DEFICIT SPENDING BY A FISCAL FOOLEXCLUSIVE

DEFICIT SPENDING BY A FISCAL FOOL

EXCLUSIVE

I apologise for this article but I have to get it off my chest.

Idealogues and unlimited funds are a dangerous mix. Particularly when a simple Party-line vote apportions borrowings up to $300 billion to an intellectual and economic dunce.

“I have steered this nation through a GFC”, said Wayne Swan. What a load of frog droppings!

His hallowed 2012/13 surplus will be no more than illusory and entirely unrelated to our overall debt.

Swan was named the “World’s greatest Treasurer”. So was Paul Keating and it took a decade to recover from his profligacy.

Who votes for this title? No-one really, it’s just the opinion of the editor of “Euromoney Magazine”, an Aussie inspired low subscription monthly that flogs its list of subscribers to India’s telemarketers.

Coalition Treasurers don’t bother with these meaningless crowns of thorns, they don’t need to, they are too busy cleaning up after ALP cyclones and creating healthy surpluses.

David Copperfield’s helicopter mysteriously appeared on stage and the Gillard Government has mastered the art of similar illusions.

The AAA credit rating that Australia has always enjoyed is bestowed by the same corrupt Standard & Poor’s agency that vouched for US sub-prime contracts.

The World is currently in financial crisis due to unfettered corporate greed and socialist aspirations. The GFC was a godsend to all socialist governments because, in their minds, it justified reckless monetary stimuli.

Pet aspirational projects that had lain dormant for decades suddenly became a possibility, not because they were reparative but because “stimulus” was the socialists’ buzz word for “recovery”.

The Rudd/Gillard/Swan Government, in child-like excitement, embarked on a comedic spending foray from pink batts to $900 cheques, none of which stimulated anything.

Our economy was minerals-based and China-dependent. China suffered no damned crisis. Yet our mining sector continues to be injured and vilified by Swan at the very time it needed support. Too late now.

Mining projects are shelved weekly as Swan’s pipeline of investment is diverted to Africa, South America and Mongolia.

Australian miners are now raping Mongolia because they are not inhibited by Greens, high wages, Aboriginal land rights or retrogressive taxes. And Mongolia is but a rail trip from China.

Costello left Rudd a $57 billion surplus. Swan spent that and another $300 billion getting us to where we are now. Fornicating broke!

Obama spent $700 billion on his stimulus farce and now he’s broke and about to head over a fiscal cliff. But to understand the arrant stupidity of Rudd/Gillard/Swan, consider this:

The US has 350 million population, Australia 22 million.
The US suffered a monumental collapse of its financial icons, its massive auto industry and its housing market. It injected an initial $700 billion of printed and borrowed money into its economy with mixed results.

Australia, a mere 7% the population of the US, injected near to 50% of the US commitment ($300 billion and still going). And we were mostly China-insulated from the Euro/US GFC anyway. Now we are in trouble and the dumb socialists wonder why.

Our record low interest rate is a serious warning signal and reflects the state of the lack of confidence in our economy. (Have you noticed Swan for the first time admitted yesterday that, “some are doing it tough”?) Really Mr Swan? No-one believes your fudged figures anyway.

Next year, our interest rate will continue to decline, as it did to almost zero in Euro/US in fruitless attempts to kick-start growth.

Both continents are now far worse off and facing irreparable crises.

Italy, Greece, Portugal, Ireland and Spain are being forced into austerity measures in return for bail-out loans. But those enforced austerity measures ensure their inability to repay those loans. The Eurozone is doomed and on terminal life support.

Dismiss Swan’s dishonest rant! Rates between 1% and 3% on the back of historic levels of borrowings spells disaster.

The drop in the cash rate is designed to lift demand and if that is successful then rates will have to rise to dampen the ensuing inflation. Bonds become more expensive and interest effectively doubles the debt.

Gillard knows she is in trouble with her endless array of electorate-friendly “reforms”. Her solution is to have “trial periods” to keep the total costs off-budget and ensure the Opposition is left with an electoral backlash as is the case in QLD where Campbell Newman is left with an horrific debt of $60 billion. A cunning ploy.

Make no mistake, Julia Gillard is the most dangerous politician in Australia’s history. Wayne Swan the most dishonest.

With a toxic mix of criminality, incompetence, vanity and ideological, communist commitment, Gillard has led this country to unnecessary insolvency.

She is without principle or conscience and will not stop until she is stopped.

Now I can get back to drawing a cartoon.