Disclaimer

Disclaimer. After nearly 40 years managing money for some of the largest life offices and investment managers in the world, I think I have something to offer. These days I'm retired, and I can't by law give you advice. While I do make mistakes, I try hard to do my analysis thoroughly, and to make sure my data are correct (old habits die hard!) Also, don't ask me why I called it "Volewica". It's too late, now.

BTW, clicking on most charts will produce the original-sized, i.e., bigger version.

Sunday, July 13, 2014

What budget emergency?

The Abbott government argues that its swingeing budget cuts are necessary because of a "budget emergency".  As my mate Saul Eslake comments:

Saul Eslake of Bank of America Merrill Lynch said the incoming Conservative government in Britain had faced a "budget crisis" and a "debt emergency" in 2010. The projected deficit was 10 per cent of gross domestic product, and net public debt was in excess of 60 per cent of GDP.

To apply similar terms to Australia with a prospective deficit of 2 per cent of GDP and net public debt of 15 per cent of GDP was "to abuse the English language".

Indeed.


But even if it was a budget emergency, why is the burden being born by the poor alone?  Because the so-called "libs" are hostile to the poor.  The budget emergency is confected, not real.  And they're using it to rush through cuts to welfare dear to the hearts of the rabid right.



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