Tag Archives: national debt

Greens “Land Of Little Pink Clouds Of Happiness”

6 May

How remiss of me. Here’s Barnaby’s column last week for the Canberra Times (my bold added):

Political fiasco drawing to an end, but the pain will linger on

It feels like the political show is rolling the credits and the crowd is leaving the cinema on this Green-Labor-independent matinee.

One evening this week, Tony Windsor flagged one evening his inclination for a same-sex marriage referendum; then, the next morning, he said he was not going to raise it with the Prime Minister, nor was he going to vote for it.

This was followed by some incredulous babble about Facebook, social media and all in all translated to utter confusion.

Julia Gillard told us that the economy was going so well that the deficit had blown out to $12 billion. The debt went up by another half a billion and now the earnest scribes who swore black and blue that the debt was not a problem are now looking earnestly at the camera saying it is. Meanwhile, Labor delivered a similarly confused explanation from the Windsor book of high Athenian rhetoric.

But we do have one cost that is proportionally going down and that is unfortunately, our defence spending, which is now at its lowest level since 1937. I find that the most powerful tool to engage the electorate is to suggest what would happen to our nation if we let this Green-Labor-independent political fiasco continue in the job.

At the current Wollomombi Falls trajectory, there would not be much among the rocks at the bottom to pick up.

The Greens want everything ever dreamt of in their Kubla Khan, Xanadu euphoria, otherwise known as party meetings, to be paid for by a mining tax. The fact that they can never nominate a mine they support or wish to expand seems irrelevant in the land of little pink clouds of happiness and chatty tea parties with hesitant girls, tardy rabbits, and mad milliners.

From our side of the political debate, my friend Clive has not been helping out. Clive, please, starting a party is what Bob Katter has made into an art house film. Why join him on the set? It is a little more difficult than what is first anticipated and new parties gather new ideas at about the same rate as they gather self-appointed messianic figures who wish to grace Australia with their unrecognised talent.

Business is sitting back biting their nails. Business wants certainty, sanity and honesty; it sees the government crab walking to a new tax to cover the National Disability Insurance Scheme because they have no money for its promises.

It is a genuinely essential program to look after those severely disabled, but to be genuine in your belief in this, the government must suggest what current plans would be cut to pay for it. Anything recurrent you borrow for is a sign of bad management and temporary in its sustainability.

Taxes are always a drag on economic growth. If you keep putting on a little new tax that won’t hurt you, you will ultimately get to one that, in combination with all the others, economically kills you.

At this juncture my feelings are not excitement at what the polls say is an impending election win; my choice to stand in New England makes my participation in that event a lot less likely. My feelings live somewhere between apprehension and anger.

How did this harlequin political crowd manage to formulate such a financially disastrous voyage? If they had done nothing more than continue on from where the Coalition left off, if they had basically gone on holidays, giving instructions that nothing much should happen beyond the set course of 1997, then our position would be vastly better than it currently is.

I remember very well the excited glee as Labor members went around a barbecue in the Parliament House courtyard at the start of the global, but actually more US and Europe – financial crisis. They proclaimed that government had to “go hard, go early, go household”.

I remember thinking they should have added “go off your head and go broke”. It was like the kid who had just learnt a rude word in a foreign language and was showing all in the school yard how smart they were.

They had no knowledge or desire to genuinely delve into the vast complexities of the financial grammar or even to undertake the sober step backwards, to have a good sleep, cold shower and observe the situation and our very minor global role soberly.

Now, Michael Chaney, chairman of National Australia Bank and Woodside Petroleum, is comparing our financial fate to that of Ireland. I wish him better luck than I had a few years ago.

War On Obesity: “Have We Now Smited The Fat People? Oh No, We Lost!”

26 Sep

Senator Joyce’s brilliant speech on the economy and the national debt.

Whatever you do, don’t miss Barnaby’s hilarious genius towards the end:

All these endless “wars on …” remind your humble blogger of his little inspiration on that May day when they told us that they’d topped Osama Bin Laden. Without deigning to give us a smidgen of proof (again), of course:

The War On Error

Osama is dead.
There’s been enough said.
Now the war on terror needs a new figurehead.
I declare War on Pollies who can’t lie straight in bed.

Barnaby: Let’s Take A Closer Look At Our Spiralling National Debt

13 May

Barnaby writes for The Punch (emphasis added):

Let us first consider what Wayne Maxwell Swan said on the 10th of March 2009. He stated that “the emerging economies of China and India are now expected to slow markedly”. Because of this, Wayne Maxwell Swan stated “it will be necessary to increase Government borrowing”.

The result was Wayne Maxwell Swan increased by $125 billion the amount able to be borrowed by reason of the Commonwealth Inscribed Stock Act 1911 and the Loans and Securities Act 1919. This resulted in the nation’s credit card having a $200 billion limit.

Now as we know, China did not go into recession so neither did we, in fact China hardly missed a beat but Australia has now gained the ignominy clearly spelt out by Dr Ken Rogoff of Harvard when he noted the countries with the greatest cumulative increase in real public debt since 2007.

The order of infamy is as follows: Iceland is first, Ireland is second and Australia is third. Spain, Greece, Portugal and the US all experienced lower increases in their debt. I know that these other countries are already in crisis, so we start from a lower base but at this rate that will be a fleeting grace.

On Tuesday night’s budget, Labor sneaked in an Amendment of the Commonwealth Inscribed Stock Act 1911. Here is the most telling statement for where our nation is going under this Green-Labor-Independent Alliance. Under Part 5 Section 18 subsection 1 “omitting ‘$75’ and substituting ‘250’ ”.

Now that is in billons ladies and gentlemen and it is real money that really has to be paid back. If we have all this money stashed away under the lower net debt figure that is always quoted by Labor, then why not use some of this mystery money to pay off what we owe to the Chinese and others who we are hocked up to the eyeballs to.

The reason why we can’t is at least $70 billion that makes up ‘net’ debt is tied up in the Future Fund and student loans.

Of course, the public servants will not be happy when we use their retirement savings, put aside in the Future Fund, to pay off some of Labor’s massive debt. But that is what you must agree to if you believe in net debt. Likewise, you have to believe that you can track down all the students to pay all their HECS back immediately if you believe in net debt. Good luck patrolling the creeks and streams of Northern NSW looking for them.

So we are on the road and racing to serious problems. It is there in the figures. Debt ceiling issues in the US have now started visiting us in their primal form in Australia. I have been banging on about this, trying my best to warn about this, and generally vilified because of it and believe me, vindication is not what I was seeking.

We must realise what is happening or our nation will be like a bad accountancy client oblivious to the mechanism of their financial demise and the associated immense humiliation and hurt that comes because of it.

People generally do not understand the deficit and surplus concept, often believing that a surplus means all the debt has been paid. The surplus or deficit is broadly the profit or loss of the operation or the business of government.

Like a shop on the skids, the last three years profit and loss statements from 2010 have shown a $54 billion loss then a $49 billion loss which will be followed by another $22 billion loss. This was achieved while receiving record prices for our main sale items of coal and iron ore. How long will a shop like that be around for, and if you doubt the figures check their overdraft.

Where did the money go? What on earth have they done with it? How on earth will they pay it back? The answer to the last question is they will not, you the taxpayer will.

You will just have to spend more of your life working not for you but for the government. Instead of working Monday and half of Tuesday stacking bricks, shearing sheep, working behind a desk or on a checkout to pay your tax, you will have to spend more time through late Tuesday and Wednesday glancing at the clock saying more of my life is slavery for their incompetence.

Barnaby is right.

He has been warning of this since 2009. He quickly lost his job as Shadow Finance Spokesman, because he dared to say what most do not want to hear.

Now, more and more “experts” are slowly emerging from the woodwork to agree that Barnaby Was Right.

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