August 7, 2013

Fiscal Fantasy

The Age, Illustration: John Shakespeare

 Both parties peddle a fiscal fairytale - sure do!  Thanks Mr Henry, but we already knew that, and the problems created by Labor, and the problems being created by both the ALP and the LNP are much, much, much, much bigger than mere inter-generational equity and the cost of healthcare.  If only! 

The joint is being run by blithering idiots with an overflowing basket of vacuous sound bites and cooing noises. 

It's not going to change any time soon.


  1. Noooo.... it ain't.

    I note yesterday that the "Tories" have sedulously followed form. In a time of falling revenues they propose reducing government income by offering up a company tax reduction on the altar of trickle-down. Joe Hockey apparently believes that this will see businesses employ more people. What arrant nonsense and, if he truly believes such, what an obsequious fool. Business will pocket the money. Dead simple. Do the banks announce hiring drives with each record profit announcement?! Just like the GOP in the US these fools believe that giving money to business will see them employ people. At least neither side has - yet - suggested that lowering the income tax rates for high flyers (who generally pay as little as possible anyway) will stimulate employment. Plenty of time yet though.

    I note one of the board members of the Reserve bank (didn't hear who) has expressed incredulity at the proposal. Something about balancing government income against National Disability Schemes, paid parental leave schemes and school funding was mentioned after the incredulity...

  2. Libs and business council also want to up the GST, Father. Business is suggesting it should be extended to fresh foods - yeah, obesity and chronic illness for all! Can't even begin to articulate how angry this lazy and mindless thinking makes me feel. (Oh yeah, and Coke should reduce the sugar in their drinks, good-o, that should balance out a tax on real and fresh food!)

    You forgot to mention Rudd's tax on banks, to cover off the gov't guarantee of accounts under $250K - the most legislated and stable banks in the world - the tax on banks that will be passed straight to consumers. Another "good-o",'cause that's bound to lead to an increase in consumer confidence and spending! Sure it will.

    Who ARE these idiots? There's SO much stupidity I can't even keep up.

    And then there are those who pull out their member to dip it into a glass of wine ... and people wonder about such behavior, what would drive a member to such a thing. Well, I can think of a few things in politics that would drive many of us to our own acts of insanity.

  3. Anonymous11:23 PM

    The sad reality is Australia is going the way of the US, the UK, Europe, China, Japan, most of the world really, except Afghanistan because it's been rooted since genesis.

    Yep, things are looking grim, our wise and noble leaders need cash, and they will get it one way or the other. That's what debt does, it's the money drug.

    You see, what we are witnessing globally is a massive shift of wealth from the savers to the debtors. Sad that the prudent have to get punished for the recklessness of others: our very clever global leaders of finance and ... war, them economic geniarses that created this insanity in the first place.

    Zero interest Rate Policy (ZIRP) is a tax, a tax on savers, and that is what is happening here now, just like most others nations - savers are now going backwards, more so if they pay tax on their savings - elsewhere they go backwards faster.

    And what do the financial giants do with all that cash they skim from the punters, here's a possible clue:


    Look at the left hand column then scroll down and have a look at the period: 8th July to 8th August (today). What's different with that period from all the above dates? It's historic, but you'll never read about it in the MSM.

    Now have a look at this

    What do you think this indicates?


  4. On a very blunt reading, we're headed back to coined money; money coined in gold (and or silver). I wonder who's head will be struck on these coins??

    Any tax is, of course, a transference of wealth. ZIRP is the logical extension of that - bit like raising the tax free threshold to, say, $90,000 and taxing everything above beginning at 60%. Government requires income and when income falls, government legislates itself other income streams. Gillard should never have caved over the "Mining Tax". The abortion she wound up with is next to useless and sees the mining industry spending more on self justifying and aggrandising advertising than the tax nets. The mining conglomerates ran a hugely successful campaign of utter bullshit and misrepresentation; a fear campaign as successful as Rudd's WorkChoices job of 2007. The difference being there was an alarming amount of truth embedded in tha latter campaign. The miners had it that the industry would collapse under the extraordinary burden of the proposed tax. So successful was this out and out propaganda campaign that when demand fell most punters think that the following slowing in mining "boom" is a result of that tax. Doesn't help when politicians deliberately lie and claim projects are cancelled because of it.

    The banks, Caz, are filth. I see no problem with then contributing to the "guarantee" if it remains. They operate on crude margins now that are far better than those prior to the GFC. They resemble those of the eighties. I see no reason why their constantly record breaking profits - announced regularly each quarter - can't support such. Abbott sees no problem with "large businesses" contributing 1.5% to his parental leave scheme on behalf of everyone. I'm regularly astounded (though, due that regularity, increasingly not so) at how the banks seem to think they - and more so their profits - are somehow sacrosanct. The Bankers Association's stance almost amounts to wanting their ever increasing profits enshrined in legislation.

  5. Anonymous9:06 PM

    I doubt it Father Park, but that doesn't mean gold is not going to play an overt role in the monetary mix of the future - if for no other reason than there being no other choice. Just how it is done is up to the financial giants.

    That said it would appear that the flow of gold has increased considerably since Christmas, and the GOFO rates tell us that gold is in backwardation, and it shouldn't be. You can do your own research on all that.

    Who really knows what this is all about except there is huge demand for physical gold and fewer and fewer want to sell. In short buyers of physical gold are prepared to pay a premium to get gold now, rather than buy a cheaper paper contract/s that could be converted into gold in a couple of months time.

    And owners of physical gold do not want to take advantage of the arbitrage (free cash in this case) swapping their physical for paper, maybe the gold won't be there in two months.

    Methinks the giants are positioning themselves for what is coming, in the not too distant.

    BTW, in the corrupt paper/futures gold markets one has to realise that every ounce of gold has been (fraudulently) sold about 100 times to 100 different "owners"- think about that, and the following makes sense, and some of the above.

    It appears the poo is getting even closer to the revolving thingy.


  6. The banks will pass the cost straight to consumers, Father. And what will the gov't do with the extra revenue? One has to ask, also, why this was suddenly so pressing, when it was no concern at all over the last few years.

    And did anyone else notice that Rio Tinto didn't need to pay a single cent in tax last year? And they got a $74M refund.

    Wish I had the same accountant doing my return.