EYE-BALL Guru on – Treasurer Wayne Swan – Mini Budget Part 2 – Mortgaging Australia’s Future to appease his ego –
|Latest GURU Posts:
– 22nd Oct – Treasurer Wayne Swan – paints a false mirage to protect his legacy –
– 21st Oct – Penny Wong – On the mid-year accounts –
– 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 II – The LIBOR Scandal … The Banks are in Trouble … again!!!
July 8th: – Link to Part I – The 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:
– Treasurer Wayne Swan –
– Mini Budget Part 2 –
– Mortgaging Australia’s Future to appease his ego –
| Author: EYE-BALL Guru | 23rd Oct 2012 |
|The commentary over Treasurer Swan’s mini-budget will last until Parliament rises for the Christmas break at the end of next week. In the meantime – the stark reality is news that Mr Swan manages the Australian Nations finances as if there were credit card debts.
His Company Tax grab from quarterly to the now monthly payment needs to be exposed for what it really is. The forecast $8.3 billion cash-flow positive this Company Tax grab makes to the fiscal outcome for the 2012-13, allows Mr Swan to continue to live in his fantasy world for a few more months.
This idiot, this swindler, this lunatic in charge of Australia’s financial future is the dumbest motherfu_ker ever to be called Australia’s Treasurer.
The problem is that the Australian media swallow his gibberish jibba-jabba as if it means something important.
What of the increased interest cost on the Government to cover its credit card limit extension … merely telling your Banker that your future income i.e. tax revenues will cover the cash flow problem is not enough these days to appease your Banker – why should the Government be given a pass mark for playing the same card?
A few short months ago the Government was talking about a $5 billion Nationally funded disability insurance scheme, and the $5 billion needed to fund the Gonski Education report, and if the sum total of all the other policy initiatives stated since July last year – the Opposition claim it amounts to $120 billion over a number of years – were appropriate for the Australian economy a few short months ago … why has Treasurer Swan suddenly seen the need to introduce emergency spending cuts?
I have a question, several actually – and I can imagine many readers have a few as well – how can a Government suddenly become aware that revenues have fallen off a cliff – who was not standing their watch – who kept the Treasurer elevated in his cloudland fantasy for all the time that the economy was tanking … forward estimates were falling for months yet the policy roll-out of Gillards vote grabing agenda continued on its way.
Treasurer Swan’s Finance Minister Penny Wong had to have been similarly disengaged and with a new baby, one can perhaps make a case for her distraction … but then that might be see as ‘misogynist sexism’ …
Collectively this Government has behaved like teenagers with an endless supply of credit cards and now they all fear the interest rate increases from a Global revolt against Australia because the World needs to see Australia practice some restraint … that fear is in stark contrast to where this Government Leadership painted themselves in June this year.
It was only a few short months ago that PM Gillard stood before the World at the G-20 and chastised them and said – ‘look at our management, you should all take a lesson from our playbook’. Read EYE-BALL’s comments on this story using this link …
Gillard embarrassed Australia at that Conference with her hubris – whoever wrote her speeches had their head stuck up Wayne Swans ass keeping him elevated in his fantasy cloud-world.
How much ‘egg-on-face’ is there now attached to that performance?
One now has to ask another question – how did no one see this cash flow crisis coming … all of Australia saw it coming – where was Mr Swan?
The GFC will prove to be the undoing of the financial markets as we once knew them as this crisis continues to unfold. This Australian Government since 2009 has spent a cumulative $184 billion in budget deficits to try and keep the Australian economy from experiencing a GFC fallout as has been experienced in the northern hemisphere. Those budget deficits are summarised below:
If a Government props up and economy buy printing money – as has done all the G-20 Nations since 2008 – there can only be one outcome if it stops the printing presses – ‘recession‘. Yes the big “R” word that no Government wants to speak of or hear during its term of office.
For 40+ years Global debt, public and private has led us to this place – we now sit and look back and ask – how did it all happen?
The questions have answers but nobody wants to wear the responsibility, especially past Governments who spent their way to re-elections and defeats.
Everybody has invested in debt to survive and fund their lifestyle in that timeframe … it’s considered more chick to look rick and successful, even though the monthly bank statements deal with the reality of that lifestyle cost. No wonder the global ‘depression’ epidemic has evolved …
When Banks place ‘easy’ credit at your disposal – nobody twists your arm to say yes. Debt has become a toxic cost on society – much the same as tobacco was until the world realised that people could not help themselves, and decided to introduce legislative bans because the cost of treating the health issues for tobacco induced cancers – blew Government Health budgets sky-high.
DEBT is the new enemy of society and Banks are due a haircut … he is a tip … clear out your Aussie Banks shares and be prepared to go short in the near future when interest rates begin to rise to keep the offshore funds onshore …
This GFC will force Governments to introduce tighter legislation on Banks and the way they manage credit offers to their customers. That will all be too late for a whole generation and the next generation will be forced to live with the new ‘credit’ law of the day.
The problem with Government debts is different, who will tell them that they credit limits are exhausted – that is where the P.I.I.G.S. are now. i.e. Portugal, Ireland, Italy, Greece and Spain. It means a credit rating downgrade that leads to higher interests for new debt.
In America they have a ‘debt-ceiling’ but as each new ceiling has come, the Government has been forced to pass increases they think will give them a few more years.
Look at the graph below as pasted from the Wikipedia site US Public Debt – it truly gives a ’cause and effect’ perspective. You increase a ‘debt-ceiling’ and Governments see approval to increase borrowings to that ceiling – in Obama’s term every year …
On the strength of this chart you would say that Obama is a spend alcoholic – but then we all know that he had to deal with the GFC bailout from day one of his term … all caused by his predecessor who now hides from public engagements and has withdrawn from public life because of the bile American citizens have for the man.
At the recent GOP Presidential convention – George Bush Jnr’s name was not mentioned – nor did he make an appearance – he is that toxic to the GOP re-election chances.
I digress – but the importance of understanding from whence we came is just as important as understanding how we can fix the problem and where we might be headed.
There is a website called – ‘AustralianDebtClock‘ – that has a running total of all things debt related to Australia. A statement published on this site has profound relevance and appears below:
The Gross Australian Federal Debt was A$250 billion as at the 28th Sept 2012 – see source data here – [opens an excel file from the AOFM – (Australian Office of Financial Management).] – against a current debt ceiling of $300 billion.
The ‘debt-ceiling’ in Australia is only a recent invention – up to 2008 there was no real need – at that time the Government had some $50 billion of debt on issue to sustain a Financial Market in Government Bonds. At the end of John Howard’s Prime Ministership the net debt position was there was no net debt – but reserves of some $18 billion.
Post GFC the Rudd Government introduced a Legislative process for the creation of a ‘debt-ceiling’ as a measure for the Government to be accountable to itself and the Australian electorate. It was initially set at $75 billion in Jun 2008 – it was raised to $200 billion in Dec 2009 as the ‘stimulus’ packages introduced to combat the GFC fallout required new debt raising. This figure was again raised another $50 billion in Jun 2011, and again by $50 billion in June 2012. It currently sits at $300 billion against current debt of $250 billion.
You blink on a credit card limit and before you know it – the Nation has increased its liabilities from negative $20 odd billion in credit, to some $250 billion in the space of four years.
What does Australia have to show for that spend – it’s a question that could never be answered to anyone’s satisfaction – much the same as some teenager looking at their debts and asking themselves – ‘what do we have to show for all this debt’.
Does this spend make Wayne Swan a Treasurer who has behaved like a teenager out of control of the public purse strings? Or is he a politician surrounded with like-minded buffoons who’s only focus has been about maintaining employment numbers at the risk of trashing the whole Nation for decades to come.
These are the questions now before Mr Swan as he seeks to honour a pledge to return the budget to surplus in the 2012-13 year. Mr Swan – for your information – putting your finger in a dyke hole four years after the wall began to crumble is a fool’s choice. You have truly fucked us all …
Government debt raising’s equals public investment choices … the end result is that when the Government steps into the market place – it sucks up investment funds that could be otherwise used to create commerce if there were no alternative and viable investment opportunities. When a Federal Government takes some $300 billion from an economy and turns that into 5, 10, and 15 year debt obligations – it puts the Australian public into a financial transaction that current, and future generations of workers will have to pay back.
There is no doubt the GFC created global turmoil and Rudds response was designed to provide a short-term stimulus impact in protecting this Nation from the fates suffered by Europe and Nth America – but for how long? His proposed $75 billion debt ceiling gave some prospective of the estimated spend they had in mind.
Enter Julia Gillard and her socialist agenda of ‘spend-spend-spend’ Ministers, and there was Mr Swan – sipping cocktails from his hammock whilst balancing his ‘Treasurer of the Year’ duncehat – giving them all access to the ATM of public monies.
When he and all the Ministry claimed that Australia’s GDP to Debt ratio is the envy of the world – as they have all done for the past four years – this current knee-jerk mini-budget truly is a sign of a Treasurer now sitting in his counting house counting all his money.
The previous Government swam it its surplus funds, it was embarrassing and they had no idea what to do with the funds – there were a multitude of infrastructure projects and upgrades that could have been undertaken but Mr Costello had no foresight nor vision of what Australia’s needs were for the future.
Those infrastructure upgrades are now urgently needed, ports to help our exports, electricity grids that are now being forced onto private sector because States can’t find the funds – Costello and Howard were ‘Scrooges’ and Australia missed a wonderous and wasted opportunity before the GFC hit.
Costello never understood nor planed for the ‘rainy day’ that would come.
The benefits of the resources boom through the late 90’s and through to the current period has been largely negated by the rise of the value in the A$vUS$. This site for as long as it has been up – some 2+ years – has given voice to this currency value stupidity that has only gained a mainstream perspective in recent months.
As commodity prices have increased, against a falling US$ value, the A$ receipts for Australian exports over the boom years of the resource sector, agriculture, tourism, manufacturing, and retail industries have been stripped of a A$trillion dollars in A$ trade revenue …
All this lost revenue can all be attributed to the rise in the A$ v US$ value. Australia’s committment to ‘free-trade’ has rendered our Politicians on both sides as the dumbest politicians in the world – Australia is the only Nation that believes in the honesty of a global free trade arrangement – nobody actually operates as free-trade merchants. Australia is the only Nation that does not provide ‘farm subsidies’ to help out their agriculture industries.
China has pegged its currency to the US$ for 20+ years – and in the last 10 years have reaped the rewards by becoming the largest holder of foreign reserves. Nobody can compete with their cost of labour and with a peg to a weakening US$ currency – China renders the rest of the Globe as uncompetitive.
China having created the illusion of its demand forecasts created the will for mine production to meet those forecasts … as commodity prices increased through demand – China paid the price and began to stockpile whilst it funded new mines in Brazil and Africa to give them cheaper options. This strategy will reap them rewards for another century whilst high value currencies wilt on the vine because they cannot compete with those cheaper markets.
So when Mr Swan talks about the ‘investment pipeline’ as Australia’s saviour – he is again talking through his fantasy filled cloud of delusional fairy-land economics.
Please – open your eyes and read rather than get your news from vested editorial News productions … Mr Swan looks into the camera and you might think he has some idea that he knows what he is talking about – in fact – he is repeating a ‘stump’ speech provided by his advisors and they in turn have drafted that speech content from Treasury staff primed to deliver the figures and facts in the most palatable way that allows them to survive with careers intact.
I guarantee you that if the Treasury bureaucrats, and other Departmental Heads were able to speak to the Nation – their comments would make Mr Swan, and other Ministers hide from the shame of their misrepresentation’s. What Mr Swan offered to the Australian public yesterday was ‘tripe’ being served on a hollow bed of squirming worms.
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The EYE-BALL Guru …