysmal failure … Forward Estimates: One thing can be said of the John Howard and Peter Costello 11 years of Government, they left Australia in financially better shape than at any other time in political history. Since – and under successive ALP Government’s for the last six years, Prime Minister’s Rudd and Gillard have created destruction across all the forward budgetary estimates. They claim it is because of revenue shortfalls. Yet the spending programs have accelerated at blinding speed based on new taxes introduced that have failed to produce revenue estimates. You measure any financial situation, if you were to spend the projected incomes before the incomes materialised – that would create debt right. Well when debt is accumulated and the cost of that debt increases and the revenues still don’t arrive – what do you think a prudent Banker would do? For starters the Banker would not have lent the money in the first place any anything like a prime rate cost – there would be risks. The head of those risks would be the creditability and track record of the clients, in this case the ALP Government. There is no assessor to these spending programs other than the Treasury bureaucrats putting together their numbers on forward estimates to support the public policy legislation. Cooking the books is a criminal offence in the Private Sector – anyone loading up a prospectus with forward estimates known oto be unachievable will go to jail – regardless whether it was done knowingly and with vested interest motives. PM Gillard, Treasurer Swan, and the whole of Cabinet are responsible for the so called budget ‘revenue writedowns’. Let us call it by its true assessment – ‘complete and utter incompetence’. In addition – Finance Minister Penny Wong is out there telling us all about the reasons why the budget will continue to run at deficits for the next four (4) years – read below:
This horse has bolted and the Gillard Government is intent on blaming everyone but themselves. What reputable Treasurer, one who had the title as ‘Best Treasurer in the World’, would not accept their responsibility for getting their forward estimates so horribly wrong? Gillard herself is most responsible as a ‘shopaholic’ type spendthrift – she can’t help herself in front of a microphone – she just has to promise more spending so the crowds will cheer. Her Cabinet has the same disease and as they try to make Australia a socialist regime their intent cannot be misunderstood. Three years of Gillard post GFC spending has seen some $175 billion of new debt, and the promise of another $100 billion or so of future debt. Where is the revenue forecasts to balance this expenditure – oh … that’s right – the forward estimates can be blamed. The problem with Federal, State, and Locally elected members who have no financial creditability or understanding – is they can lead you over a cliff in a very short space of time. Ignorance or stupidity can never be the excuse, yet that is what is demonstrated time after time … look at some of Treasurer Swan’s response to a simple questions about economics and finance when asked … [Nov 2008] … and again here … [5th Mar 2012] – make sure you count the times Swan obfuscates over the question and does not respond directly …he really is a poor performer in front of a camera and when speaking without his graphs and script to work from. … and if you want to spend more time watching Swan make a fool of himself, check out the collection at this link … All highlighting the fact that Swan is no natural financial wizard … he has no clue just how bad he really is … Assessment: – An abysmal failure … Financial Management – Currency: Global conflict has been a historical precedent for 1.000′s of years. It is not always a military conflict in traditional terms. In modern times we’ve had the ‘Cold War’, ‘War on Terrorism’, and in most recent times we have had a new type of global conflict – ‘currency warfare’, and ‘labour cost warfare’. These are not open conflict where troops are engaged in a traditional sense. The currency war ia about obtaining financial advantage by having a devalued currency to make your output cheaper to overseas buyers. The ‘labour force war’ is about the cost of production and how that impacts on domestic employment against overseas competition. There is no doubt this ‘financial warfare’ has been going on for 15-20 years in a very aggressive way. The concept has been alive and well for 100′s of years happens since the ‘market forces’ concept was born. Supply and demand is the center of the ‘capitalist dream’. In recent times the supply part of the equation is governed by who can supply the goods at the cheapest price. The demand follows the supply costs and whoever controls that cost base productivity controls the demand and the margins of profitability. Add to this basis capitalist greed a currency market that in a free market would reflect the supply and demand equation – the relativity of a balanced global economy would be much fairer. However – we have those who enter the market with intent to manipulate their currency value for the purpose of gaining an advantage over all the other suppliers. Now add to that the might of military power and a population almost 4-5 times that of their main competitors, and a labour force stuck in third world living standards – you can see why the Western World is in a manufacturing quagmire, and unable to compete with the Asian presence. There have been mumblings about China and their pegged to the US$ advantage. Nobody can do anything about it unless China want to feel generous. Does China have reason to want to be generous – other than a complete meltdown of the capitalist network if they don’t look to share – history would indicate that the West have plenty of reason not to expect unconditional favours from China. Now we come to Treasurer Swan, previous Treasurer Costello, and RBA head honcho Glen Stevens. In another speech on currency by Phil Lowe – RBA Deputy Governor – he spoke on ‘intervention’ and how the RBA viewed such action – his comments were reported in part and appear below: link to On-Line Story …
It would seem that the RBA are not overly concerned with the impact of a high A$ value – Stevens and his Deputy are bureaucrats and as such are a part of the problem. They are political appointments as is the make up of the RBA Board. ALP friends and there to serve the cause … When China pegged their currency to the US$ in the early 1990′s it was a master move by a regime with a 200 year agenda. They knew that their biggest asset was their cheap labour. Rather then have them serve as soldiers in a modern war game – they used their poverty to their advantage to beat the rest of the world on production costs and output. Cheap and plentiful labour will always beat competing economies as evidenced in this and every other Western Nation in the last 10 years or so. When the currency trap is added that favours weaker currencies – and the US$ weakness not only helps the USA economy, it keeps China so far ahead of everybody else, the rest of the Western world is fighting over the scraps left behind. Yes folks – it is a War, a war of a different kind that will see populations turn on themselves as poverty bites … it’s a genius plan and the knots are would so tight with the over burden of debt attributed to Western Governments now fixed to the anchor dragging them all over the abyss … it is only a matter of time … and then China may have won a victory – but they will have no one left to trade with and they too will implode and that will be the ball-game. It might take 50 years but that is small time scales when you think about history … Assessment: – An abysmal failure … Summary: Do you think Treasurer Swan or any other Politician serving under Gillard has thought this through 10 years hence … thinkers are few and far between in this world and it is a case of ‘shoot the messenger’ from where Gillard stands and surveys her future … She will not and cannot be convinced her time is done … or that she is bad for the Nation. She intends to lead us all over that abyss in some majestic vision she has about her own place in history … What a slapper she is … an idiot with extreme and gargantuan egotistical issues … she has never accepted she did anything wrong in the early 1990′s when connected with the AWU fraud – and ever since she has been driven to try to prove everybody else was wrong to punish her for the way it went down – and this Nation has and will continue to paid the price for her misguided socialist agenda for generations to come. This whole Gillard minority Government hs been: - An abysmal failure … |
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Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
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EYE-BALL’s Guru on – Superannuation 2013-14 – the Government’s new Slush Fund – Proposed Changes show SWAN and SHORTEN’s stupidity -
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- 4th Apr - Australia’s Parliamentary Remunerations - - 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - Superannuation 2013-14 - - the Government’s new Slush Fund - - Proposed Changes show SWAN and SHORTEN’s stupidity - | Author: EYE-BALL Guru | 5th Apr 2013 | |
There should be such a thing as ‘sacred ground’ – something Governments should never be allowed to tamper with. That ground has to be respected and forever be off-limits to any Government looking to tamper with the tax collect. Superannuation by the very ALP definition and reasoning why it introduced the scheme in 1992 has been altered 53 and now a 54th time since the Guarantee was introduced in 1992. Lets take a look at some of the reasoning and process’ superannuation has had to deal with along the way. Post 1992 Superannuation: The charts below – [sourced from Reserve Bank of Australia statistical database series (Budgets)] – will help give a perspective on the Federal superannuation tax collect since 1996. Further research to pre 1996 figures is ongoing along with data requested for the pre 1992 period – this post could not wait … the information contained herein is too important.
The Superannuation Act has been tinkered with for 20 years an now in 2013, Treasurer Swan and Superannuation Minister Bill Shorten have come up with a Gillard inspired socialist platform that reeks of ‘class warfare’, and something they believe will solve all the answers to future retirement planning and needs. This pair of boofheads place themselves as smarter then all those that went before them. What would make anyone believe this new proposal has better answers, better solutions, better outcomes, and is better policy? Macro Superannuation Rules post 1992:
Pre 1992 Superannuation: APRA – [Australian Prudential Regulatory Authority] was founded in the early 2000′s … its primary role is regulatory supervision over the financial markets and players – i.e. [Banks, Merchant Banks, Stock Brokers, Fund Managers, Superannuation, and the like] – who partake in the market. APRA have a broad history in how Superannuation evolved since the 80′s – linked here - and states in part:
If anything is true, then the past 20 years have shown that superannuation was always a work in progress. Swan’s and Shorten’s version delivered today is a continuation of that stupidity. In any market forum discussion on investment – any forecast returns on a 40 year investment/annuity is no sure thing. For example -
The World has no capital left other than pension and superannuation funds – the life savings of a global population left to the mercy of corrupt an inept Governments who for 40 years have lived on the hog. When Gillard says – ‘you can trust us with your super’ … you should be looking for ways to get your super into your own hands and as far away from Government and regulatory oversight as possible. John Howard erred in hindsight when he opened the doors to allow up to $1 million of individual Superannuation contributions in the 2007 financial year. Some $50 billion poured in as reflected by the spike in superannuation tax revenues in the graph above. It was a sign of an economy doing well with debt virtually zero, and budget surplus’ the norm. How Labor and the GFC changed all that … Howard had no prior warning … nobody did unless you were a market operator and ben calling the big thud since 1987 … finally … and an even bigger thud is coming … In addition … the $60 billion Costello and Swan gifted from the taxpayer owned Telstra sale to the ‘Future Fund’ – all to plug a parliamentary superannuation ‘Ponzi Scheme’ – would never have happened had they had a crystal ball to tell them the GFC was around the corner. That is the point – over a 40 year term investment – who knows what will be law and financial security at the end – it’s an absolute lottery to gauge the value of the cost of living in a society 40 years hence – any body who thinks they can is a bigger dunce than either Swan or Shorten. Hell 40 years ago I started work at the Commonwealth Bank – my salary was $2,200 p/a, a three bedroom high set new house purchased three years later cost $31,500. My Bank Manager boss was earning $3,900 p/a. The QLD State Manager on the Bank earned $7,500. The Big Chief earned $10,000 p/a. You work out the multiples – a Bank CEO today earns around $15 million with heaps of additional perks per year. That is a multiple of some 1500 … The same house is valued at $400k – a multiple of 12.7 … It just does not work and for Politicians to stand up 54 times since 1992 and tell you that they are tweaking the Superannuation rules – you have every right to spit in their face. To be honest – Keating sold the superannuation deal in part because he wanted access to the superannuation tax revenues up front rather than wait for the retirement of the superannuant. All the compound investment income that would have be earnt by the superannuant on that 15% now goes to the Government. Any debate on the real tax on superannuation has to factor in the compound earnings the Government now earns on post 1992 superannuation tax it collects. In the extrapolation – linked here in a previous post – the value of an employee working 40 years at an average income of $50k, with a 10% annual return on his super paid fortnightly, the full value before the 15% tax is collected is $2,393,137.85 – see calculation below … [assuming the 9% contribution of salary remains constant.]
Now apply the 15% tax factor and that value diminishes to -
Now work out the compound value on the difference – this will give the compound earnings on the 15% tax paid up front:
This has to make you and everybody else second guess the value of Superannuation and who derives the best dividend under the post 1992 arrangements. Somebody earning the same income average under current tax laws pays $3,572 plus 32.5c for each $1 over $37,000 – a sum of $3,995. If you were to divide the $664,095 from the above calculation by 40 years, the annual tax collect by the Government on your 15% of super handed over represents – $16,600 per year. That is four (4) times the annual tax they would pay out of their regular income – that is the importance of compound earnings … and this and past Governments wanted in on this 20 years ago and have been ripping off Australians ever since. You ask yourself do they deserve more of your funds to pay for wanton spending programs and Parliamentary Superannuation Ponzi schemes? [There might be some holes in the above numbers basis the 10% return, and fortnightly compound factor - however they are in the ballpark and should not be discounted in their reality.] The Government are worse than Bank Robbers – they are robbing your blind and using the law to do so. Swan and Shorten’s New Superannuation Rules announced today are Linked here |
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EYE-BALL’s Guru on – Australia’s Parliamentary Remunerations – Part III – Superannuation – “The Future Fund”
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| Latest GURU Posts:
- 3rd Apr – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ - - 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations - Part II – Entitlements and Allowances - - 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - Australia’s Parliamentary Remunerations - - Part III – Superannuation – The Future Fund - | Author: EYE-BALL Guru | 4th Apr 2013 | |
Continuing the Series – Australia’s Parliamentary Remunerations:
For a long time there has been a desire to dissect and examine the Parliamentary remunerations structure, and the perks attached to being a ‘Member of Parliament, and a Senator – in Federal and at State levels. Superannuation – ‘The Future Fund’: Some interesting data has come forth from a long-term research investigation into Superannuation and in particular, the ‘Future Fund’, and other Public Service Superannuation Funds, namely Federal, State, and municipal. Before we go to the ‘Future Fund’ – I want to put the macro jigsaw puzzle in play and how this research is endeavoring to put the pieces of that puzzle and how it relates to the Australian Public Sector Superannuation landscape. A well respected Financial Markets source in Robert Gottliebsen wrote an article in the ‘Business Speculator‘ published in Oct’ 2012. The story provides commentary about the total ‘$’ value liability of Australia’s ‘unfunded’ Public Sector Superannuation schemes. Mr Gottliebsen’s numbers paint a frightening landscape for Australian taxpayers whose task it will be to donate the revenues to provide for these future liabilities – i.e. Parliamentarians and other Public Servants retirement pensions. His story appears below:
Yip-pity-doh-dah-day – are you now sufficiently engaged and understand how much you and every other Australian owes to our illustrious Political Leaders … $210 billion … maybe up to $250 billion by now … divide that by the 14 million eligible voters and it equates to $18,000 – yes that is right … $18,000 smackaroos is how much each one of us eligible voters owes our MP’s, Senator’s and other leeches feeding of the Federal Superannuation system. This is the mother of all ‘Ponzi’ schemes. It makes all others pale into significance … Madoff’s efforts were kindergarten stuff and they jail him forever … The meaning of a ‘Ponzi’ scheme in the true sense of the word – ‘the future liabilities for present day entitlements’, and how does the Parliamentary Superannuation not fit this meaning. All MP’s and their superannuation like entitlements are to be paid for by future taxes stripped from future taxpayers to pay for decade old superannuation schemes, as legislated and voted for by these same MP’s who are to benefit from the scheme. You – the taxpayer already donated $60+ billion to the Future Fund in 2006-07 when Treasurer Costello handed over Telstra shares and sale proceeds, and again in 2008 under Treasurer Swan when more Telstra shares were handed over. Before these payments were made to the newly formed ‘Future Fund’, the previous superannuation entity only had $123 million in assets to cover the $91 billion liability – hence the ‘Ponzi’ scheme analogy. A statement made in the 2005-06 ‘Future Fund’ Annual report allows speculation and opinion that up until 2005-06 – the Federal Government had not been funding is future superannuation obligations. This in a corporate sense would have been pursued by regulators as criminal intent and a breech of employer employee guarantees. That ‘Future Fund’ statement appears in highlight below:
Very interesting indeed – the comment – ‘has never fully funded‘ – I would ask why The Federal Government would not cover its obligations in funding the Superannuation liabilities of all those covered under the Parliamentary Superannuation schemes – up until Costello and Swan stripped taxpayer owned assets/funds to do so in 2006-08.. Who is a member of the Future Fund: Superannuation Schemes for Federal employees from the Site index above are listed below:
The Fed’s have a superannuation deal where the taxpayers pay 15.4% of their salary as a superannuation entitlement. Whether this includes the 9% employer contribution is still a question not answered. If it is – that means a 6.4% super windfall that no Australian workers can count on. Why not … that is one of my questions – with many more to come. For information purposes to help with what follows -
Linked here is a Government website offering an indexed Superannuation Site map. Parliamentary Superannuation Act 2004: Overview …
The 15.4% employer funded [Unfunded scheme] is by far the best Superannuation scheme in Australia. Why? Early Access to Superannuation Entitlements: How do politicians get the nerve to vote themselves such a generous pension scheme, allowing themselves full pension access from whenever they leave parliament regardless of age. The debate is of course about when an MP is voted out and has to re-establish a career and needs seed capital – you tell me how the public differ when loss of career happens through natural market place events, and often caused by Government policy. Why are they denied superannuation entitlement access yet parliamentarians are? It was reported in a news story that Treasurer Swan would need a private Superannuation scheme with a $5.6 million balance for him to be able to draw his $166k per annum pension. Because he is a Federal politician he does not have to contribute a cent to earn his Parliamentary pension. Does anyone think that fair? [See story link here.] A further story on Gillard’s pension entitlements can be read here … this really will blow your mind in how much the MP’s superannuation is costing the Australian public. Pre 1992 Superannuation: Before 1992 – a great number of employers made tax deductible superannuation contributions to their employees as superannuation contributions. Post 1992 the 3% Superannuation levee was introduced – i.e. award wage increase decisions were used as superannuation contributions as opposed to salary increases. Laws on underfunded superannuation payments: The laws pertaining to under-funding employee superannuation entitlements in the Private sector are quite specific.
Determining what component of the ‘Future Fund’s’ under-funding is a result of the employer employee contribution, and/or the penalty component as reference above is an impossibility. A story published with detail about the Future Funds’s obligations had this to say:
This comment suggests the Future Fund is still some $56 billion short of funding the total obligations of the Public service superannuation entitlements. In an extract from the 2011-12 Annual Report background the following is claimed: [Page 11 of Report.]
Again referring to Robert Gottliebsen report above – his report of a $91 billion ‘Future Fund’ shortfall refers to the gap from the start balance of the transferred funds to the Future Fund in 2005-6 of less that $200 million, and the outstanding liabilities. In the first year of the ‘Future Fund’s‘ operations the Federal Government handed over $18 billion in May 2006, the June 2006 balance date showed total assets of $18.163 billion. Another $22.2 billion in cash was transferred in 2007, along with 8.1 billion Telstra shares worth $8.9 billion. In 2008, another $10.9 billion in cash, and 57 million Telstra shares worth $309 million was transferred from the Federal Government. This made the total Federal Governments cash contribution a total of $51.3 billion – and the share value of the Telstra stock valued at $9.209, totaling $60.509 billion of taxpayers funds was used to part fund the 2005-6 underfunded estimated of $91 billion. There is irony here – politician’s voted themselves these very generous ‘unfunded’ superannuation schemes over time – they chose not to fund the scheme to its obligations on an ongoing basis, and then when a few Politicians get a little nervous they might miss out and their change of career entitlements – they legislate to strip taxpayer funds to cover the liability. The Howard Government had control of both the Upper and Lower Houses, and this allowed them to push through this legislation. Was it an abuse of the political position the Howard Government was given? Some $60 billion of taxpayers fund used to provide retirement pensions for so few Federal Government employees. Would it have happened if the Senate was not controlled by Howard at the time? Did it have bipartisan support? There have been no more funds transferred to the ‘Future Fund’ since the 2008 transfers. The 2005-06 establishment of the ‘Future Fund‘ was only about addressing the Federal $91 billion under-funded problem. The States and Local Government Superannuation form the balance of the $210 billion Gottliebsen talks about in his article above. [Note: The $91 billion is a Federal 2005-6 estimate - the 2007 $136 billion used in Gottliebsen article above is an unconfirmed number - as is the 2011 $210 billion number.] Is this not frightening – some $210 billion – that is 80% of the total Government debt owed at the moment – the $210 billion could be as high as the current $265 billion Federal debt as no funds have been paid into the ‘Future Fund‘ since 2007. If one was to add the Superannuation obligations to National debt – the current 25% Debt/GDP ratio that Wayne Swan and Treasury use as a reason to compare Australia favourably with the rest of the World, and a basis to justify more borrowing programs – suddenly looks less creditable. Again – how did our State, Council, and Federal Leaders allow this taxpayer obligation to get so far behind? On whose watch did it start – and why does this liability not form part of the State and Federal Budget structures as a debt liability owed by all State and Federal taxpayers? We’ve known for decades the ‘rich vein of gold’ – i.e. apathetic taxpayers our Politicians draw from to create their own ‘super-duper’ pension entitlements – has always been a contentious issue. Perhaps by not exposing the depth of the unfunded problem they felt they could hide it forever. Is it a case that the entitlements are just not sustainable? Again – one of the claws that sticks is why are Parliamentarian’s allowed to trigger their pension payments when they leave the Parliament and not when they turn 55 or more? Why do they only have to serve a minimum of 8 years if thrown out, or a minimum of 12 years to be eligible to receive a lifetime indexed pension linked to their remuneration at the time of their exit? Available answers to questions like these are hard to find – or to find someone prepared to talk and answer questions like those being raised hereto. This report shows some 67% of all investments are invested off-shore as at 30th June 2012. This investment strategy is wise if an expected fall in the A$ was imminent – the dividends off these off shore investments are subject to currency fluctuations and whilst the A$ remains high their value in A$ terms are neutral but driven by a higher rate of return that what is available in Australia. I do find a conflict with the structure of the Future Fund – it has a targeted rate of return some 4.5-5% above the rate of inflation or around 8% as a benchmark. Investment has been driven off-shore to chase those types of returns. This is the conflict – given the precarious Global Financial markets and the on-going GFC fallout – the risk attached to having 67% invested across Northern Hemisphere regions carries a risk greater that the shortfall in investment returns offered in Australia. The other issue is that the Legislation provides no controls over how the investment portfolio is to be structured, either in a geographical nor ethical context – i.e. the Future Fund currently has a significant investment in American tobacco stocks. This at a time when the Government is wagering a war against the effects of tobacco on health costs across the Nation. There is much at play here – the research has uncovered so many abnormalities and further research is ongoing. Part IV will get a little bit more into the individual MP’s entitlements to super and pension … |
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Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
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EYE-BALL’s Guru on – Government not happy about its tax collect – Claims Tax Minimisation deserves ‘Naming and Shaming’ -
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| Latest GURU Posts:
- 31st Mar – The Cyprus Bail-out - - 31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations – Part II – Entitlements and Allowances - - 13th Feb – Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning – Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - To see more GURU posts: – click here … |
Title: - Government not happy about its tax collect - - Claims Tax Minimisation deserves ‘Naming and Shaming’ - | Author: EYE-BALL Guru | 3rd Apr 2013 | |
| The Treasurer Wayne Swan, and his Assistant Treasurer David Bradbury are on a crusade to ‘name and shame’ large multi-national companies who they believe to not be paying their fair share of the Tax burden. This policy is proof positive that we have ‘Nutters and Loonies’ operating as politicians.You have to be a special type of ‘dumb’ to gain admission to this ‘Nutters and Loonies’ asylum, and Swan and Bradbury prove everyday they belong.
The reasons behind the Treasury’s want to ‘name and shame’ the large companies and expose the tax they pay is explained further in the following article:
It is obvious that Swan and Bradbury don’t truly understand that tax minimisation is legal in this Nation – they just want to complain about their inability to design a new tax policy that would pass through the House and work to raise further tax revenue. Kerry Packer said it best at the Nov 1991 House of Representatives Select Committee inquiry into Print Media – see [selected response] YouTube clip below: Slide the Play indicator to the ’7min 30 sec’ mark to hear Packers views on Tax:
This video proves beyond any doubt that Politicians don’t understand the implications of their legislations once passed into law. It proves they don’t understand business functions period … it provides ever reason to insist that our Politicians needs and must have a business background of some standing before they enter politics. One can say that the inexperience modern-day politicians have in the private sector is a reason for most of the policy failures inflicted upon us. Swan’s and Bradbury’s frustrations at their own budget catastrophe’s is evidenced in their desperation to publicly ‘name and shame’ companies into making generous tax concessions to fund this Governments overspend. This is socialist policy – the money managers have shown their willingness to spend taxpayers funds on policies they legislate to a specific policy agenda. It is only now after some 5 years of Government that the continued funding of those policies can’t be met. Having placed the Nation in a position of some $300 billion in new debt, the Government want to blame companies and have them come forward and make ex-gratia type tax donations. If the Government can’t legally raise the funds under their current tax laws, why should they be allowed to advertise a ‘name and shame’ file trying to blame others for their own shortcomings? This is a dangerous precedent … - Trying to rally public opinion against multi-nationals for their own federal budget failures sets precedents that opens discussions about the integrity of any off-shore investment in this Nation. Swan has bragged about the ‘pipeline of investment’ promised – he is a fool’s fool when he does. Naming and shaming these overseas based multi-nationals will not hasten the ‘pipeline investment’ – it will turn it away. How stupid can it be to chastise the very investment used to beat a population over the importance of teh sair off-shore investment? There are many ways the Government could address the tax minimisation schemes indirectly -
You either want off-shore investment or do don’t. If you you restrict such investment you run the risks of that same capital being used to compete against you. Any idiot can understand that equation – yet it seems that Swan and Bradbury have extreme difficulty in understanding what it is they are doing when they talk about a ‘name and shame’ policy that targets these multi-national investment funds. |
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Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
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EYE-BALL’s Guru on – The Cyprus Bailout -
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| Latest GURU Posts:
31st Mar - Australia’s Debt – and the idiots Managing the Treasury - - 20th Feb – Australia’s Parliamentary Remunerations – Part II – Entitlements and Allowances - - 13th Feb – Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning – Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - The Cyprus Bail-out - | Author: EYE-BALL Guru | 31st Mar 2013 | |
| Get ready Australia – this Government is about to screw every wealthy superannuant in a Cyprus style deal to fund their overspend. If they can’t get it from the Miners they will get it from the shareholders and Fund Managers who have profited from the mining boom – not really … it is not that simple.
The detail being revealed by the Cyprus bail-out is quite disturbing – read more below:
As you see … nothing is a sure thing when it comes to trusting a Government to do the right thing by its citizens. Can you imagine an Australian government placing a new tax/levy/bailout penalty on the savings of Australian people? Well get ready – Gillard under advice from Swan is demanding that he be allowed to tax wealth Australians superannuation to give the Government more funds to waste on election promises and help balance a budget out of control. This is the lowest form of moral bankruptcy – in times of war the need is for higher revenues to fund a war effort – in a like EuroZone crisis the Governments have to take drastic action – what is the reason for this Australian Government to take like action to fund a Government woefully out of its depth in controlling its own spending? This is not even wealth distribution in traditional Labor values. Nobody wants to give this Government any more money via taxes and the like because they are not responsible, nor accountable with the current revenues. It would only be a short-term measure until a new tax would be created to cover the continued wastefulness. Cyprus’s issues are the same as with Greece, Spain and the like – the value of the €Euro is killing their economy – the same with Australia’s currency value. The only thing that will save these minnow Nations will be the break-up of the EuroZone and allow these Nation’s currencies to devalue and become competitive once again. The Architects of the EuroZone were completely wrong in their assessment of how the smaller Nations would and could survive. Will the politicians who designed this monster of a clusterfu_k please step forward and take responsibility. Will the Banks who backed the Euro in this plan please do the same – its been a 15 year experiment that had failure all over it from the word go. In the end – who again is paying the price for stupidity of Government Leaders? Who are the ones still receiving pensions and the proceeds of corruption payments to get the EuroZone up and running. It begins and ends with stupid and dumb leadership and Australia has it in spades and their attack on Superfunds are criminal in their intent. |
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| Please – if you found this story to your liking and would like to promote it to your social media contacts – i.e. Twitter, Facebook, or other icon linked account below – please click your favoured Icon(s) to promote the story. Thank you
Have your say where it counts: – contact your Local Federal Representative via the links below and let them know how you feel about this, or any other topic that you feel strongly about – or you can just post a comment below and let off some steam.
|
EYE-BALL’s Guru on – Australia’s Parliamentary Remunerations – Part II – Entitlements and Allowances -
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| Latest GURU Posts:
- 13th Feb - Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements - - 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - Australia’s Parliamentary Remunerations - - Part II – Entitlements and Allowances - | Author: EYE-BALL Guru | 20th Feb 2013 | |
| In ‘Part I’ of this – ‘Australian Parliamentary Remunerations’ series, the focused was on the Parliamentary ‘base-salary’ structure – read that post here.
In this ‘Part II’ post – additional Parliamentary allowances and entitlements are the focus. In addition to their base-salary structures, MP’s and Senators are further guided by a ‘Members Handbook’ that explains all their additional entitlements.
The Headline Index in the ‘Members and Senators’ Handbook of Allowances and Entitlements is listed below:
Part 3: Accommodation and Office Facilities -
Again, the Handbook explains the entitlements and guidelines under which expenditures can be made. Handbook Link Here.
Again, the Handbook explains the entitlements and guidelines under which expenditures can be made. Handbook Link Here.
Again, the Handbook explains the entitlements and guidelines under which expenditures can be made. Handbook Link Here.
Again, the Handbook explains the entitlements and guidelines under which expenditures can be made. Handbook Link Here. To get a grip on the extent of Ministerial and MP’s expenses, the scope, the actual cost, and the reporting procedures, it is best to look at a published report of a six month summarised snapshot of MP, Senator, and Ministerial Expenses. As an example of of MP and Senator expenses for the period – [Jan '12 - Jun '12] – can be viewed using this link. This method of public reporting the Ministerial, MP and Senator expenses has only been in vogue since 2009. In 2008 only Travel expenses claims are available on-line. This Link will take you to the APH Dept Finance website where all the links provided below can be accessed independently. These links cover six monthly expense claims between Jan 2009, and Jun 2012 by all current and former MP’s and Senators. The report for July – Dec 2012 is not yet available.
[Further Explanatory Notes on these expenses can be read here ...] Despite exhaustive efforts and requests to have the data contained in the above linked ‘expense’ ledgers to be made available as a ‘database’ file, the Department of Ministerial and Parliamentary Services – [MAPS] – have advised that the data used to compile the PDF expense files linked above, is extracted from a host of different sources, thus rendering a single file option impossible. Advice was also given that there is no central registry where all expense claims are processed and accessible as a single database. Despite the obvious ‘red flag’ indicators a central database would offer to any Audit assessment, it was further explained that the budget for ‘IT’ type upgrades to allow for a centralisation of the MP and Senator expense register to has not been allocated. This is so hard to accept or believe at face value. More investigative work is being done – there just has to be a central data base file and if it takes an FOI application to obtain such a file – that endeavour will be pursued. The mind boggles at a manual type extraction … and if this is how the Dept Finance, MAPS produce the above expense files … no wonder it takes a cast of thousands. At the moment I have my Local Federal Member looking into a specific request to retrieve this data in a database format. Just thinking about extracting all the data manually from the above summary links, i.e. 6 fines of 230 MP’s and Senators spread across 12 different categories, would be a time exposure nightmare. Yet ‘MAPS’ has confirmed this is how they do the extraction for the above files … unbelievable!!! The above data in a functioning database file that allowed ‘filters’ and the like to be applied, would produce some very interesting research data. How does an Audit committee do or perform their task? The next installment – ‘Part III’ – is on Superannuation, the Future Fund, and whether the whole superannuation is a construct based on a ‘Ponzi Scheme’ with a current $300 odd billion liability on the future generations of Australian’s to fund. |
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EYE-BALL’s Guru on – Australia’s Parliamentary Remunerations – Part I – “Base-Salary” & “Additional” entitlements -
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- 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy - - 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - Australia’s Parliamentary Remunerations - - Part I – “Base-Salary” & “Additional” entitlements - | Author: EYE-BALL Guru | 13th Feb 2013 | |
| For a long time the desire to dissect and examine the Parliamentary remunerations structure has been something that I wanted to do. This series of posts is an in-depth expose on the remunerations and perks of our Federal and State Parliamentarians, and other senior Public Servants.
Introduction: The research was prompted by the 35% increase in the base-salary scale in late 2011 and 2012. The nagging issue has been whether the quality of Candidate we have in positions to ‘Lead’ our Nation, our States and Territory’s, are good enough. A lingering question is whether the Candidates coming into the Parliament have come because of the generous pay scales, the superannuation schemes attached to post Parliamentary life, and all the additional perks available. This then leads to more questions about whether the pay scales on offer are adequate to attract the best people, people with demonstrated Leadership skills? An outcome of this research might lead to some recommendations and suggestions that provide a different perspective. When Prime Minister Kevin Rudd froze Parliamentary remunerations at their then levels when the GFC fallout began to impact in 2008 – his popularity as the Prime Minister was at record highs. The electorate responded to the restraint. This decision went through both Houses unchallenged. Rudd’s demise is linked to this legislation and the ‘perceived’ angst of backbenches who saw Rudd making no real sacrifice because he was married to a very wealth wife, where most of his fellow parliamentarians depended on their salary to cover their living costs. Rudd’s demise bought forward an immediate change to the ‘restraint’ mandate and within weeks the new regime was preparing for a substantial overhaul of Parliamentary entitlements and remunerations. The outcome of this Remuneration Tribunal overhaul resulted in 35% increases to the ‘base-salary’ levels. The Prime Minister’s salary went to almost $500,000 p/a from $370,000. This compared with the American President’s then and current salary of US$400,000 p/a. What is the ‘Base Salary’ and how it came about: Can be read in detail here … to quote in part from this source -
Prior to 1901 there was no ‘base-salary’ for Members serving as Governor’s and the like. History of the ‘Base-Salary’: [The APH website database has been used in compiling the following information. Links have been provided to documents used where applicable.] The following Table provides Parliamentary increases in ‘base-salary’ increments since the late 1960′s through to the current ‘base-salary’ level of $190,500 p/a. Links used to compile the above Table: Excel Spreadsheet – APH Data- , APH PDF file, and ABS Spreadsheet. The Headline outcome in this Table is the ‘male average wage’ comparison with the ‘Base-Salary’ of parliamentarians. The 2012 number – 35.16% – is the lowest number since 1968 – giving rise to a debate that Politicians have never been better paid in comparison to those they seek to govern. It can also be said that a large portion of this ‘base-salary’ increase came in the period after the worst of the GFC when wage outcomes in the private sector, job security, and industry shutdowns are at their worst in 20+ years. The restraint imposed under Rudd has not been replicated under the current Government. The Opposition, the Greens, and the Independents could have blocked the passing of the new Tribunal recommendations – it would appear that Mr Rudd’s initiative was not long on the conscience of Members and Senators. The Remuneration Tribunal who provide the advice on increases to the ‘base-salary’ are themselves public servants and in turn also benefit from any increase to the ‘base-salary’ increments. This has to be considered a ‘conflict of interest’. Any productivity or other scale used to warrant or benchmark these increases – i.e. CPI and the like, ultimately become self-fulfilling. There has never been a year of negative inflation in the Table above – nor GDP growth, nor Parliamentary ‘base-salary’ level. This is the same for private sector wage outcomes. But those outcomes often have productivity based clauses – Parliamentarians do not have that exposed accountability. ‘Base-Salary’ Multipliers: The ‘base-salary’ is used to measure all annual remuneration salaries of Parliament and other senior Public Servant appointments. A schedule of the multipliers used for Federal Parliamentarians is delivered below, bearing in mind that everybody serving as a MP or Senator earns the base-salary. These multipliers are additional remuneration. Various Federal Parliamentary Positions/Offices: [As a percentage of the base salary, per annum.] – see on-line source here for Non-Ministerial MP’s … and here for Ministers …
Can you imagine the accountancy required in keeping track of these appointments and the additional perks that go with the Committee members and the like? There is no private sector job where any Senior Executive like an MP of Senator gets paid additional remuneration for time and effort spent. What they do have is a bonus opportunity and that is negotiated and contingent on specific profit outcomes. A senior MP or Senator might serve on three or four committees, have a Parliamentary appointment as well, and boosts their ‘base-salary’ by 50% or so. Base Salary of other Senior Government Appointees:
There is a lot more to Members and Senators entitlements – to read a full list contained in the Members Handbook 43rd edition use this – link here … [this file is almost 4MB and will take a few moments to load.] Superannuation: In addition to the above base-salary and other MP and Senator entitlements, there is of course the employer contribution to the Members and Senators personal superannuation scheme – some 15.4% of the annual salary – [i.e. base salary plus all other entitlements as outlined above.] – The next Part of this series will be about Parliamentary ‘Superannuation’ schemes and the ‘Future Fund’, now considered to be a Sovereign Wealth Fund.
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EYE-BALL’s Guru on – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy -
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| Latest GURU Posts:
- 23rd Jan – The Turmoil is Already here – We just have to accept what is coming - - 22nd Jan – The Turmoil is beginning - Japan’s Economic Stimulus to tip the scales - - 20th Jan – Wayne Swan Tips his hat at New Yorker’s - - 10th Jan – The ANZ Whitehaven Hoax - - 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan - - 29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies … - 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong - 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting - - 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases - - 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING - - 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s - To see more GURU posts: – click here … |
Title: - The Devil is in the Detail, there is none - - Gillard chooses shock, awe & Spin over Policy - | Author: EYE-BALL Guru | 31st Jan 2013 | |
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As the Nation recovers from the ‘shock and awe’ desperation Gillard presented yesterday at her National Press Club address – the reality of what a 230 odd day election campaign represents is emerging from the fog and clouded waters. What was Gillard’s motive – EYE-BALL covered this yesterday in some detail – it has been revealed that her Cabinet were largely left in the dark about the announcement – Gillard admitted that The Greens, Oakeshott and Windsor were advised shortly before she announced the election date – Ministers like Bill Shorten and Crean were not advised. Australia’s economy tethers with continued large firm job losses and closures, the flood and bushfire crisis across the eastern states were pushed aside to make way for Gillard’s attempt to muddy the political landscape. Lack of respect for Natural Disaster efforts: Her announcement came right in the middle of the aftermath of the floods and their ongoing cleanup, and when combined with the ravaging bush-fire damages, why did she pick yesterday to announce the election? The rebuild up and down the eastern seaboard will take months and even years. Gillard’s announcement proves again the stupidity that comes from her and her advisers – or ‘poor judgement’ as Abbott called it in his address today. The election announcement was a ‘crash-stunt’ meant to deflect the continued AWU scandal attacks and the police who are closing in. Without and knowledge of how disrespectful she was being - Gillard’s election stunt diminished the efforts of the volunteers, the emergency services, the victims and the hero’s all confronting the flood crisis, the bush fire damage up and down the eastern seaboard, and all giving tirelessly to defend their communities. Gillard chose to announce rather then hold back until the Nation was on the way to recovery. This was nothing less than her own personal survival plan and designed to give her, her the best chance at being re-elected. Whatever the Cabinet Ministers come out and say in the days to come – they were caught short and their true opinion will never be heard. They are all now in survival mode and one might ponder which might be the greater natural disaster – Gillard’s leadership, the floods, or the bushfires. The AWU Investigation: Gillard is aware of the AWU investigation progress, and she feels threatened as if directs itself toward her testimony in the face of the newly uncovered evidence, and new witness statements. The AWU investigation is closing in on Gillard and she had to respond if she was to prolong her survival – and she did by announcing the longest election campaign in history. Her immediate aim is to guarantee her leadership through to that election. She then hopes to stall the Oppositions pursuit of her in the house over her AWU involvement. That is a hail mary as she cannot control the Opposition and their agenda against her. But by giving them an election to focus on she was at best hoping to distract them from the AWU pursuit. Gillard knows her days as Leader and as a politician are numbered if this AWU scandal was allowed to run amok during an election year. This again proves how desperate she is – and the electorate will not be fooled – nor should the Opposition – this election stunt as her last throw of the dice. The Economic Void: Gillard’s stunt gave us nothing on ALP economic policy, yet she challenged the Opposition to provide their economic policies saying there was now no excuses to not have them fully costed well before the election. What of Gillard’s failures as an economic manager – they loom large and real – here is two relative examples …
Gillard sees herself as untouchable – as someone who is unable to believe in her failures … she moves on and that is what she has done again … Cabinet and Caucus are still to discuss and endorse the move – not that they will have any say in reversing the decision. What Gillard wants Gillard gets is the new slogan doing the rounds of parliament House at the moment. Her arrogance will have isolated her further. As a financial commentator – Gillard’s will to introduce the National Disability scheme, and the Gonski review recommendations before the election demonstrates another side of her desperation. The $10-$15 billion of new spending these initiatives will trigger, and under a Government already drunk on the over-spend of recent years – should be looked at for what it really represents – sheer lunacy. Given the odds for a ALP victory – why is Gillard so determined to exhaust the Treasury and leave Abbott’s task that much harder? Where is the accountability given the hardship Australians are enduring in the aftermath of the floods and bushfires – where is her respect for the office she serves – and the people she represents? Gillard has no economic credentials and for her to be demanding Opposition economic policies is political suicide. She will spin this into another ‘misogynist’ rant trying to punish Abbott because she could not get her way. She is more than dangerous, she is vile and nobody in the Government can stop her. Howes, Shorten, Ludwig and the like who put her in the chair now have to do what they did to Rudd … they haven’t the balls because it will make their June 2010 action look that much more damaging to the ALP brand. most of Australia does not give a hoot about her election stunt – the percentage of people who care about the election announcement would fit into the prisons around the Nation – the irony is that some of them will be serving in those prisons at some time in the future. Dismiss the media – dismiss the politicians – who is left that is affected or even interested by this early election call? Why not an early election? Gillard could have easily have called an early election and that would have been news … it would have shocked everybody and given her creditability that may have won her support and votes. Her advisers were not brave enough to debate that option with her – this election decision is all Gillard’s and she is now exposed and isolated more than ever – if only some of the ALP caucus were brave enough to do the right thing. Their squeamishness is obvious – two PM’s assassinated in three years … the sad fact is that this one is more justified than the previous and therein lies the rub – this Government has completely lost its way – they can’t lead, they have no idea what’s up or down, they all are concerned about pre-selection contests and whether they are short listed. Failed ALP Policies: It’s time for some reality checks of failed promise’s by Gillard and her Government. As a basis to justify the MRRT the Government promised a employer contribution to Superannuation taking it to 12%. Also – there was promised company tax relief for business – both these promised policies have failed to eventuate because the collect from the MRRT in the first six months has been zero. Gillard has moved on and there there has been no talk about how the promised super and tax relief are now to be funded. If we move to other areas – the NBN – what a clusterfu_k that is – and now they have to find a way to flood proof the existing rollout before they can move on to new rollouts … Then there is the health issues all around Australia with waiting lists getting longer and hospital beds being closed. This government talks a good game but it is all hollow and no substance … what about failed border issues and an immigration policy that has stalled because nobody has an answer. This PM makes these grandiose statements and when they fail – all to frequently – she makes a new round of initiatives i.e. education and recommendation from the Gonski report, and the National Disability scheme. How is she going to fund these new policies when she has not funded to shortfall from the MRRT expected tax collect. You want to talk about economic management – there is no worse example of a PM spending for re-election purposes. She has no real interest in the welfare of the people impacted by her failed policies – she moves on and tries to capture a new audience and the Australian media follow her like lapdogs hanging on her every word waiting for their next headline. Our pathetic Media: It truly is pathetic – Gillard yesterday, and now Crean this morning on ‘News 24′ called for the Opposition to lay out their policies and have them fully costed. Crean should know better – this Government has not delivered on any of its policies within budget forecasts. Crean offered up an excuse this morning that it was a revenue problem – he should be taken out the back and wacked for being so dumb … How dare Crean blame reduce revenues when they actually grew in the last two years by almost 10% and 8% respectively. These growth numbers represent the highest revenue growth years since 1996 bar three (3). The problem is never about revenues – it has always been about expenditures and for Crean to be allowed to go unchallenged on his statements this morning, says more about how much of a void there is in our media presenters who actually understand economics and financial accountability. ABC’s ‘News 24′ presenter Michael Rowlands was out of his skin trying to give Crean his platform for comment – both Rowlands and the ‘lipstick’ that sits beside him have their own ALP agendas – any creditability as political commentators they think they have is laughable. Another ABC presenter Barry Cassidy was also given his opportunity to spruik the ALP message on the same program. Cassidy as you know served as Bob Hawke’s press secretary. It is a shame he lost his way as far as objectivity is concerned – get off you horse Barry and think about giving the game away, or go back to when you had some journalistic creditability and rediscover that objectivity. The ‘News 24′ is a great concept and initiative – I do watch the live interviews but as for intelligent and inciteful commentary, Paul Jones, and Leigh Sales are about the only presenters who are brave enough to ask the tough questions. The ABC don’t have a financial journalist presenter worth a pinch of salt – they pay so called experts to guest appear and that then lends those paid for comment speakers the soapbox to make comments that go unchallenged, and not necessary on topic, or provide the answers the audience want to hear. This blog-site is mostly about macro issues, yet in all all the tripe that is dished up by Politicians and their leadership, it all focuses on the micro issues. The media never ask the Politician to answer the question when they avoid it – when it does happen it never changes the message. Politicians have been allowed to hoodwink the media and now treat it as their own message delivery system. No media presenter goes to history in a big way – even recent history could prompt a question on why policies failed – why is their no tax collect from the MRRT – was it a bad tax – did Gillard water it down ahead of the 2010 election to give herself a shot of winning that election. If you recall the Mining lobby were running a staunch campaign against Rudd over the MRRT … was Gillard’s capitulation the reason the MRRT has a zero tax collect? The answers given to this question are about commodity prices, about state royalties, about the ‘super-tax’ concept - nobody will call it a bad tax and that the Miners beat the Government down on its original intent and collect. Commodity prices, particular iron ore are seasonal – RIO, BHP, and Fortescue all announced record export volumes – and there we have it again – Crean says a fall in revenues I say the RBA and Government’s flawed inflation targeting policy, and its impact on continued high interest rates. The economic upshot is that the Government has no idea what drivers are working in the economy, and/or what influences are impacting on it negativity. For them it is all a crap-shoot … Summary: The best thing Gillard could have done is go early – it would have served her better as well as the Nation. As it stands – the continued economic downturn that will happen during the election campaign will further damage Labour as it should. The damage Gillard can do in this 8 odd month period is serious – Abbott has to work at getting her out as early as possible, and to that aim he should be pressuring the WA and Victorian Premiers to do him a favour and get the AWU investigation to its conclusion as soon as it can. The ALP caucus is asleep behind its Pied-Piper leader – there is no way any of them will stand up and deliver what the electorate demands … |
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