Home > The EYE-BALL Opinion > EYE-BALL’s Guru on – Australia’s Debt – and the idiots Managing the Treasury –

EYE-BALL’s Guru on – Australia’s Debt – and the idiots Managing the Treasury –

March 31, 2013
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Latest GURU Posts:


– 20th Feb – Australia’s Parliamentary Remunerations – Part II – Entitlements and Allowances –


– 13th Feb – Australia’s Public Sector Remunerations Part I – Parliamentarians “Base-Salary” and “Additional” entitlements –


– 31st Jan – The Devil is in the Detail, there is none – Gillard chooses shock, awe & Spin over Policy –


– 23rd Jan – The Turmoil is Already here – We just have to accept what is coming –


– 22nd Jan – The Turmoil is beginning – Japan’s Economic Stimulus to tip the scales –


– 20th Jan – Wayne Swan Tips his hat at New Yorker’s


– 10th Jan – The ANZ Whitehaven Hoax –


– 5th Jan 2013 – Financial ‘Ghosts’ from the Past – Hawke and Keating v Gillard and Swan –


– 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 –


To see more GURU posts: – click here …


Title:
– Australia’s Debt –
– and the idiots Managing the Treasury –
| Author: EYE-BALL Guru | 31st Mar 2013 |
Federal Debt levels are again the subject of media speculation. Assistant Treasurer David Bradbury leapt to the defence of the Government’s debt levels after the ‘Daily Telegraph’ published a story today.

The Daily Telegraph story portrays the debt position and paints the Government as spendthrift’s with little understanding of the consequences of their policies and the debt creation.Bradbury comes back with Swan’s debate in that Australia’s debt levels are very low compared with all other like Nations … his argument is a true reflection of his own knowledge base and serves to advise that he is no more than a spokesperson.

The debate Bradbury offered up does not work for anyone who understands finance … Swan and Bradbury are idiots to try and defend their debt creation with the argument that ‘we are not as bad as others’

It’s only a matter of time before we join other desperate Nations in a scramble for revenue and enforced spending cuts.  These two boofheads, the Treasurer and the Assistant Treasurer are still out there trying to win an election with a new $billion dollar spending program every other week to try and win the votes of the people.

Bradbury’s response to today’s ‘Daily Telegraph’ story linked here, truly does measure his understanding of finance and the role of Treasury – dunce hats don’t come big enough for Bradbury.

Bradbury’s response as demonstrated by the graph he used in his defence compares favourable numbers with unfavourable numbers.  He included some Nations contemplating the Cyprus like bail-out package where stripping funds from bank depositors holdings was approved by the Government. He also compares net debt as opposed to gross federal debt.

In America they do similar reporting – see ‘US Debt to the Penny numbers here‘ …

The US are currently bumping their debt ceiling every 2-3 months because Congress won’t allow the Government carte blanche spending anymore. Their gross debt is approaching US$17 trillion – up from $8 trillion after Bush left office in early 2008. The debt has almost doubled under Obama.

Given the continued debate offered by Swan, Bradbury and every other boofhead MP who ‘does not understand what it is that he does not understand’ … Australia’s debt in the same period – [July 2007 – Jan 2013] – has grown from $33 billion, to $267 billion, a multiple of 900% …

That compares with the USA of 90% over the same period.

So – whatever the Gillard Government wants to put up as mitigating circumstances – the Rudd/Gillard ALP Governments have trashed this Nation’s prosperity without accountability, and they have the hide to try and defend their position with their most favoured of catch-cry’s – ‘jobs, jobs, jobs’.

The table presented below is an extraction of annual ABS Labour Force numbers from Feb 2001 – Feb 2013.   [Click on image to enlarge in a new window.]  The bragging by Wong and a number of other Ministers of some 960,000 jobs created by this Government is woefully inaccurate.

In the period Feb 2008 – Feb 2013, the number of full-time jobs created is 395k, and Part-Time jobs 442k.   Howard in the period Feb 2001 – Feb 2008, and there is a 9 month overlap period where Rudd did not become PM until Nov 2007 – but the number of full-time jobs created by Howard was 1,097k, and part-time jobs 650k.

Where does this Government get the 960,000 new jobs created?

Also as can be seen – the average monthly hours worked has fallen from 146.1 under Howard in 2001 – to 140.4 under Gillard.   This trend has been entrenched since the Howard years.  The upshot – more and more people are having to accept part-time work because the full-time jobs are not there.

The Government has been misleading the electorate deliberately over the pronounced 960,000 jobs created and should be made to account for their statements.

Back to Bradbury and his defence against the Daily Telegraph story.

Gillard has a Cabinet and Ministry over flowing with MP’s who have no experience in the private sector.  The ALP have a heritage where providing a budget surplus is just not a part of their DNA want.  You have to go back to the latter years of the Hawke and Keating Governments – [1988-92] to find a period of successive ALP budget surplus’.

Yet – despite the Swan 2010 promise for the 2012-13 budget to be a surplus, and still forecast to be a surplus as late as Nov 2012 – the 2012-13 budget will be close to a $25 billion deficit.

The Government refuses to acknowledge their mismanagement and are allowed to get away with misleading the electorate over their financial management of the economy.  Where is Bradbury’s explanation over the budget surplus?

The continued use of the ‘revenue shortfall’ debate is also plain wrong and misleading.  As shown and commented on in several previous posts – the revenues of the Gillard Government are some of the highest year on year growth figures during the last 20 odd years as the Table below plainly proves.

Bradbury nor Swan understand debt and its future drain on the Nation. A 1-2% rise in interest rates adds billion’s to the expense of managing the federal debt.

In fact they know they only have a few months left in Government and then it will become  some one elses problem.

Despite the numbers, Gillard continues to push and legislate new and large budget spends on Gonski, NDIS, and all the other new election promises to date and promised to come over the next few months.

If the GG knew anything about finance and the trashing of a Nation, she would be sending warnings to the Government, yet she shows no interest in the poll numbers and the legitimacy of the Gillard Government given the corrupt MP’s Slipper and Thompson about to face court, the ongoing investigation into Gillard and her AWU involvement, the escalation of the border security intake, the failed legislation in past weeks, surely the GG must be considering whether this Government is the legitimate government it has pretended to be.

The spendathon carried out by this Government over the last 54 months, when the Nation proved that it was insulated from the worst of the GFC by China and the mining sector, has pushed debt to $270 billion, and the forced need for a debt ceiling increase from $300 billion to $350 billion to cover proposed spending.

Bradbury – you truly are a dunce …

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The EYE-BALL Guru …

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  1. April 1, 2013 at 11:12 am

    This is classic crowding out in economic terms. There is limited savings. When government compete against the manufacturing sector for debt or economic capital, governments have preferable terms of borrowing, by virtue of their taxation capacity to meet debts as they fall due. In Australia’s case a AAA rating compared to maybe investment grade A- or BBB.

    Excess Government debt curtails private entreprise opportunities.

    This is what makes the jobs catch phrase a fallacy. Shame Shame Shame!

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