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EYE-BALL Guru on – Penny Wong – On the mid-year accounts –

October 21, 2012
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Latest GURU Posts:


– 16th Oct – The First Home Owners Grant – the fallout and a reflection on a stupid stupid Government policy …


– 10th Oct – Tony Abbott Talks the Talk – but he is on empty when it comes to detail –


– 25th Sept – Wayne Swan – nothing graceful – but a turkey that needs roasting …


17th Sept – “Twiggy” – What went wrong?


12th Sept: – The “Window” of life nobody wants to look through


19th Aug: – The ‘Lucky Country’ Tag – if you say it enough it must be true –


Aug 18th: – The Value of the A$ – Part II – another report from ‘The Australian’s’ David Uren –


Aug 15th: – The Value of the A$ – Part I – a report from ‘The Australian’s’ David Uren –


Aug 3rd: – Media Economic Commentary on June 2012 Retail Sales Figures – just naive …


Aug 2nd: – The Rise of the Australian $ – Finally someone from Academia Land agrees –


July 30th: – Greece – – Should they be allowed to leave the Eurozone –


July 27th: – Superannuation – a great big rip-off – Part III!!!


July 19th: The “LIBOR” Scandal …Part III – Banks a conduit for crime and corruption!!!


July 14th: – Link to Part IIThe LIBOR Scandal … The Banks are in Trouble … again!!!


July 8th: – Link to Part IThe LIBOR Scandal … about to explode …


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 …


To see more GURU posts:

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Title:
– Penny Wong –
On the mid-year accounts –
| Author: EYE-BALL Guru |21st Oct 2012 |
Early speculation on the Mid-Year Budget report is highly speculative about the Government being able to meet its forecast surplus.   The Government is still using the comment – ‘Australia is still far better placed than our trading partners’ as a reason for calling what this Government deems as – ‘good economic policy’.

This reasoning is lame and a pathetic attempt to paint a picture that distorts the reality – in fact the rest of the world is catching up to us because we are going backwards in a slow decline, and manufactured by this Government because of its economic mis-management.

Please read the Penny Wong story below:

Mid-year budget cuts to be fair, says Wong


| Author: Milanda Rout | Date: 21st Oct 2012 | Link to On-Line Story. |

FINANCE Minister Penny Wong has said any cuts made in the upcoming budget update will be “fair” and again attempted to justiy moves to deliver a $1.5 billion surplus given worsening international economic conditions.

The government is expected to release its mid-year economic and fiscal outlook as early as this week amid reports that it will need to find an additional $4 billion in spending cuts and revenue measures to meet its surplus target.

Senator Wong told Sky News Australian Agenda this morning the government was “engaging in a pretty big fiscal consultation” given revenue shortfalls.

She said the slowing global economy and declining commodity prices had an impact of the budget bottom line.

“There is no doubt that the global economy is more subdued than anyone anticipated at the time we handed down our budget. Since that time, we have seen the IMF downgrade the forecast for global growth and most importantly for Australia, particularly in our region, they have downgraded both China and India as well,” she said.

“Obviously that has an affect on Australia’s budget. That’s the circumstances Australia and the government currently find itself in.”

Senator Wong would not be drawn on whether there would be any further cuts to defence spending, but said any savings across government portfolios would be “fair”.

“We will take the same approach that we have always taken and that is to focus on our priorities, what are fair savings, what are savings that impact the least on the most vulnerable in our community,” she said.

Senator Wong also again defended her government’s commitment to surplus given all the cuts that will be required to deliver it and denied the $1.5 billion surplus aim was political.

“The commitment to surplus is very much grounded in the economy,” she said. “Whilst it is true the global circumstances have changed, the reality is that the most recent national accounts show Australia growing at trend growth and in those circumstances, what you want to do it bring the budget back to surplus.”

Senator Wong said there were economic reasons for the surplus.

“You want the government, as the economy is growing, to put the fiscal settings back on a more normal settings and you want monetary policy to do more work,” she said. “You want the government to give the Reserve Bank room to move when it comes to interest rates.”

Senator Wong said Australia still was in a much better position than any other advanced economy.

Her comments come as News Limited papers today reported Treasurer Wayne Swan would slug foreign workers, backpackers and migrants hoping to marry Australians with higher visa charges.

Mr Swan said the moves would raise $500 million for this week’s budget update.

“With our economy growing strongly, [ – on what planet is she living – ] it’s important we return to surplus to give the Reserve Bank room to cut interest rates as they have been over the past year or so, and to provide a defence against global uncertainty,” Mr Swan told News Limited today.

“Responsible budget savings aren’t just important for lower interest rates. They also mean we can deliver big Labor reforms like an historic pension increase and paid maternity leave for the first time

Gillard and her hillbilly wagon full of economic misfits have decided that after having inflated the Australian economy for the past four years with a Federal Government spend of A$186 billion, including four consecutive deficits amounting to:

  1. 2008-09 – A$31.336 billion
  2. 2009-10 – A$56.517 billion
  3. 2010-11 – A$51.106 billion
  4. 2011-12 – A$47.023 billion

[Sourced from RBA statistical data … ] … and this after consecutive budget surplus’ since 1997 amounting to A$163 billion  – of which A$80 billion happening since 2005/2007-08.

If this amount of Government spending over the last four years was responsible for saving the Nation from the GFC fallout the rest of the World endured – what do you think reducing A$50 billion of Government programs from the economy in the current year will do to the economy?

The forecast $5 billion revenue from the MRRT for this year is a hail mary, and the whole MRRT tax given the bile it created within the resource industry – will fail and fail badly.

Mr Swan who suddenly awoke from a self agrandising slumber after he was named as Treasurer of the year 14 months ago, is now waving his magic wand and proclaiming he can produce a surplus – the God has spoken … what a wanker and nobody is calling him out … not yet anyway.

The Treasury revenues have fallen off a cliff, and outgoing’s are rising at a pace not seen in a decade or more.

Centerlink normally process 20,000 claims for family assistance payments a month, in January this year whilst doing research on unemployment numbers it was discovered that with the fall in the Jan 2012 unemployment number, the number of applications for family assistance had grown to 80,000 a month.

The reasons for this was the layoffs and reduced casual employment where dual income families previously not eligible for family assistance, were now eligible because of the employment layoffs throughout the economy.

No economic or finance reporter is talking about this story – and as the unemployment numbers come out every month – hardly anyone knows that the monthly figure is a six years average or ‘smooth’.   That means as each new month rolls by, the figure from six years ago rolls off and the new month as added, and the unemployment rate is the averaging of the data over the previous six years.

The jump from 5.2% to 5.4% unemployment last month is hardly indicative of the real carnage happening all over Australia in the Tourism, Manufacturing, and Retail employment market.

The capital losses on equities, negative gearing on property values,  and the increased no tax threshold since the GFC,  have all eroded any safety buffer within the budget and requires the Government to step up with budget cuts that will stress Government services and public works.

This four-year Government overspend on Gillard’s limitless credit card have now maxed out and the Government are hell-bent to reverse the spending and stop the debt carnage.

The rest of this financial year will see business confidence eroded further, the revenue base fall further, and the budget cuts dig even deeper to find the savings needed to meet Wayne Swans ego driven budget surplus.

Until the ‘tax minimisation’ loopholes are blocked and the wealthy are forced to pay their taxes just as ordinary Australians do, the solution to the problem will not be found.   ‘Franking Credits’ on equities, negative gearing of property, offshore tax haven entities, trusts, tax loss writedowns, all have to be revisited to come up with a more equitable and modernised tax levy system.

Hell – negative gearing has been around for 30 odd years and the reasons it was introduced when it was have long since changed.   It’s been a reason that has pushed property prices and now many who purchased over the last five years are sitting on massive capital losses and minimising tax even further.

This Government’s focus and determination in producing a surplus in the current year, and as commented and reported upon by Penny Wong above,  is a path to an economic crisis that will be very difficult to pull back from.

The Government is enacting mindless shoot from the hip policies and mindless journo’s are not asking the right questions.   The Australian public are being kept in the dark about the escalating financial plight of this Nation … it is negligence in the extreme.


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The EYE-BALL Guru …

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  1. Justin L
    December 20, 2012 at 5:08 am

    More lies from another Gillard stooge and mouthpiece. Just bring on the election so we can boot these damned hipocrites to kingdom come. The whole band of them are misfits who should have never entered politics in this country. The indecent mess they have made of the three cardinal areas of government viz. administration, finance and policy is well documented and there for all to see. I am utterly disgusted with this crowd of no hopers.

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