Pedal To The Metal – Gillard Shows Rudd How To Drive Up Debt

13 Dec

As an avid motorcyclist and former GT Falcon owner, your humble blogger can certainly vouch for the thrilling adrenalin rush one experiences from serious acceleration.

But it seems I have a thing or two to learn from our flame-haired PM about getting thrust in the back.

Former PM Kevin Rudd knows all about it, as the chart below demonstrates:

Click to enlarge

Interesting, is it not?

The epic acceleration in government debt under Kevin Rudd abruptly halted for two months, immediately after Gillard knifed him.

She was distracted, you see. Eyes off the road.

Too busy bending over trying to quickly tune in radio 1ETS and 2MRRT before the 2010 election.

Election over, and deal done with the Greens and “Independents” to form government … then instant pedal to the metal.

Given it was then 2 years since the first GFC peak had passed us by, one can only wonder just what Julia was accelerating away from.

It is certainly clear what we are now rapidly accelerating towards.

In case you were wondering, that little flat spot about $20 billion below the $200 billion line?

Yep … it’s the period around the May 2011 budget.

Can’t be racking up the debt at a rate of $1 – $2 billion per week when the big Budget night is coming up. Especially when you are trying to distract everyone’s attention from the upcoming record deficit announcement, by lying about jobs creation.

Budget passed, provisions to steal your super enacted, debt ceiling raised by 25%, financial year ended … and it’s pedal to the metal again.

On the fast track to hit the $250 billion debt wall by mid-2012.

The chart above shows monthly CGS outstanding up to end November 2011.

So far this month, Julia has added another $4.5 billion to the total – now $223.4 billion.

With another $3 billion to be added this Thursday 15th.

$7.5 billion in a fortnight.

Forget CO2 … I reckon she’s flicked on the N2O.

Otherwise known as “laughing gas”:

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10 Responses to “Pedal To The Metal – Gillard Shows Rudd How To Drive Up Debt”

  1. wendy December 13, 2011 at 7:04 am #

    That’s great insight, thank you for the information. This government is borderline insane, however due to the Australian voters complacency, i think they’ll get into power again – if not, they’ve left enough damage to last at least another 10 years. The 14 – 16 laws they changed to get the CT in wont be easy to reverse.

    I’ve found some interesting facts about the Carbon tax benefits which are quite bizarre – apparently a worker on $25k per annum gets higher benefits as considered low income earners, 25k pa equates to $12.50 per hour and yet according to Fair work, the minimum wage in Australia with awards, is $15.51 per hour… so does this mean that no one gets the high end of compensation of this tax?

    See links with info if you’re interested;

    http://www.smh.com.au/environment/climate-change/what-the-carbon-tax-means-for-you-20111012-1lkpc.html
    “The bottom line is that a worker on $25,000 a year will get a tax cut of about $500 a year by 2015 and most middle income earners will get at least $300. High income earners on more than $80,000 will get nothing”

    http://www.fairwork.gov.au/pay/national-minimum-wage/pages/default.aspx
    “Australia’s minimum wage is $15.51 per hour or $589.30 per week. Generally, employees in the national system shouldn’t get less than this.”

  2. wendy December 13, 2011 at 7:36 am #

    The accidental, moronic, idiot boy-child of the Australian Labor Party has finally been promoted; Bill Shorten gets more power with his position in Workplace Relations, Financial Services and Superannuation. Well in line for leadership of the party now. Isn’t this a conflict of interest to a degree? he’s married to the daughter of the Governor General and in a past life was a Union leader, the National secretary to the AWU.

    He was also one of the main factional leaders/power brokers behind Rudd’s removal and further was on the board of GetUp! a questionable organisation which enjoyed over $1 Mil in donations from the unions during the 2010 election – explains a lot about this group and their real motivation, which is far from “Apolitical”

    • The Blissful Ignoramus December 13, 2011 at 10:07 am #

      Just wait til markets finally twig to the full reality of our government’s underwriting of the Aussie zombie banks, and the true extent of that problem. Might take a while yet with all the focus in the northern hemisphere, but it will happen. Anyone thinking Aussie sovereign debt is a “safe haven” is kidding themselves.

  3. Tomorrows Serf December 13, 2011 at 8:37 pm #

    Guys,

    I get the feeling that we are all just talking to oursleves, and we all know (intuitively) how this is going to end.

    If you don’t manage debt, debt manages you.(us)

    Gillard and Rudd have only had 4 years to do their work. Where are we?? $220 billion up the spout! Not a heck of cahonjes in comparison to the trillions owing on short term rollovers in Europe, but give the size of our economy, not small bikkies.

    Take a look at the big picture. Europe is TOAST!! The US is TOAST, but may profit from the collapse of the Euro.(short term) The Japs have been undersater for 20 years! China is powering along building STUFF in the middle of nowhere for nobody.(all on borrowed money conjured up out of thin air) and it is surely time that they must pay the piper. As they realise that the bill is due, they’ll contract. Maybe only form 9% to 6% but who do you think they’ll cut loose first??? The supplier of raw materials (us) who have been kissing Obama’s ass for the last year or two. And who have given Obama a brand new, squeaky clean, shiny military base within striking distance of the Chinese mainland, in Darwin. If I owned real estate in Darwin, I’d be selling and buying in Tassy..

  4. Richo December 14, 2011 at 9:37 am #

    It is a pity that dummy Ben Eltham still misses the key economic points in this rainbows and puupy dog piece on the drum.

    http://www.abc.net.au/unleashed/3729358.html

    • Jazza December 14, 2011 at 5:08 pm #

      That nong will just give the Goose ideas on how to spend more, faster ,and new ways to tax us more–and how about his implication –referencing the ancient Romans–that we actually have some lasting infrastructure to show for our government’s debt??

      i’d like to know where it is!?

      i think it’s on walls all over the middle country,as in plasmas–either hat or got pissed up against the walls when the $900 cheques hit mailboxes!
      I’m of course referring to the cash that DIDN”T get burnt in roofs or get put in only to be taken out again, and that didn’t go to the overpriced government school system for gold plated sun umbrellas over wooden benches in playgrounds– or in 5ft wide canteens people couldn’t move and work in!

  5. Betty Whiffin December 16, 2011 at 3:07 pm #

    I lived through the Great Depression and things were tight but there was a way out, but I have never been so concerned in all my life at what is happening to our world at present. This is going to be more than a Great Depression – a mega Great Depression – and it is dreadful to contemplate how it will ever able to be righted. Not only is Europe and the USA TOAST buit Australia will join them. The waste has been phenomenal by this government but people don’t seem to see it – they were only interested in their $900 cheques and the so-called “compensation” they will get, which will soon dry up. Just think of dreadful waste not only during the GFC but the money spent on the climate change fraud.- billions. The saying is certainly true “if you can’t manage debt, debt will manage you.” And this has not been realised.

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