Swan Tells Parliament 5 Lies In 2 Short Sentences

19 Aug

Wayne “OOPS! I did it again” Swan has been “talking up” the economy lately.

But remind me, dear reader … aren’t there rules against lying to Parliament?

Consider this, from Swan’s Ministerial Statement on the Economy, from Hansard, Tuesday 16 August 2011:

MR SWAN:  As these global events buffet global markets we should bear two things in mind. First, we should remember that 2011 is not 2008. Households are not as highly leveraged

Lie #1.

The RBA Statistics, B21 Household Finances – Selected Ratios, shows that the ratio of Household Debt to Assets @ March 2011 was 19.3 (versus 19.3 @ September 2008).  And the ratio of Household Total Debt to Disposable Income @ March 2011 was 155.2 (versus 154.4 @ September 2008).

Households are more highly leveraged now, than at the peak of GFC1.

our banks’ balance sheets are stronger

Lie #2.

The RBA Statistics, B2 Banks – Assets, shows that our banks had $2.72 Trillion in Total Assets @ June 2011 (versus $2.46 Trillion @ September 2008). Importantly, it also shows that our banks’ total “assets” comprise 38.3% Residential Loans @ June 2011 (versus 30.5% @ September 2008), and that total Resident Loans (ie, Residential + Personal + Commercial loans) comprise 65.3% of their Total Assets @ June 2011 (versus 62.4% @ September 2008).  It also shows that the banks’ growth in total “assets” from September 2008 to June 2011 ($260.7 Billion), is comprised of a $291 Billion increase in housing loans, offset by decreases in Personal and Commercial loans.

In other words, (a) the so-called “assets” on our banks’ balance sheets are mostly loans, (b) their entire “asset” growth since GFC1 is 100% loans, and (c) they are now even more heavily leveraged to Residential Loans (ie, to our last-to-pop housing bubble) than at the peak of GFC1.

B5 Banks – Consolidated Group Impaired Assets, shows that our banks had $10.55 Billion in Specific Provisions For Bad And Doubtful Debts @ March 2011 (versus $4.1 Billion @ September 2008); $10.54 Billion in General Provisions For Bad And Doubtful Debts @ March 2011 (versus $7.4 Billion @ September 2008); and $30.1 Billion in Total Impaired Assets @ March 2011 (versus $13.2 Billion @ September 2008).

In other words, our banks now have 83% more Bad And Doubtful Debts, and 128% more Impaired Assets lurking on their balance sheets, than at the peak of GFC1.

B3 Banks – Liabilities, shows that our banks had $2.54 Trillion in Total Liabilities @ June 2011 (versus $2.33 Trillion @ September 2008).

In other words, our banks now have $210 Billion more in Liabilities, than at the peak of GFC1.

… and the emerging economies of Asia are still doing quite well.

Lie #3.

The latest RBA Chart Pack shows quite clearly that our “emerging economy” ASEAN economic partners (not including China, India, and Japan) all have sharply falling economic growth, currently at the levels of 5 years ago (2006):

Source: RBA Chart Pack, August 2011

And while global confidence and global markets have taken a battering in recent weeks, overall, global growth remains reasonably firm

Lie #4.

The latest RBA Chart Pack shows quite clearly that World economic growth is falling sharply, with global growth (and especially that of our major trading partners) currently at levels of 6 years ago (2005):

Source: RBA Chart Pack, August 2011

… supported by continuing strong growth in China and good growth elsewhere in our region.

Lie #5.

The latest RBA Chart Pack shows quite clearly that China’s economic growth is falling, and is now below the levels of six years ago (2005), while India’s economic growth is now at levels of 5 years ago (2006):

Source: RBA Chart Pack, August 2011

Could this be a new record for Treasurer Swan?

Five lies, in two short sentences.

Why do we all stand by and permit such criminal dishonesty, from the Treasurer of our taxes?

Any Financial Officer for a public corporation who performed their duties in this way, would receive a very long sentence.

The deceived shareholders would insist on it.

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9 Responses to “Swan Tells Parliament 5 Lies In 2 Short Sentences”

  1. Medusa Knows August 19, 2011 at 12:17 am #

    Another outstanding contribution to the facts of the matter. Why isn’t Hockey blasting Swan with this data? Turnbull should’ve had that portfolio, ‘tho that doesn’t make me feel entirely comfortable either. Thank you for exposing Swan’s garbage; and yes, he’s mislead parliament – AGAIN! Shame on the overpaid leftie MSM for kowtowing to this govt.

  2. Tomorrows Serf August 19, 2011 at 7:40 am #

    It starts with a “little” lie. The next one comes a little bit quicker and a little bit easier. Soon, they’re coming thick & fast to keep the game going.

    Nothing coming out of the mouths of these lying incompetents would surprise me anymore,…

    I’m not wondering what their agenda is anymore…straight out of Obama’s playbook. Check out this link.

    http://www.lvrj.com/opinion/obama-s-agenda–overwhelm-the-system-95716764.html

  3. JMD August 19, 2011 at 10:43 am #

    Swan will be still be saying ‘strong economy’ as the rioters battle police & the looters sack parliament house & steal the water cooler from his office.

    The debt crisis is here & now, gold is hitting new highs, in AUD, & the money (read debt) market is roiling. These are not signs of a strong economy.

  4. JMD August 19, 2011 at 11:15 am #

    And another thing, an article on ZeroHedge;

    http://www.zerohedge.com/news/next-domino-fall-canada

    What goes down in Canada is sure to go down here, probably in more extreme fashion.

  5. misterq August 19, 2011 at 2:52 pm #

    THey aren’t lies – he simple has no clue.

    • Twodogs August 19, 2011 at 9:53 pm #

      Every village has an idiot, but countries don’t usually have one for a treasurer!

    • Tomorrows Serf August 20, 2011 at 6:14 am #

      Well, he’s either a LIAR or an IDIOT… Which one is worse?? How about he’s BOTH a LIAR AND AN IDIOT…..

  6. Geoff Rose November 29, 2012 at 4:19 pm #

    We have to tell everyone that Wayne Swan has just one brain cell , and that brain cell is under the control of the IMF after all he is on the IMF board . Check out the book “The Globalization of Poverty” by Michel Chossudovsky and you will come to understand WayneO’S rhetoric .

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