EYE-BALL Guru on – Everybody wants to Blame the EUROZONE …

December 9, 2011
Everybody wants to Blame the EUROZONE …
A week ago the ‘Worlds Best Treasurer’ – Wayne Swan  stood before his ‘paid for headline’ media throng, and claimed that the Euro crisis was to blame for the near A$20 billion blow-out in the 2011-12 budget. He would have us believe that the 2012-13 Federal Budget will return to a small surplus from a A$38 billion deficit – a A$40 billion turnaround in 12 months.Earlier this week he lauded the GDP Sep Qtr numbers of +1$ as the most outstanding numbers since Mar 2009 when the GFC was at its most fierce.  If anybody cared to look – he had his legs crosses, his toes crossed and his ‘balls’ hanging across to cover the ‘porky’s’ he was delivering.   Next year the EuroZone  and perhaps the China slowdown and the descent by the USA into a similar financial contagion as Europe as a reason for not delivering a budget surplus.Overnight comments about the S&P 500 selloff and the DOW’s 200 point fall try to blame it all on the EuroZone crisis – [read story here]

For many months now the contagion engulfing Europe has been blamed for much of the home-grown problems that already existed in America, Japan, and many other developed Nations around the World.

Hardly a day goes by when another round of hopeful meetings are announced and all that happens is the markets get ahead of themselves in anticipation and then sink on the disclosure that no agreement has been reached.

Out of this ‘blame game’ reasoning and avoidance comes the easy lecture that others are to blame.  Greece with its debt burden has been an easy target – but is anyone concerned with the citizens of Greece?   Do you think they are accepting in others calling them to account for the whole of the EuroZone crisis – this blame game is spreading to Italy, Spain, Ireland, Portugal, and other smaller members of the ECU.

Even the ‘best Treasurer in the World’ has joined the mass in blaming what is happening in Europe as the only reason Australia’s budget performance has not reflected forward estimates.  Mr Swan you are a ‘girl’ – your policies re the high value of the A$, the surrender of Australia’s Tourism, Manufacturing, Retail and our export industries mining and agriculture to $100’s of billions in reduced revenues because of the high value of the A$ is the reason you cannot balance your budget.

Yet blaming Europe is an easy out for the ‘worlds best Treasurer’ and his Government because dumb-ass journalist’s suck on your every word and only print what their paid for editors are prepared to print.

  1. I give you a question – how are Pension and Super Funds expected to meet their pension obligations when inflation sits 3-4% and interest rates sit at 0-1%?
  2. A second question – if government expenditures are withdrawn as an input to GDP growth – what would be the real GDP growth since the GFC started?
  3. And a third question – what Federal Government programs do you think will be gutted, closed down and reviewed to save A$40 billion next year?

To see other recent EYE-BALL Guru postsClick on this link:


GuruThe EYE-BALL Guru …

  1. david the pragmatist
    December 9, 2011 at 10:24 am

    OK, your points are valid and whilst I am sure I could get an argument from you in some of the effects. I have to agree with your comments re Swan etc.

    I think calling the Treasurer a “girl” is a mistake and probably infuriates whatever female readers you may have.

    Finally the real issue for our Country going forward is unemployment. As you have rightfully stated the Tourist, Retail,Building and Manufacturing industries have been emasculated (sorry girls) by the Treasurer. The answer is the swollen and bloated State and Federal Government Public Service. The fat that it exists in that area is enormous and unfortunately
    these people are not employable in any other area of the economy.
    There lies the dilemma, I am more bearish on this economy because of these reasons than anything to do with the banks ect. The banks are not nice people for many a reason but at least we understand there motive. Swan’s head up his arse or anyone elses smacks of total incompetence.

    I am more worried about the future than I have ever been. I am pissed off because they had the resources to insulate us as much as possible. Swan’s going to have us joining the rest of the world.

  1. No trackbacks yet.
Comments are closed.
%d bloggers like this: