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Iain Hall:

Indeed this is entirely expected and so long denied by Labor.
Cheers Comrades

Originally posted on The Red And The Blue:

The breaking news this afternoon that the Gillard government is abandoning its surplus commitment comes as no surprise whatsoever; I have been watching the live coverage of Wayne Swan on Sky News, and the self-important bubble looks so frightened I wonder if he’s wet himself.

This is a short post on account of the fact I’m busy for the rest of the day, but I will post again this evening, but whichever way you cut it today’s development was foreseen by everyone except the Treasurer himself.

It underlines how much political hot air has been expended by Gillard and her Treasurer in the face of what virtually everyone else — including this column — called, months ago, as a likely financial year deficit of between $12 and $15 billion.

And it vindicates shadow Treasurer Joe Hockey’s line that this government will never produce a balanced budget.

A $3.9 billion deterioration…

View original 116 more words

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6 Comments

  1. deknarf says:

    Damn Iain. Already made my lefty, latte sipping comments on the other blog. Your’s much more interesting, at least you are human enough to respond and debate! ;-)

    Well at least they are endeavouring to minimise the amount of the deficit. Don’t think that Phoney and the NO Coalition would have done much better in the same circumstances, but then again we would have been in a recession had they been in power. The general consensus in the populace appears to be that in the current conditions a surplus is not the real issue and most people are not fussed if we don’t get one. TA and the NC had better be careful how they use their battering ram on this one given the success of the Ashby/Slipper and Thomson one’s, both of which seem to have run out of steam — funny that.
    Given that some 97% of the voting public dislike Phoney the Libs would be better served in looking for another leader to redress the 52:48 Labor:Lib poll conveniently not reported by the conservative media recently. Could I suggest Joe Hockey or Malcolm Turnbull?
    TA not fit 2B PM!
    (cut and pasted it for you Deknarf :) )

  2. Iain Hall says:

    Well as has previously been the case when Labor comme up short on their promises the problem is not what they have done (and I do endorse their desire to be fiscally responsible) but how they have been furiously insisting that they WOULD achieve that mythical surplus as recently as the last fortnight when they must have known that there was almost no chance of them achieving their goal.
    Don’t know where you get your poll figures but I don’t get that vibe at this remove from Latte land :)

  3. Tel says:

    http://www.aofm.gov.au/content/publications/reports/AnnualReports/2010-2011/images/04_Part2-2.gif

    There’s the chart from the annual report ending June 2011. They expected to need an extra $40 billion of debt issued, and forecast that it would level off around $220 billion total.

    What actually happened was they ended up issuing an extra $58 billion of gross debt and removed the chart from the annual report ending June 2012.

    Situation now is this: Total Commonwealth Government Securities on Issue – $260 billion.

    Blew right through their $250 billion debt ceiling, which they quietly bumped up to $300 billion in May this year. It’s a shocker. Wayne Swan should learn to say no, but that would require self discipline.

  4. Ray Dixon says:

    It doesn’t matter if there’s a deficit. It makes sense for the government to continue to support the economy by spending and providing services, to keep us out of recession. Same goes for the still manageable debt. I’d much rather the government takes the losses and invests for the rest of us. That’s what they’re supposed to do. Broken promises? No, Iain, they just fell short of their target due to reduced tax revenues. That’s not a “broken promise” and your lot carrying on about it means nothing to the average Joe who still has a job, a house, a car and a future. He’d have none of that if Abbott and Fat Joe Hockey were running the place.

  5. Tel says:

    Believing that the government should “support the economy” is exactly the same as believing that Wayne Swan is the smartest investor in Australia.

    Of course they have no intention of supporting the economy, they just offer handouts to the politically connected. This saps the productivity out of the real economy and removes incentive for anyone to strive for excellence. People just look for more cunning ways to game the system.

  6. Ray Dixon says:

    Not everyone can or wants to ‘strive for excellence’, Tel. The neo-con theory that the govt should only gear its fiscal & economic programs towards the rich and/or the ambitious is seriously flawed – given that it has always been the case (and always will be the case) that the vast majority are mere plodders. Then there’s the ‘drones’. They exist and need to be helped. The ‘winner takes all’ philosophy is a recipe for creating social unrest and a massive underclass. Australia has enough wealth to share around and drag the lazy or less inclined along with them. That, in my opinion, is exactly how a government should operate.

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