EYE-BALL Guru on – Treasurer SWAN just won Lotto …

June 6, 2012
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Title:
Treasurer SWAN just won Lotto …
Treasurer Wayne SWAN looked like he swallowed the canary today as he poked his tongue at the Australian media and ‘doomsayers’.   The GDP numbers were unbelievable – a 1.3% rise in the March ’12 quarter and annualised at 4.3%.   These numbers are manner from heaven for a Government living day-to-day on life support and with virtually no chance of revival.

They have been on this life support for the best part of a year – Gillard and her team of loyal Ministers continue to load up the good ship ‘Lollypop’ – handing out her sweeteners at every opportunity – all in a vain attempt to try to buy back supporters.  Someone has to tell her and her Ministers not to bother – Julia has the ‘clap’ sign hung around her neck – well that must be how she feels when she awakes every morning to find that someone else just screwed her all over again – not in the physical sense – the ALP brand is not that dumb.

Respect for any type of Political Leader is done – it will never be given back – it will have to be earned and ‘Julia’ is a used whore with no chance of walking any street soliciting interest.  As for her backup in Mr Swan – well he just likes to sit at the head of his own table where the sign – ‘World’s Best Treasurer’ sits above his haloed head, he has to be the luckiest Treasurer that ever lived.

The Miners who hate him the most keep kicking goals for the wrong team – and Mr Swan is the type to ‘stick’ it up everybody even when he has no idea what he has done to deserve the good news being delivered by the economy.

Two ABC stories about the GDP numbers released today appear below:

Swan hits back at economic ‘doomsayers’

|By Simon Cullen | Updated June 06, 2012 | Link to ABC Story On-line. |
Federal Treasurer Wayne Swan has described the latest economic growth figures as “stunning” and has declared that they should put an end to the “doomsayers”.

The National Accounts figures show the Australian economy grew by 1.3 per cent in the March quarter – significantly higher than what economists were predicting.

“What a great day for Australia and what a stunning set of figures,” Mr Swan said.

“It says something very special about our people, about our resilience, about our hard work, and about our capacity to face up to the worst that the world can throw at us.”

The growth figures were released less than 24 hours after Opposition Leader Tony Abbott described the domestic economic conditions as “soft”.

In responding to the Reserve Bank’s decision to cut interest rates, Mr Abbott said yesterday: “The stock market is down. Profits are weak. Retail sales are weak. The property market is down.”

But Mr Swan says it is now time for sections of the business community and the Opposition to stop talking down the Australian economy.

“I see these figures as a victory for the optimists over the pessimists … and it puts the naysayers and doomsayers right back in their box,” he said.

“It simply blows away the hysterical nonsense that we saw from Mr Hockey and Mr Abbott yesterday, describing our economy as underperforming, describing our economy as weak.”

But Shadow Treasurer Joe Hockey is not letting up in his criticisms of the Government.

“The scariest thing in Australia is Wayne Swan,” he said. “Imagine how well our country could do if we had a good Government.”

“This does demonstrate the resilience of the Australian people in the face of a flawed Government.”

Mr Hockey has described the growth numbers as “surprisingly strong”, adding that they seem “at odds” with the Reserve Bank’s decision to cut interest rates by 75 basis points over the past two months.

“It is extraordinary though that the Reserve Bank put out a statement identifying modest domestic growth as an issue, and today we have these extraordinary numbers,” he said.

Yesterday, Reserve Bank Governor Glenn Stevens cited “modest domestic growth and a weaker and more uncertain international environment” as the reason for cutting the official cash rate by 25 basis points to 3.5 per cent.

None of the big four banks have yet announced whether they will pass on the full rate cut, despite growing pressure from the Government.

“We believe that the banks should be passing this interest rate cut on in full to mortgage holders,” Prime Minister Julia Gillard said.

“I don’t believe there’s any excuse for the banks to do anything other than pass it on in full.”

But the Opposition says the fact that no major bank has yet passed on the rate cut shows the banks aren’t listening to Mr Swan.

“This is a Treasurer who is very good at talking to the banks, but very bad at actually influencing them,” Opposition Leader Tony Abbott said.

“This is a Treasurer who is all talk and very little action, and what I fear we’re going to see is an interest rate cut for banks, but not an interest rate cut for home-buyers and for small businesses,” he said.

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In an earlier ABC story immediately after the GDP Numbers were released – the following story was reported.  [Each of these stories have accompanying video replays.]

Treasurer hails ‘exceptional’ economic growth

|Updated June 06, 2012 16:30:59 | Link to ABC Story On-line. |
Australia’s economic growth surged by 1.3 per cent in the first quarter of the year, more than double economists’ expectations, driven by household spending, business investment and mining construction.

The Bureau of Statistics figures show the economy grew by 4.3 per cent in the 12 months to the end of March on a seasonally adjusted basis, its highest level in 4.5 years and well above the long-term average of around 3.25 per cent.

Federal Treasurer Wayne Swan hailed the gross domestic product figures as painting an “extraordinary picture of exceptional growth”.

“What we see here is resilience – an island of growth amid global uncertainty,” Mr Swan said.

Economists had been expecting GDP to rise just 0.6 per cent in the quarter, with an annual growth rate of 3.3 per cent.

“This is a remarkable outcome and reaffirms Australia’s position as one of the strongest economies in the world, with the Australian economy growing faster than every single major advanced economy in the March quarter,” Mr Swan said.

“In through-the-year terms, this result is the fastest growth in over four years, which have been the most turbulent in the global economy since the Great Depression of the 1930s.”

The bureau says the strong result was propelled by household spending, business investment and construction related to the mining sector.

But exports and housing investment fell in the quarter.

The mining, professional, scientific and technical, and financial sectors each added 0.2 percentage points to growth.

Commonwealth Bank chief economist Michael Blythe says the result suggests that the economy is faring much better than many believe.

“My first thought was that [Treasury Secretary] Martin Parkinson was right when he reminded us all a few weeks ago that we aren’t actually living in Greece,” Mr Blythe said.

Mr Blythe says he was surprised by the strength in household spending, which added 0.9 percentage points to growth, driven by spending on food, transport, recreation and financial services.

“What we’ve also seen in these numbers is that Australian consumers have continued to spend, and certainly to a greater extent than some of the gloomy views out there about households and what businesses are suggesting would have indicated,” he said.

Western Australia’s economy grew by 7.8 per cent in the quarter, far outpacing the rest of the nation.

The economies of Victoria, South Australia, the Northern Territory and the ACT also expanded in the period, while there was a slowdown in New South Wales, Queensland and Tasmania.

Mr Swan acknowledged the “uneven” growth around the country, but said the figures proved that Australia could rise to any challenges posed by domestic and international turbulence.

“Headwinds from a weak and volatile global economy, the high dollar, and structural changes underway in our economy continue to weigh on some sectors,” he said.

“While fragile global conditions are clearly weighing on confidence, trade and financial markets, today’s report is a resounding endorsement of the strength and resilience of the Australian economy.”

The bureau also revised the growth rate for the December quarter higher, up from 0.4 per cent to 0.6 per cent.

The Australian dollar jumped after the GDP figures were announced, as the result will likely reduce the need for further cuts to the cash rate, and at 1:25pm (AEST) was buying 98.5 US cents.

There is much positive news in these numbers by any measure that is important to all investors. As raised by this commentator previously in posts on this matter – GDP is a measure that allows Government members to suck each others cock.

Government spending inflates the GDP numbers and in the last three years this Government has been the greatest spender in the Australian economy by a factor you choose to name.   The release of these numbers even had the Opposition Treasury spokesperson Joe Hockey licking Mr Swan’s ass.  Poor Joe – out of his depth by such a large margin, he does not even bother to try to keep abreast of what is happening anymore.

These GDP figures have a rubbery feel about them.  Retailers said their Xmas sales in January were ordinary – the layoff’s at the beginning of this year were daily announcements, the profit reporting numbers have been ordinary, and there have been several large Business shut their doors.  The only ones who have reflected any of the prosperity thse GDP numbers represent are the Banks,.

The miners are experiencing a downturn in commodity prices and the high dollar through the period crushed tourism, manufacturing, and the retail sectors.

The Government operating result for the Jan -Mar ’12 period showed a $8.592 billion deficit.  The same result for the previous Jan – Mar ’11 period was $7.048 billion.  The result for the Jan – Mar ’10 was $10.582 billion.  The point being that if the private sector are not spending – and the Government is out there trying to inflate the economy – are these GDP numbers an accurate measure?

We know that Government’s can’t keep spending – and the ‘budget surplus’ delivered by ‘Magician Swan’ in May for the 2012-13 year now looks better then when he made his prediction.  Again – lucky bastard.

When SWAN crow’s from the dungheap upon which he sits – the World has a right to smell his stench – it comes out of his ass – a bit like pullin’ rabbits.

These GDP numbers make the RBA look like idiots – if these numbers were released before the RBA met on Tuesday – the 0.25% interest rate cut would not have happened.  The A$’s 3 cents rise since last Friday represents shorts covering on the back of todays GDP numbers.

The CRB index says sell – the A$ chart says sell – all the equity market charts around the world says sell – and what does Mr Swan get handed – a ‘buy’ signal for all things Aussie … the assiest Treasurer that ever lived.

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The EYE-BALL Guru …

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  1. Gerry Hatrick
    June 7, 2012 at 12:11 am

    I do not see how this silences the doomsdayers or the naysayers. Yes Australia is the envy of the western world on those figures alone. As an Australian you can feel good about yourself. Then you think about the other challenges facing “Everyday Working Australians”.

    As I watched the snake oil salesman,being interviewed by Lee Sales on the ABC, she asked a few sipid questions and then went back to the chestnut, “is now the time for treasury to be so focused on returning to fiscal surplus?”

    I waiting for a better line like can you now accelerate Australia honouring their commitment to lifting foreign aid to 0.5% of GDP. or Why did the RBA cut interest rates by 0.25% yesterday when their economic modeling would have them know that GDP was so strong. In fact RBA has cut interest rates by 0.75% since March quarter. March quarter GDP is 9 weeks ago. What has changed?

    Economic modeling is a different debate. Holding all assumptions constant to measure the correlation of one isolated change in the parameters. Economics is a social science at best.

    Since March 31st, inflation is low, retail sales weak except in mining regions, unemployment fragile and currency thankfully weaker, a small respite. I can only concur with the author, winning the trust of the electorate is a long hard road. Jobs and living standards are the only real barometer. It is not the words of the government or the opposition.

    Living standards are truly hard to gauge, but mine has not been affected by today’s GDP number, has yours?

  2. June 7, 2012 at 8:56 am

    Piss’s me off when assholes get lucky – can you believe the rally across Global markets overnight … talk about timing – as if the Australian GDP numbers gave the World hope … we’re just not that significant … our GDP gross output would not rival California … would be a bee’s dick when measures against all of Europe … there is no way you could convince me that last night’s rally was on the back of Australia’s GDP result.

    Await the revision and then ask whether it was influenced!

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