swan for pm, page-8

from Dan Denning

--They like him. They really like him!!

--In an announcement sure to make Kevin Rudd jealous, Treasurer Swan has won Euromoney Magazine's award for the world's best finance minister. Swan beat out finance ministers in Iceland, Ireland, Spain, Portugal, Italy, and Greece for the award.

--China's role in supporting Australia's economic performance was not mentioned. But we're sure Swan will graciously acknowledge China's $3 trillion credit and local government debt binge in his acceptance speech. After all, without China's debt bubble, there would be no steady demand for Aussie coal and iron ore.

--But let's not be churlish and deny the Minister his 15 minutes of fame. He better enjoy it while it lasts. It may even be 20 minutes! The International Monetary Fund went out of it way to salute Australia's strong fiscal position and industrial-world-leading low public-debt-to-GDP ratio. The fact that Australia did not have a significant public debt before the Treasurer's arrival wasn't mentioned.

--This reminds us of an old joke: What's the best way to become a millionaire in the stock market? Start with 10 million!

--With Wayne Swan at the helm, Australia's federal budget has gone from surplus to deficit (the chart on the left). And Australia's gross government debt-to-GDP ratio has gone from less than 10% to over 20% (the chart on the right). We'd love to find a job where you can win an award by spending money somebody else had saved up, and then, when you run out of that, spending money you don't have and leaving the bill for someone else. Well done, Wayne!