EYE-BALL Guru on – Wayne SWAN – nothing graceful – but a turkey that needs roasting’ …
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Aug 3rd: – Media Economic Commentary on June 2012 Retail Sales Figures – just naive …
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July 7th: – The “CARBON v CLIMATE CHANGE” Debate – Part I – OIL and its Contribution –
June 15th: – The GFC – the right of reply … the right to question …
June 8th: – A Global Economic Snapshot …
June 6th: – Treasurer SWAN just won Lotto …
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– Wayne Swan – nothing graceful –
but a turkey that needs roasting’ …
| Author: EYE-BALL Guru |25th Sept 2012 |
|Treasurer Wayne Swan has had a tough couple of days. The final 2011-12 budget numbers have been released and the News Ltd media are having a field day as is Opposition spokesperson Mr Joe Hockey.
Yesterday The Australian economics reporter David Uren filed the following story –
Today, another story was filed –
‘Dunce-hat’ Swan knew when he stood before Parliament in the May 2012 special Parliamentary Budget session just how the 2011-12 year budget result was looking, but elected to receive praise from his comrades as opposed to deliver honesty to the Parliament and the Australian people over the state of the Nations finances.
On that score alone he should be held accountable for misleading the House – he choose to leave everyone in the dark and mislead the Nation.
In doing so he was able to bring some of the 2012-13 Carbon Tax credits paid to the electorate as up front compensation into the 2011-12 fiscal year numbers all to help him achieve his 2012-13 promised Budget speech and forecasted $1.5 billion Budget surplus. What other budget book-keeping was done as well?
The May 2012 Budget deficit as reported by the RBA accounts showed a $33.1 cumulative budget deficit for the Jun ’11-May ’12 period. With an end of year result that meant the June deficit was $10.6 billion – i.e. ($43.7 – $33.1).
Every man and his dog knew this was going to happen, but ‘once a dunce always a dunce’ Mr Swan believed he could convince the Australian electorate of his Government’s financial management credentials.
The June monthly result for the time this Government has been in office is recorded below:
These final month results led to total year Surplus/Deficits as follows:
Whilst the June 2012 number was not the highest under this current Government – the revised mid year forecast still had Mr Swan underestimate the final 2012 result by $10’s of billions. For any Treasurer that can only be called incompetent.
In the above newspaper articles Mr Uren and Mr Hockey are having some fun at Mr Swan’s expense. I doubt whether Mr Swan would even care given that he is currently the acting PM and no doubt taking advantage of all the trimmings he can until the ‘bulldog bitch’ arrives back home.
Much has been written about how Mr Swan expects to turn around a $44 billion deficit to a $1.5 billion surplus which he is still forecasting. This is despite the pledged funding of an additional $120 billion in new spending as calculated by the Opposition.
Mr Swan is no genius with numbers, actually he is a dunce when it comes to understanding financial markets and the derivative products they use. His Treasury advisors managed to get it terribly wrong on its forecast revenues for both Company and payee tax revenues in the 2011-12 year.
The RBA have also contributed with their total failure to stop the rise of the A$ and allow interest rates to remain high as compared with all our major trading partners.
This incompetence has turned the Nation into an uncompetitive and now debt burdened economy without so much as a whimper from the RBA’s Glen Stevens and his motley crew of advisors and experts. Past RBA Board members are now becoming vocal over the inaction of the RBA and its high currency policy.
Australia is headed for its own GFC crisis in coming months and all this Government wants to do is throw money at the problem. In that context – Swan should be held accountable for the 2012-13 deficit that will surely come. He and the Government are doing what Premier Bligh did to QLD in her last term in office.
To get an idea of the Australian States and their indebtedness – please click on this link.
The numbers presented in the above link show the total of all State debt amounts to $180 billion as at the end of the 2012 year. QLD has the largest at $64 billion and a per capita debt of $15k per head of population. NSW’s ranks second with $57 billion and a per capita debt ratio of $8k.
The National Federal debt as at the end of 2012 is 22.9% of GDP. GDP stands at $1.371 trillion, therefore the National debt stands at $314 billion. Add the State debt and the per capita debt ratio for every Australian is $21.5k at 23 million population.
This is the worst level of indebtedness in Australian history. Any tag the Government uses to explain that our financial position is better than the rest of the world is correct in essence – but collectively the World is bankrupt and has nowhere to turn.
All Western Governments have done for the last 10 years is print money and run high fiscal deficit policies.
A pet gall of mine is the rich who live off the income from their trust funds. These fortunate people did nothing but be born into wealth. The wealth they live upon was created decades, centuries, and perhaps even longer ago. The point being – once the people who created this wealth invested and took risks to accumulate the wealth created. They dd not leave it ‘invested’ and live off the income.
This money now lies dormant in some annuity because of some tax liability if any of the assets were liquidated. If this wealth was used as capital for new investment as it could be used, it could start a new economic boom of which the world has never seen.
To ask the wealthy to do something with their wealth so as to at least appear to be deserving is a risk few would take, or be allowed to take given the structured trust deeds the wealth his trapped behind.
Treasurer Swan’s options are either to increase revenues, or print more money. He is not smart enough to enginee the first option, and so is only left with the second.
I find it such a reflection of Government and its caretakers that they are the only business’s is the World that operate from a spending program structure and then decide how they are going to pay for it. Whereas all Business operate in the opposite way – they look at revenues before they decide on spending allocations.
For fly in Politicians who may only serve a three-year term and them be gone – it is easy for them to make policy to spend in the efforts to get re-elected and if it works – they the same thing happens at the end of the next three years.
As with Anna Bligh – nobody is going to knock on her door and ask for her to make ammends and be accountable for all the bad decisions and spending she put in place. There is just no accountability except at the next election. In the current three year term of this Federal Government, it will have created near $200 billion of new debt and all incumbent on every Australian to pay back.
It’s time to ‘roast’ the turkey – but before that someone has to go and shoot the Swan.
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.
The EYE-BALL Guru …