Funding For Policy Scandal – Australia Is A Kleptocracy

26 Jul

Do you want to know how deep the rabbit hole goes?

h/t to Twitterer @Kmorefive for bringing the following to my attention.

From Business Spectator (emphasis added) -

An ALP funding horror

Robert Gottliebsen

If an election is held in the next few months, Australian banks will play a big role in the outcome. And unless there is a dramatic change in the fortunes of the parties, the banks will still be key players if (as is likely) the next election is two years away.

Australia has rarely seen such a banking/election event in its history and it certainly did not occur in recent elections. The looming role of the banks could force the ALP into a pre-election leadership change and in extreme situations force it to modify its carbon tax.

To understand the pivotal role of Australian banks in the funding of political parties requires a deep knowledge of how the system works.

For the most part, in the vicinity of three quarters of a major party’s funding in most elections comes from the public purse. The ‘public purse’ amounts are allocated to parties after the election in accordance with the proportion of the votes that are achieved.

But there is no forward allocation of money. The distribution of ‘public purse’ money is strictly governed by the proportion of the votes actually achieved.

ALP organisers are not looking forward to meeting with their bankers as the election nears. They are deeply apprehensive that as a result of current opinion polls, their bankers will slash the amount of election funding available to the ALP and lock it into a low vote.

Conversely, Liberal and National Party organisers believe that as a result of their opinion polling they will receive a huge increase in support from their bankers to fund unprecedented amounts of advertising and promotion.

If, theoretically, an election was to be held in a few months’ time, ALP organisers would go to their bankers and negotiate to borrow the money required to fund the campaign expecting to pay it back when they receive their ‘public purse’ money after the election. This might be the conversation:

Banker: What proportion of the votes do the opinion polls suggest you will gain?

ALP organiser: The current Nielson poll suggests we would gain 26 per cent of the primary vote but we know we will do better.

Banker: Maybe you will, but if I lend you money that represents the amount you will receive from the ‘public purse’ if you attained, say, 40 per cent of the vote, I might bankrupt the ALP if you only receive 26 per cent because you could not pay me back. That would not only give my bank a bad debt but it would be disastrous for Australian democracy.

ALP organiser: But it will be disastrous for Australian democracy if we are decimated at the polls because we have only meagre advertising money.

Banker: I am sorry but I have shareholders and I need a safety margin. I will fund your advertising on the basis that you receive 20 per cent of the votes. You will need to be much more skilled in using non-advertising promotions.

The Coalition conversations with their bankers would be the exact reverse of this.

The ALP organisers fear that the party is going to be much more dependent on union contributions than it has been in recent times. This may tend to spin the party to the left, although many unions are opposed to the carbon tax. Those unions opposed to the carbon tax may require modification before they inject ‘rescue’ money. However, if they see Tony Abbott moving to water down industrial relations legislation they may be tempted to dig deep.

In the case of the Coalition, the parties will depend less on contributions from party members and corporate supporters, assuming they maintain the current lead in the polls.

In reality, if the current opinion poll levels are maintained then it will make it very difficult for the ALP to gain the election funding to change its fortunes at the polls.

As the horror of this outcome becomes apparent to party members, they may seek to replace the prime minister with someone who might either lift the party’s ratings in the polls or who will attract more union rescue money. The ALP has its back to the wall.

There you have it.

The banksters do have a powerful, direct influence over the direction this nation goes.

Now we understand even more clearly, why a Banksters’ Glee Club comprising a clear majority bank-employed “leading” economists has been publicly barracking for the government’s carbon pricing scheme scam.

Mr Gottliebsen’s revelations on how electoral funding really works in practice are seriously troubling, in their implications for what amounts to a clear opening for the perversion of the democratic process.

And yet, I think he is (perhaps naively?) completely misunderstanding what those implications are, in terms of the most controversial public policy right now.

Quite simply, he’s reading the implications backwards.

Because I suspect that the ALP will not have much difficulty in getting the loans they want/need for their election campaign. Especially whilstever they cling to the bankster-driven “pricing carbon” policy.

And in terms of the Liberal Party, in light of the constant appeals for donations that seemingly appear in all of their public communications collateral (emails, newsletters etc), I suspect that the anti-carbon tax Abbott-led Coalition is not sitting as prettily with their bankers as Mr Gottliebsen seems to believe.

Now, to an interesting and directly related front.

If our basic contention – as implied by Mr Gottliebsen’s article – is that our political parties’ policies can be and ultimately are determined by their financial backers’ willingness to loan (or donate) to their election campaign funding, then we only see further supporting evidence for that somewhat chilling reality check in this news story about another of Green-Labor’s proposed policies (emphasis added) -

About 1800 cement industry jobs are at risk from Labor’s carbon tax and proposed new shipping rules, the federal opposition says.

Nationals leader Warren Truss says the $2 billion a year industry is facing a double whammy under the Gillard government.

He says domestic cement manufacturers could be killed off by “dirtier” imports, made cheaper under the carbon tax.

“The paradox is Australian cement production is a leader in low emission technology and any shift to imports will force global CO2 emissions to rise,” Mr Truss said in a statement.

Mr Truss said Australian cement had the world’s second lowest greenhouse gas emissions behind Japan.

“But the carbon tax will price Australia’s cleaner cement out of the market, giving the green light to our international competitors to boost their higher CO2-emitting production and flood Australia with dirty cement,” he said.

“… the Australian cement industry will be crushed by competitors who will not be paying a carbon tax.”

Mr Truss said Labor was also rewriting the Navigation Act to force businesses that ship products around Australia to use local, union-dominated vessels.

He said “unionised shipping” costs significantly more than current market rates, which would be another blow to the industry.

“Right now it costs about the same to ship cement from China to Australia as it does to ship it from Adelaide to Port Kembla,” he said.

Under the Gillard government’s sop to the maritime union, our biggest competitors in cement – China, Indonesia, Taiwan and Thailand – will dramatically undercut Australian suppliers on shipping costs alone.”

He said a large section of the cement manufacturing sector would not be compensated under the carbon tax plan.

The compensation package only applied to processing clinker, the first stage of making cement, he said.

“The second milling stage to make what we know as cement receives no compensation,” Mr Truss said.

So, the real reason why the Green-Labor Government has been slowly re-regulating (ie, re-unionising) the Australian economy … is because they need their money to finance their election campaign.

The lesson we must learn?

When it comes to the all-important consideration of why a politician or party really adopts the policy/s that they do, the Golden Rule always applies.

Follow The Money.

The following of which will always lead you down the rabbit hole … into the wonderland of global finance.

More honestly and accurately called, “bankstering”.

Ladies and gentlemen … we are not living in a democracy.

We are living in a kleptocracy.

What are you going to do about that?

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