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EYE-BALL Guru on – Treasurer Wayne Swan – Mini Budget Part 3 – The Clangers keep coming …

October 24, 2012
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Latest GURU Posts:


– 23rd Oct – Treasurer Wayne Swan – Mini Budget Part 2 – Mortgaging Australia’s Future to appease his ego


– 22nd Oct – Treasurer Wayne Swan – Mini Budget Part 1 – 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 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:

click here …


Title:
– Treasurer Wayne Swan –
– Mini Budget Part 3 –
– the clangers keep coming  –

| Author: EYE-BALL Guru | 24th Oct 2012 |
Since the release of the mini-budget on Monday last our Treasurer has continued to front the media with explanations for the budget cuts he has imposed on the Australian Electorate.   Mr Swans offerings have him in an about-face given his up-market narrative used in the past to describe the Australian economy.

This is Part 3 of a series of posts on the Mini Budget and Mr Swan’s credentials to be the Treasurer in a Government besotted with itself over the financial management of the Nation throughout the GFC.   To read previous posts see below:

  1. Treasurer Wayne Swan – Mini Budget Part 2 – Mortgaging Australia’s Future to appease his ego …
  2. Treasurer Wayne Swan – Mini Budget Part 1 – paints a false mirage to protect his legacy –

Clanger 1:  The Reason for the Baby Bonus cut …

On day 1 of the mini-budget release the Opposition made reference to Mr Swan’s comments he gave as a reason for the ‘baby-bonus’ cut – Mr Swan’s comments appear below:

‘ … This followed comments from Treasurer Wayne Swan yesterday when he announced a raft of budget cuts including plans to cut the baby bonus from $5000 to $3000 for the second and each subsequent child.

‘We believe that these changes to the baby bonus will bring it more into line with actual costs of having children. After the first child you’ve already bought the cot, the pram and other items you can use again,” Mr Swan explained … ‘

Read more …

Firstly – the Opposition’s comments in response to Mr Swan’s statement exposed Swan’s ‘clanger’ – Mr Swan’s reasoning for reducing the ‘baby bonus’ is because a second child is – ‘cheaper’ to raise than the first’ – and borders on a logic that might have been applicable a generation of two ago.

Mr Swan’s Opposition spokesperson who has young children made the comments that due to legislative and regulatory advancements concerning child safety, i.e. car seats and their continual upgrading as they grow etc … that all children needed to be treated the same when it came to child safety.   The costs of maintaining the needs for each child’s safety is not diminished on the basis of ‘hand-me-downs’ for subsequent children.

Mr Swan was filling in the commentary to suit the budget cuts he needed … his reasons for the cut to the ‘baby bonus’ have no modern-day relevance, nor connect with the costs of raising a second or third child … as was pointed out by the Opposition

If this is the best commentary Mr Swan can offer up – he is in desperate need for a new script writer and political advisor.

The Opposition’s rebuttal was perfectly aligned – yet the Prime Minister – thin skinned as ever – weighed in when she saw the Opposition Leader’s comments – ‘the Government’s inexperience on family matters’ – as a reference to her ‘childless’ life.

Gillard was once again playing the ‘sexist misogynist nutjob’ card and has no shame in doing so – her attack comments appear below:

‘ … Opposition Leader Tony Abbott says his comments today about the government’s inexperience on family matters were not a reference to Prime Minister Julia Gillard’s childlessness, but says he will apologise “if she would like me to say sorry”.

Ms Gillard earlier called on Mr Abbott to explain a comment he made, interpreted as a thinly veiled reference to the Prime Minister’s lack of children, in the mid-year budget debate.

This followed comments from Treasurer Wayne Swan yesterday when he announced a raft of budget cuts including plans to cut the baby bonus from $5000 to $3000 for the second and each subsequent child.
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”We believe that these changes to the baby bonus will bring it more into line with actual costs of having children. After the first child you’ve already bought the cot, the pram and other items you can use again,” Mr Swan explained …’

Read more …

Gillard refreshed from the news of her bump in the polls as a result of the ‘misogynist’ tirade in Parliament two weeks ago, has made a choice to pursue the misogynist tantrum and made reference that Mr Abbott was speaking about her when he made the comment about – ‘the Governments inexperience on family matters …’

The Prime Minister has no personal experience in motherhood, or in the costs in raising children.  Mr Abbott – regardless of whether it was a thinly veiled ‘dig’ at the PM – has every right to call both Mr Swan and Ms Gillard to account for the reason offered up by Mr Swan as the reason for cutting the Baby bonus …

Mr Swan is drowning and he is yet to call for a lifeguard … Gillard has her head so high in the clouds after her Asian visit – even her ungraceful tumble has not bought her back to earth – she can’t see Mr Swan for the idiot he is.

Clanger 2:  Mr Swan on Interest Rate cuts …

On the 2nd day after the mini-budget Mr Swan offered up another of his ‘clanger’ reasons for the budget cuts and the need for them to assist with future ‘interest rate’ relief – his comments appear below …

But the Treasurer, in a direct warning to his opposition counterpart Joe Hockey and the independents, said the savings were needed to produce interest rate relief and provide the maximum room for the Reserve Bank of Australia to further cut official interest rates.

read more …

Mr Swan has presided as Treasurer for over a four-year period where the gap between Australian official interest rates hovered around 4% when compared with those of our major trading partners.   It has only been of late where the RBA has reduced official interest rates to the now 3% level from 4.5% at the same time last year.

This 3% level is still well above the 0.0%-0.75% levels of our major trading partners.

There was no urgency from Mr Swan to advocate a cut in interest rates when the Government was in the market borrowing to cover its $200 billion budget spend over the same period.  The RBA feared a spike in inflation indicators as a result of the Government spend and that has now proved to have been a monumental bad-call by both the Government and the RBA.

This prevailing interest rate differential has been a big factor in attracting off-shore investment for ‘hot money’ investors, and has contributed to the continued high value of the A$ on world currency markets.

It now seems that Mr Swan can’t get interest rates lower quick enough – it is all far too little to late Mr Swan … had you understood what was happening in the market place over the past four odd years you would have been ahead of this curve, and not languishing in the tailed off dust-cloud created by smarter off-shore bankers/investors taking advantage of you and your Government’s ignorance.

Australian mortgage holders have had to deal with higher interest rate costs during this four odd year period because you, and the RBA were too dumb to realise that it was a problem that could have been solved with a better management response to our high currency value,  and not solely rely on a high interest rate policy.

We all await with bated breath for Mr Swan’s next clanger …


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The EYE-BALL Guru …

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  1. david the pramatist
    October 24, 2012 at 10:30 am

    Well done Eye Ball, can’t argue. Your summation re the Aussie dollar and the lack of vision from the RBA is again spot on.

    The only thing is that Abbott is becoming even more clumsy and its time the conservatives brought in Turnbull rather than Australia have its second worst Prime Minister in history, following the worst. Thats not even mentioning Julie Bishop as the deputy Prime Minister and her ranking would be dummer than even Swan and “is that” saying something!

  2. hillbilly33
    October 24, 2012 at 3:46 pm

    Turnbull has a better chance of leading the Labor Party than ever leading the Liberal Party again. He had his chance and blew it when he showed his allegiance was to Goldman Sachs, not the Australian electorate. Labor voters like to fantasise about Turnbull probably more out of poll mischief-making than anything else , but if they really love him, they are welcome to him. Labor already has all the podium placings for worst Prime Minister and are unlikely to lose any of them in the near future. Gillard 1; Rudd 2; Whitlam 3: Billy McMahon for the Libs runs a poor fourth. At least Abbott and Bishop have a head start because no two people could ever be worse than Gillard and Swan. I guess only time will tell while we’re all still free to have and express an opinion! That’s another reason Gillard must go, and the sooner the better!

  3. October 24, 2012 at 4:00 pm

    Turnbull is an enigma in political terms, he has my respect because of his commercial background, but for well over 12 months now he just won’t engage during the House Question time and seems aloof to the point where nobody can guage his position on anything … I subscribe to his electoral newsletter for interest and as the Opposition Communications Minister have engaged him an an ongong dispite with Telstra …

    Minister Conroy gets the same request and both MP’s need to be chased for responses … given the material provided Iwould have though Turnbull would hav ebeen al over Conroy … and as such my opinion on the man as a better option for Coalition Leadership is now aligne dwith your views …

    I can’t have Abbott or Bishop – given the material gifted tothem by Gillard and her motly crew – to still trail by 10 points as preferred Leader and only having a narrow lead in party preferred – the electorate agrees that Abbott is no alternative …

    None on either bench offer alternatives … whatever RUDD was – he is still the electorates preferred PM … and I would go along with that if only to see Gillard ditched and abbott denied …

    It ain’t any sort of choice … but what is the alternative …

  4. david the pragmatist
    October 25, 2012 at 9:18 am

    I accept the comments re Turnbull and there are some question marks and and not all the things he has championed am I aligned to, Republicism for one is a non issue of “ain’t broke, why fix it”.
    Just the same I have gone with Turnbull because he has an intellect, which is a more than a serious shortfall with most of our politicians.
    WE need someone with a vision and the ability to “jump on an advisor” who may say that “could be bad politics”! These bastards need to understand that most things they do are bad politics, because they are playing at politics and henced missed the prime directive of why “am I” in politics. This current US election is going to be decided over the media’s interpretation of the body language of the candidates in a debate.. Lets not get or go there because to be frank in Australian terms Gillard is proving to be the best politician at the moment. Its interesting to note that the best politician is the worst scenario for us as a Country.
    Here’s hoping that Turnbull may have the “goods” because there not much else out there that gives this little pragmatist much hope!
    PS This has nothing to do with parties, I would not be uncomfortable with Turnbull leading the Labour party with one exception! Why would he want to? other than changing asylums and running with different inmates.

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