Tag Archives: paul keating

Keating Was Right – US Treasury Secretary A “Gigantic Fool”

6 Aug

US Treasury Secretary Tim Geithner, in April 2011:

Interviewer (1st question): Is there a risk that the United States could lose its AAA credit rating? Yes or no?

Geithner: No risk of that.

Interviewer: No risk?

Geithner: No risk.

This is the chap who our own Paul Keating aptly described as a “gigantic fool” over his bungling of the Asian Crisis in the late 90’s in his then role as Treasury line officer at the genocidal bankster racketeers, the International Monetary Fund.

The same IMF that our Wayne likes to selectively quote … but only when what they say fits with his latest line of BS.

‘Nuff said about the competence of Geithner.

Who is our Treasury secretary, dear reader?

Be afraid.

Be very afraid.

Learn all about our new Treasury secretary, Martin Parkinson, here –

Our New Treasury Secretary Is America’s Mini-Me

By the way.

Keating’s no dummy.

Read what he predicted back in March 2010.

He was absolutely bang on the money –

Global Turmoil Looms: Keating

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Credit Contraction Heralds Recession

5 May

Does a contraction in the growth of Broad Money Supply say that recession is looming?  Australia’s most recent history responds with a resounding ‘Yes’.

Take a look at the following chart, showing the 12 month percentage change in Broad Money Supply. Note in particular the time frame of Australia’s last recession – Paul Keating’s “recession we had to have” – back in the early 1990’s. See how Broad Money Supply growth peaked in June/July 1989, before falling sharply and eventually turning negative in Nov ’91 – Mar ’92  (click image to enlarge):

Now, consider the dates of the most recent peak (and fall), coinciding with the onset of the Global Financial Crisis.  Broad Money Supply growth peaked again in December 2007 – coincident with the peak in the Australian (and global) stock markets:


Broad Money Supply in Australia has been falling ever since December 2007.

According to John Williams of ShadowStats (commenting on the US economy) –

Money supply and credit are now generally contracting. We’re going to see an intensified downturn in the near future. I specialize in looking at leading indicators that have very successful track records in terms of predicting economic or financial turns. One such indicator is the broad money supply. Whenever the broad money supply–adjusted for inflation–has turned negative year over year, the economy has gone into recession, or if it already was in a recession, the downturn intensified. It’s happened four times before now, in modern reporting. You saw it in the terrible downturn of ‘73 to ‘75, the early ’80s and again in the early ’90s.

Global Turmoil Looms: Keating

27 Mar

From The Age:

Paul Keating has delivered a bearish assessment of the world economy, warning that another bout of global turmoil is possible if trade and capital imbalances go unaddressed.

The former prime minister and treasurer last night argued current account surplus nations such as China and Germany must urgently shrink their surpluses by lifting the role of domestic demand.

Failure to do so could trigger another sharp deterioration in global economic conditions, he said, damaging Australia’s growth prospects.

Mr Keating also casts doubt on China’s ability to continue growing at recent rates of near 10 per cent. He said this rate was being artificially supported by excessive investment and its pegged currency, which makes its exporters more competitive.

“Our biggest customer China is growing for the moment… but only on investment steroids,” he said.

The former prime minister also highlighted risks to foreign countries with large debts, such as the US and Europe.

In the event of a double-dip recession, Mr Keating said the developed world would not have the funding to support massive fiscal packages.

“If a financial crisis comes in the future there won’t be the method to deal with it as we’ve seen in this crisis,” he said.

Keating is correct.

Thanks to Rudd Labor’s panicked, massive “stimulus” spending – tens of billions of borrowed money wasted on pink batts, foil insulation, and Julia Gillard Memorial School Halls – Australia no longer has a safety net.

And despite the daily warnings of crisis dead ahead – now coming even from former “world’s greatest treasurer” Paul Keating – Rudd Labor is continuing to borrow well over $1bn a week.

When the next wave of the GFC comes, everyone will know that Barnaby is right.

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