EYE-BALL Guru on – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan –
|Latest GURU Posts:
– 2nd Jan 2013 – The Great Big Financial Swindle – Part III – GFC Bailout has only postponed the inevitable –
-29th Dec – The Great Big Financial Swindle – Part II – The ‘Budget Surplus’ Backflip – Swan tells his own Porkies …
– 22nd Dec – The Great Big Financial Swindle – Part 1 – The ‘Budget Surplus’ Backflip – Swan serves up Senator Wong
– 14th Dec – The Walls are crumbling – Government admits High A$ policy is hurting –
– 4th Dec – Retailers and bureaucrats don’t understand – high A$ value responsible for off-shore purchases –
– 19th Nov – Government Expenditures Part I – Department of Prime Minister and Cabinet – DPMC – STAFFING –
– 3rd Nov – Shareholders – Holding back the world – scared money – scared boss’s –
– 31st Oct – Finally – RBA bubble head opens his mouth – He says – $A intervention not needed –
– 25th Oct – Foreign Minister Bob Carr & Wife – An Australian asset –
– 25th Oct – Communications Minister Stephen Conroy – one of Gillard’s Lap-dogs – untrained and unleashed –
– 24th Oct – Climate Change Minister Greg Combet – The Carbon Tax – emissions Trading scheme –
– 24th Oct – Treasurer Wayne Swan – Mini Budget Part 3 – The Clangers keep coming …
– 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 –
To see more GURU posts:
– Financial ‘Ghosts’ from the Past –
– Hawke and Keating v Gillard and Swan –
| Author: EYE-BALL Guru | 5th Jan 2013 |
|The release of Cabinet documents from the Hawke/Keating era continue and make for most interesting reading and comparisons. The Australians’s David Uren wrote a very enlightening article for the Weekend Australian and is recommended reading – it appears below:
I lived these times as a Financial Markets Treasurer managing a $500 million liquidity portfolio – in those early to late 80’s times Keating was a champion of the Markets … so many changes, so many opportunities for smart savvy operators who could see the big picture and make monkeys of those who struggled to deal with the new opportunities financial deregulation created.
The ‘cowboys’ were aggressive traders who saw Keating’s market initiatives – i.e. floating of the A$, the deregulation of the Banks allowing new overseas licences, the lifting of off-shore investment … they all provided large gaps in experience and knowledge that gave the markets plenty of entrepreneurial type opportunities.
It was 10 years or so before the markets calm down and became more rigid due to regulators themselves becoming educated as to where they should be operating in stabilising market volatility and opportunities. Of course they missed heaps and the ‘cowboys’ were still able to operate as they always do by thinking up schemes the regulators had not even thought of at the time.
In Australia – it was not until APRA in the early 2000’s that Australian markets really got themselves a ‘watchdog’ with any teeth or the ‘smarts’ to take on the market players seriously.
You won’t find a market operator from the 80’s and early 90’s era who will have a bad word said about Keating … how and why he lost to a neanderthal by comparison in Howard in the 1996 election is a subject that creates much debate within market operatives of the era.
Howard and Costello took 5-6 years to understand what Hawke and Keating had achieved with their market reforms. They began to dismantle the good done in workplace reform with ‘workchoices’ and the like. To this day Costello still does not understand the nuances of how a floating A$ dollar impacts on Australian commerce and industry over the longer term … Swan and his Treasury advisors even less so …
I quite often live in this era of past glories … a time where one could see Australia’s future as bright and full of opportunities … comparing it with todays globalisation and where Central Banks intercede in currency markets to give their domestic economies a competitive edge – is a far cry from the natural forces of global markets during the 80’s.
To make the summer reading complete, there is an excellent article by a global think-tank called – Petersen Institute of International Economics – it is a new-found research center for this author and it is highly recommended for financial markets research purposes – an extract quotes:
This article I refer to and highlighted by Colin Twiggs from ‘Gold Stocks and Forex‘ fame is titled: ‘Currency Manipulation, the US Economy, and the Global Economic Order’ … and linked here … it was published in Dec 2012 and I highly recommend its reading, particularly for those interested in financial markets, and/ or managing a Superfund or other proprietary funds.
This ‘policy’ document provides opinions that challenge the long-term impact to economy’s where the practice of currency price-fixing, or manipulations result in domestic repercussions not always in the best interest of local economies – i.e. for every action there is always an opposite and equal reaction – the laws of physics as they say.
The problem is that Politicians have short attention spans – they are always focused on the next election result as the most important agenda … this focus has them completely out of touch with the cycles of economic reality and responses. Domestic economic activity often takes decades to prepare and then decades to play out.
The volatility of markets during the 80’s financial markets deregulation under Keating had their cause and effect in the ‘recession ‘ we had to have’ in the early 90’s. When one looks at the global marketplace on a post and continuing GFC fallout – anything is possible as Nations fight for survival.
Government’s are on a ‘war-type’ footing as they strategise economic policy that best suits their needs – the Bankers to those Nations in the most peril are extracting high returns in exchange for sovereign debt … the world investment community is demanding and receiving high returns in exchange for Government to grow even larger debt … the recent American ‘fiscal-cliff’ deal was no deal, merely a postponement of a fate nobody wants to deal with in any harsh reality. Politicians of the modern era should never be put in charge of a Nation’s debt creation and management … yet that is where it lies …
Once in a generation you will get a Leader with vision and the will to make changes for the better … at other times the Leaders think they are a the one but their capacity and deeds prove them otherwise. We don’t know when vision and accomplishment is great until well after the event … in other words at the time nobody can really see the future in its full focus … look to Hitler in the 30’s … the Nixon decision to abolish the ‘gold standard’ … the Central Banks and Government’s responses to the ’87 crash … the Bush decision to go to war after the 9/11 attacks … they have all led to ’cause and effect’ debates and none of them measure as positive’s on a ledger …
There are thousands more policy decisions that can be used to highlight the ineffectiveness of policy makers and the thinkers behind the scenes who formulate the policy with longer term objectives in mind. Take the debate on ‘carbon tax’ to deal with the ‘climate change’ debate when as pointed out by the EYE-BALL Opinion in his post titled – Climate Change & The Human Factor – The Silent Debate nobody wants to talk about – where he highlights that in a debate where everyone is in agreement that humans are effecting ‘climate change’ – why is nobody talking about population control.
It’s a ‘too hard’ debate and would lead to wars and hostilities … Leaders abdicating from their responsibilities is how this site would argue the point.
Returning to on-topic matters … Hawke v Gillard and Keating v Swan …
Firstly – Hawke and Gillard have similar paths to the Prime Minister role – Hawke knifed Hayden to become the Opposition leader weeks ahead of the election that history shows ‘a drovers dog could have won’ … Gillard knifed Rudd as a first term sitting PM … that is about the only similarity that can be found … in every other way Hawke trumps Gillard on any level … Gillard can’t even walk in Hawke’s shadow … she is a dilation, a pretender, a Unionist’s mole, a criminal, and of all other things a woman so far out of touch with her own gender, she has ruined it for all future and aspiring women who want to become the PM.
As for the Keating v Swan … Keating is ‘god-like’ whereas Swan could not even qualify to be Keating’s whipping boy, or his shoe-shiner, or his coffee fetcher … Swan is to financial management as Madoff is to Ponzi schemes … he is just too stupid to realise it and that is being insulting to Madoff – at least he knew what he was doing and had a purpose … Swan is a goose who does not know how to lay any eggs …
Do you all get the message … Swan and Gillard represent a doomsday scenario for the future of all Australian’s for decades to come … wake up Australia !!!
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The EYE-BALL Guru …