Tag Archives: wayne swan

Pride Is The Root Of All Evil

19 Feb

254502_287222121392119_2147028512_n

Yes, I know that St. Paul is oft-quoted as instructing that “the love of money is the root of all evil”.

I tend to disagree.

For some years now, it has been my sense that the real root of all evil is Pride.

From the Canberra Times:

The polls don’t lie. There is no hard data yet, but one of the country’s best pollsters says he’s begun to pick up a hard edge in the qualitative responses that isn’t being fully reflected (yet) in the quantitative results. There is no drift back to Labor. It seems the ‘bounce’ the government received over Christmas (a) wasn’t real, and (b) was simply because people were seeing less of Gillard and Swan. But they don’t accept this yet.

And so the chess game remains in stalemate. Every move to try and build up the party is countered by another blocking move from those in power. No one can advance. In the meantime, Tony Abbott creeps closer and closer to government until, when he finally walks into the Lodge, a great sigh of relief will be heard around the country. Not necessarily because voters want the Coalition, you understand, but simply because they are so sick and tired of the puerile, wretched and pathetic collection of such obviously self-interested people making up today’s Cabinet…

Currently, with Gillard leading and Swan as Treasurer, Labor will be booted so far into the outfield its remaining members will take on the appearance of a self-help group labelled ‘’Politicians Anonymous’’.

This doesn’t concern the self-interested cabal that’s currently in charge of the party. Swan knows in his heart of hearts that the job is beyond him; that he’s electoral poison – he just can’t bring himself to admit it. Gillard knows the same thing and there is even a bizarre rumour that, if the polls don’t change (and they won’t) she’s prepared to stand down at the last moment and let somebody else take the party to the election. That would deprive voters of the one thing they really want to do: kick the government.

Both Gillard and Swan need to swallow their pride and depart.

Mind you, since pride is, I think, the universal evil, merely seeing the back of Labor won’t change much.

As we have seen previously (The Sociopaths Who Are Drawn To Leadership), it takes a certain kind of person to become a politician. Even moreso, a successful one.

Are Gillard Govt Insiders Really Saying This?

16 Feb

Via Catallaxy Files reader and commenter “Mk50 of Brisbane”.

On the budget:

Just got a friend on the line from Finance. The whispers there are for a deficit of $30-35 Billion this FY if the lunatics continue running the asylum.

I DO stress these are just rumours.

On the government:

From an email just received from a contact in PM&C:

“… In all my years I have never seen anything like this. … The Gillard government are filthy, vicious, dirty, disease-ridden, perverted, corrupt, ghastly, disgusting, mendacious, revolting, retarded, thuggish, loathesome, atrocious, abhorrent, awful, beastly, contemptible, accursed, deviant, repulsive, despicable, foul, grimy, hateful, inferior, cretinous, hellish, horrible, appalling. lousy, thieving, nauseating, obnoxious, odious, sleazy, offensive, micromanaging, repellent, reprehensible, arrogant, repugnant, kleptocratic, rotten, stinking, terrible, vile, wretched, incompetent, sociopathic, schizophrenic, worthless, pretentious, wretched, arrogantly cretinous unhinged societal parasites of the foullest kind. Now, let me elaborate each point with multiple examples…”

It’s not a short email.

Top rant.

Humbling stuff.

And difficult to dispute.

Six On The Trot

15 Feb

Latest news:

The federal government’s fiscal position continues to deteriorate, with new data showing a $22 billion deficit in the six months to December 2012.

The government originally forecast a $1.077 billion surplus for 2012/13.

Well done Wayne. That’s six on the trot.

Mega deficits, that is.

In other news, the government’s gross debt is now $260 billion … and they’re scheduled to borrow another $2.45 billion next week.

UPDATE:

Click to enlarge

Click to enlarge

Swan’s Tax Avoidance Scheme

13 Feb

Quelle surprise!

A stunning revelation emerges.

From the Sydney Morning Herald:

Miners hoard credits to avoid resources tax

Mining companies Rio Tinto and BHP Billiton have built up a combined arsenal of $1.7 billion in tax credits that can be offset against future mining tax liabilities.

Exactly as predicted here on this blog, way back in December 2011 (GilSwan Conned – Mining Tax The Greens’ Pit of Despair)

Note well how the “progressive” (ie, international socialist) SMH follows the ALP (ie, international socialist) party line, by immediately switching the focus of this awful tale of inequity away from international companies, and onto an evil billionaire “Tall Poppy”.

Local Aussie miner, Andrew “Twiggy” Forrest:

And billionaire miner Andrew Forrest confirmed to Fairfax Media that his iron ore company, Fortescue Metals, would not be paying any tax under the Gillard government’s minerals resource rent tax this year.

Mr Forrest, who challenged Treasurer Wayne Swan’s claim that the tax would still raise billions in revenue for the government after being watered down during [exclusive] negotiations [by Gillard and Swan] with [foreign-owned multinational giants] Rio, BHP and Xstrata, appears to have been vindicated after Mr Swan’s admission that the tax has net a paltry $126 million in the six months to December 31.

”The record stands for itself,” Mr Forrest said.

And to make sure you do not miss the underlying propaganda message – that the real “evil” here is your fellow Aussie-made-good entrepreneur – the SMH chooses to headline the article with a photo of Mr Forrest.Not with one of the foreign-owned BHP, RIO, or Xstrata chief executives.

Wayne Swan would be pleased (The Galactic Hypocrisy of Wayne Swan ; Swan’s Anti-Australian Rant A Smokescreen For Treason).

While the focus has been on the dramatic shortfall in mining tax collections compared to original Treasury projections of more than $10 billion over four years, the most recent financial accounts of Rio Tinto and BHP Billiton show the two miners have built up $1.1 billion and $637 million in tax credits respectively.

The credits did not reduce the amount of company income tax they had to pay, but can be carried forward to offset future mining tax liabilities.

Just as predicted here.

Speaking of credit, we should give credit to the SMH for devoting one (1) whole paragraph to a misleading and deceptive recognition of the fact that the vomitous Wayne Swan singled out Aussie miners like Twiggy Forrest for exclusive vilification while belching out his galactically hypocritical smokescreen for treason:

Mr Forrest’s recent MRRT brawl with the government has seen him subjected to criticism from Mr Swan – part of which was his inclusion in the ”badly behaving billionaires” club that included Clive Palmer and Gina Rinehart. Sources have said that Mr Swan included Mr Forrest as a member of the billionaires in an essay in The Monthly – against the urging of his advisers.

Misleading and deceptive?

Yes.

In seeking to further the progressive (internationalist) agenda – in this case, through minimising damage to the PR image of huge multinational oligopolies, while enabling damage to the public image of successful local/national enterprises by invoking “Tall Poppy” syndrome – the SMH propagates the old revolutionary socialist strategy of “class warfare”.  And conveniently neglects to inform readers of the full picture.

You have to find that, at blogs like this.

Indeed, you have to read right down to the last two paragraphs of the SMH article to gain even an inkling of the truth – though of course, it is still not explicitly spelled out:

The major mining companies are loath to talk about the tax that they negotiated with the Prime Minister, Julia Gillard, and Mr Swan. They have kept their heads below the parapet this week as Mr Swan has been in the firing line.

The government has responded to the attack by suggesting various changes to the tax but the prospect of a big overhaul before the election is unlikely. The campaign by BHP, Rio and Xstrata that led to the super profits tax being replaced with the more benign MRRT was so potent that Ms Gillard will not take them on again over the next seven months.

Remember, the article is headlined with a generic “Miners hoard credits…” title.  And a photo of Aussie miner, Twiggy Forrest.

Only the fully alert and informed reader, one who knows that BHP, RIO, and Xstrata are majority foreign-owned multinational giants, is likely to note the above bolded words at the very end.

And possibly, just possibly, have a dawning realisation that something fishy … something against the best interests of Australians … is the real truth behind this story.

UPDATE:

Too late, Independent Andrew Wilkie wakes up and smells the coffee; says Andrew Forrest was right –

Mr Wilkie told Fairfax Media that he had been wrong to believe Treasury predictions of company liabilities under the renegotiated tax instead of the alternative arguments put forward at the time by Mr Forrest.

Mr Forrest had complained that the compromise to allow miners to write off the long-term value of assets from their mining tax liabilities had allowed the big three miners off the hook.

It is beyond argument that the government was wrong, is wrong, and Andrew Forrest is right,” he said.

For readers who have not read my earlier posts on this topic, the key point to understand from the above is this: A major reason why the redesigned mining tax favours the multinationals – unsurprising, since they designed it, in secret, with Gillard and Swan – is that the Big 3 miners have vast existing assets. Their redesigned tax allows them to write off the “market value” of their existing projects, and thus claim credits against any MRRT liabilities.

UPDATE 2:

Via Andrew Bolt’s blog:

Wayne Swan specialises on perhaps this government’s defining characteristic – to meet argument with personal abuse. And there is no fouler example than this – Swan accusing miner Twiggy Forrest in 2011 of being a tax dodger for warning of exactly the flaw that has made Swan’s mining tax a colossal flop:

Wayne Swan has accused mining magnate Andrew ‘’Twiggy’’ Forrest of trying to avoid paying tax, describing as ‘’bunkum’’ new analysis suggesting the world’s biggest miners would get a free ride under Labor’s mining tax..

Mr Forrest said new analysis by accounting firm BDO revealed Treasury forecasts of an $11 billion budget boost from the MRRT were an ‘’absolute fiction’’.

He said tax would allow the world’s biggest miners to wipe out Australia’s smallest because of the huge deductions available for the industry’s biggest players

EXACTLY what I argued back in 2011. A mining tax, designed by the Big 3 foreign-owned multinationals, behind closed doors, with the local miners locked out, in cahoots with the traitorous Gillard and Swan, one that enables the Big 3 to increase their oligopoly over the Australian mining industry, at the expense of far smaller, locally-owned competitors.

And claim tax credits and deductions for doing so.

Australia’s And Canada’s House Price Fate Entwined?

22 Jan

Ever since I first experienced the chilling majesty of the landscape and the warm conviviality of the people in that other former British colony, I have informed aspiring travellers that Canadians are just like us, but with an American accent.

Today, I offer you a little proof of the truth of my assertion.

Following my last post ( “The Easy Way To Know Where House Prices Will Go” ), a Canadian retweeted my article, along with the comment, “Coming to Canada”.

Perhaps understandably for a Northern Hemispherian, he got it downside up.

What’s happening with house prices now in Canada, is Coming to Australia.

Here’s why.

Like our RBA, the central Bank of Canada publishes a chart on its website that shows the all-important growth rate in residential mortgage “credit” (debt).  You can find the chart by visiting the Bank of Canada website, and clicking on “Credit Conditions” in the top menu –

BankofCanada

This opens a new window in your browser. Click on “Household Credit” –

HouseholdCredit_BoCanada

… where, if you scroll to the bottom, you will see this chart –

MortgageCredit_Canada

Well, well well.

Quelle surprise! (that’s for French Canadians)

As you can see, the growth rate in Residential Mortgage “Credit” (ie, debt) in Canada topped out at 13% per annum in May 2008.

Amateurs! 

We Aussies peaked out our pre-GFC housing debt annual growth rate at 22%, in March 2004. Here’s how we compare (click to enlarge) –

HousingCreditGrowth_AU_vs_CA

Click to enlarge

What caused that modest (compared to ours) slump in the growth rate of “Residential Mortgage Credit” (debt) in Canada?

That’s right … something called a “Global Financial Crisis”.

The critical growth rate in new “credit” lending did keep growing, mind you.  Just like in Australia, it never actually went negative.  But what is vital to understand is that, as in Australia, the rate of growth decelerated rapidly. 

Australian economist Steve Keen has empirically proven that the rate of change in the change in debt – meaning, the acceleration in growth of debt – is vital to keeping an “asset” price bubble inflated. It takes not just steadily growing debt – say, 5% per annum – but accelerating growth in debt, to keep enough new buyers armed with enough new debt to keep bidding prices ever upward.

The Bank of Canada, aided and abetted by the Canadian government, got the public’s foot rather gingerly back on the borrowing gas, by slashing interest rates to 0.25% (April 2009) .  You can see the result in the blue line of the chart above.  It’s the area of flat / barely accelerating “credit” growth through to 2012.  Since then though, the public’s foot has started to come back off the gas again.

Why?  Because the Bank of Canada started raising interest rates. From June 2010, Canada’s official interest rate has quadrupled to a whole 1% (wow!).

Following the GFC “peak panic” in late 2008 – early 2009, our Reserve Bank began raising interest rates again fully 8 months earlier than Canada. From October 2009 to November 2010, our central bank gradually increased interest rates from a GFC low of 3.25%, up to 4.75%. You can see the result of these interest rate movements as a small hump in the chart above (magenta line).

Thanks to record low interest rates – and unlike Canada, a massive injection of (borrowed) cash home loan deposits as a result of the Rudd Government’s doubling of the First Home Owners Grant – Australia’s long deceleration in housing “credit growth” from the stratospheric heights of 2004 paused, and briefly accelerated again. It reached a mini-peak of 8.3% per annum in May 2010 (when interest rates hit 4.5%), before those rising interest rates once again took the Aussie public’s foot off the housing-debt-growth accelerator. The RBA began cutting rates again in November 2011, hoping to get us back on the borrowing gas, but to no avail. We are now back to 3% interest rates … lower than the GFC low … yet the housing “credit” growth rate is still decelerating. Watch out below?

There are some other similarities between Australia and Canada.  They too, are considered to have a “commodity-based” economy. Just like our own, Canada’s economy relies heavily on exporting stuff they either dig up or grow.  Like Australia, this abundance of natural resources – and gargantuan Chinese “stimulus” spending to stave off the GFC – was a key factor in their economy (and house prices) not following the lead of the rest of the West.

But perhaps the most disturbing similarity between the economies of our two former colonies is this.

Euromoney magazine bestowed Canada’s Minister of Finance with their “World’s Greatest Finance Minister” award in 2009.

Why is this disturbing?

The award is judged by leading European banking and finance magazine Euromoney on advice from global bankers and investors.

Unsurprisingly, Euromoney magazine has a history of picking winners (lest we forget, “global banker” powerhouses like Goldman Sachs were actively betting on a collapse in their own mortgage-backed derivative products prior to the GFC) –

2006 to 2008 were indeed magic years for Euromoney’s awards selectors with “Best Investment Bank” 2006 going to Lehman Brothers who went broke in 2008. They’re blamed for much of the Global Financial Crisis. “Best at Risk Management” went to Bear Stearns who went bust in 2007. “Best Equity House” 2006 named Morgan Stanley and “Best Investor Services” favoured Citigroup. Both were bailed out in 2008.

Just like our own Treasurer Wayne Swan, who received the award in 2011, Canada’s Jim Flaherty supposedly “saved” their economy from recession too.

How?

Exactly the way the “global bankers” wanted, of course. By goosing the public back into supporting their (the bankers’) Great Western Debt-Driven housing bubble –

Interestingly, Canada’s “World’s Greatest Finance Minister” now says he is pleased that Canadian house prices have begun to nosedive –

“I don’t mind prices coming down a bit, too,” he said in an interview, after the latest data showed that home sales fell sharply in December compared with a year ago.

I wonder if The Goose (or the JHockey?) will respond the same way when Australia’s house prices respond similarly to our decelerating growth in housing “credit”.

P.S. I Just Had To Do This

4 May

* Apologies – it seems the Youtube video is not available in Australia. Although strangely, I can watch it with no problem. Oh well … a couple hours of video editing to entertain myself only. As you were.

UPDATE: Try this instead –

Swan’s Pot Is Slowly Boiling Dry

20 Apr

From Yahoo!7 News:

Get budgets in order, Swan tells Europeans

Treasurer Wayne Swan will tell his European counterparts at this weekend’s Group of 20 meeting in Washington they must continue to adopt the reforms needed to boost economic growth and get their budgets under control.

Ahead of the meeting, Mr Swan said Australia not only needed to get its policy settings right but would do everything it could to help the world avoid a repeat of the “devastation” caused by the global financial crisis.

“There is a difficult road ahead for many advanced economies, and we shouldn’t be surprised to see bouts of instability continue for some time to come,” Mr Swan said in a statement on Friday.

“That’s why I will first and foremost be making clear to European finance ministers the need to continue putting in place the reforms needed to lift economic growth and get their budgets in order.”

From the 2008-09 Budget forecast:

Total Revenue (estimate) – $319.464 billion
Total Expenditure (estimate) – $292.470 billion

From the 2008-09 Final Budget Outcome:

Total Revenue – $298.933 billion ( -$20.53 billion)
Total Expenditure – $324.569 billion ( +$32.09 billion)

Deficit – $51.44 billion

From the 2009-10 Budget forecast:

Total Revenue (estimate) – $290.612 billion
Total Expenditure (estimate) – $338.213 billion

From the 2009-10 Final Budget Outcome:

Total Revenue – $292.767 billion ( +$2.15 billion)
Total Expenditure – $339.239 billion ( +$1.02 billion)

Deficit – $46.472 billion

From the 2010-11 Budget forecast:

Total Revenue (estimate) – $321.822 billion
Total Expenditure (estimate) – $354.644 billion

From the 2010-11 Final Budget Outcome:

Total Revenue – $309.89 billion ( -$11.93 billion)
Total Expenditure – $356.10 billion ( +$1.45 billion)

Deficit – $50.5 billion

From the 2011-12 Budget forecast:

Total Revenue (estimate) – $349.961 billion
Total Expenditure (estimate) – $365.817 billion

From the 2011-12 Mid-Year Economic and Fiscal Outlook (November updated estimate):

Total Revenue – $344.11 billion ( -$5.85 billion)
Total Expenditure – $371.747 billion ( +$5.93 billion)

Deficit – $43.38 billion

Oh yes.

By the way.

We will not bother to mention the tens of billions in spending on such things as the NBN, and the Clean Energy Finance Corporation, that are not included in the budget.

Because they are hidden Off Balance Sheet.

Wayne. Europe.

Pot. Kettle.

Both slowly but steadily boiling dry.

When Frustration Over Politicians’ Deceit Spills Over

19 Apr

Regular readers know that there is far, far more to the story of the mining tax, and the knifing of popularly-elected PM Kevin Rudd, than what has been presented by politicians and the mainstream media.

[see Swan’s Anti-Australian Rant A Smokescreen For Treason; also The Galactic Hypocrisy Of Wayne Swan; also What Your TV Will Leave Out Of The Clive Palmer “CIA” Sound Bites]

Indeed, it is a veritable cesspool of international intrigue, plutocratic coercion and bribery, treason, and geopolitical manipulation.

So I am confident that many readers will, as I do, closely identify with the profound sense of frustration felt by all those who are awake to the far-reaching implications of the lies and deceit at the core of Australian politics; a frustration well enunciated here by Daily Telegraph writer Joe Hildebrand (h/t readers “Kevin Moore” and Twitter follower @Prronto for the link):

Why Swan’s Appeal To IMF Forecasts Is An Argumentum Ad Verecundiam

19 Apr

Argumentum ad verecundiam.

Appeal to authority.

A logical fallacy.

One widely popularised by warmageddonists, who have never conscientiously considered the simple truth spoken by Nobel prize-winning physicist Richard Feynman:

“Science is the belief in the ignorance of experts”

In recent days, Wayne Swan has once again been loudly touting the latest IMF forecasts. He wants you to believe that what the IMF says, is somehow proof that the Australian economy under his management is doing great, and will do even better in 2012-13.

But there is a very interesting, little known fact about the way in which IMF forecasts are put together. One that every citizen should be aware of.

Here is the Unconventional Economist Leith van Onselen, who has previously worked for the Australian and Victorian Treasury departments:

Click to enlarge

So, pointing to an IMF forecast is really nothing more than a deceitful  argumentum ad verecundiam put forward by dishonest politicians, who negotiate with the “authority” they appeal to concerning what that authority’s report/forecast will actually say!

Indeed, one only need read the latest IMF report to see that its forecasts for Australian growth are really nothing more than parroting of the government’s own wildly optimistic budget forecasts:

Click to enlarge

Remember this little piece of information.

Tuck it away near the front of your mind.

Ready and waiting for the next time you hear Wayne … or any politician … or journalist … appealing to a “report” by some Higher Authority like the IMF, or the World Bank, or the UN.

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