I am glad they are cutting middle class welfare, or at least...

I am glad they are cutting middle class welfare, or at least freezing it. But it was a bit rich for Gillard to say we need to bring the budget back to surplus to ease inflationary pressures when this government has been throwing around dollars like a sailor at a bordello that just won the raffle.

Why is it Swan that we have such a massive deficit with record favourable terms of trade?

The budget relies on very heroic growth assumptions to get back into surplus. And of course then we have to pay off a huge accumulated debt > $100 billion.