ozbailout guarantees high futureinterest rates, page-10

Perhaps this explains the situation & notice in particular the last line.

AUSTRALIAN REPORT
A POLITICAL "RUDD-ER" - TURNED HARD TO "PORT"
In nautical terms, to turn to "port" means to turn LEFT. And that is what the Rudd Labor government is doing. There is now a political tidal wave of money rolling out of Canberra. The government is set upon borrowing and spending from one end of the land to the other in order to "save" the Australian economy from recession. Prime Minister Kevin Rudd announced the $A 42 Billion Dollar stimulus package on February 3, warning of what he called "the unfolding national and international economic emergency". Mr Rudd said the government was prepared to plunge into a "temporary" $A 22.5 Billion budget deficit this year in defence of Australian jobs. The new budget deficit compares with projections of a surplus of $A 5.4 Billion back in November and a massive $A 21.7 Billion surplus in the federal budget of May 2008. That is a turnaround in the federal budget of a staggering $A 44. 2 Billion.

It Gets Worse:
The federal budget deficit will expand further to $A 30 Billion in fiscal 2010 and 2011. Mr Rudd said that the global financial crisis would punch a $A 115 Billion hole in the government's expected revenues between this year and 2011-12. Taxes from businesses alone is set to shrink by $A 76 Billion as profits wither. The contraction in business profits is the key! If the Rudd government expects a fall in business profits of a magnitude which reduces its tax take by $A 76 Billion, what does that say about where businesses in the Aussie economy will be? They will be flat on the floor!

Indirectly, the Rudd government is forecasting a massive and drastic economic depression in Australia.

And Still Worse:
Since September 2008, the total amount that the Rudd government has promised to spend on stimulating the economy comes to $A 88.7 Billion! Reflect upon this number. They will have to borrow ALL of it. They would never dare raise taxes by that amount and then spent it. Mr Rudd and his Treasury will borrow it. Australian taxpayers can "look forward" to paying the interest over the decades ahead. All deficit spending is (in real terms) deferred future taxation - with the interest costs added on top. How can the prospect of higher future taxes "stimulate" anything?

He Told The Truth - And Ignored It:
"This is a collapse in government revenues", Mr Rudd said in Canberra on February 2. There was no thought of cutting government spending to match the fall in tax revenues, the government has instead gone on a borrowing spree beyond Gough Whitlam's wildest imaginings.

And Where Is The Aussie Economy?:
Australia's economy grew by 0.1 percent in the third quarter, the weakest pace in the past eight years. Consumer prices declined by the most in 11 years and the jobless rate rose to a two-year high of 4.5 percent in December. At present, the Aussie economy is in a sliding collapse, matching the collapse in federal tax revenues. Australian private sector credit shrank in December for the first time since 1992 as foreign banks cut lending to local companies. Now they want $A 75 Billion to be paid back.

The annualised growth rate of the leading index of economic activity sank to -2.2 percent in November from -0.3 percent in October. Consumer prices dropped by 0.3 percent in the fourth quarter of last year from an increase of 1.2 percent in the third quarter according to the Australian Bureau of Statistics.

The recession is here. And what does the Rudd government do? It borrows Australia towards oblivion.

©2009 - The Privateer
http://www.the-privateer.com
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(reproduced with permission)