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nero_bolt · ‎04-12-2014

Given the Pin Up Boy -- Bull Shorten is devoid of any constructive policy to GROW the Australian economy , he is seen here for what he is ---an ALP Leadership Fraud.

Like so many ALP leaders he avoids like the plague to make constructive policy suggestions to the people of Australia -- he is incapable along with his party of being constructive in any way.

Andrew Bolt –, Thursday, December, 04, 2014, (8:10am)

Time to get cracking. We need to scramble if we don’t want to get a whole lot poorer fast:

Outgoing Treasury Secretary Martin Parkinson has issued an urgent call for corporate and personal tax cuts, warning that our tax system is stuck in the 1950s and that Australians’ standard of living will collapse without reform…

“ ... (U)nless we tackle structural reform, including fixing our fundamental budget problem, we will not be able to guarantee rising income and living standards for Australians."…

High corporate and personal tax rates are the key priorities for reform, he said, as inflation pulls the average wage earner into Australia’s second-highest tax bracket over the next decade and corporate tax rates fall globally.

Just to say that our tax rates are too high is to get that sinking feeling. How on earth can that argument be successfully run when the culture and the political opportunists are all against it?

Dr Parkinson acknowledged the difficulty in winning the “hearts and minds” of Australians in arguing for corporate tax cuts, but said that work done by Treasury showed “about half of all the benefit of a corporate income tax cut flow back relatively seamlessly towards employees ...

Good luck with that argument. It simply cannot be won unless Labor acknowledges the truth of it and fights to save Australia, rather than to destroy Tony Abbott.

Attack the Abbott Government all you like - and I have - but Labor is the true barrier to saving this country from the crash to come. If you doubt it, then listen again to Bill Shorten last night refusing to admit the plain truth that we are spending more than we now afford on health and welfare.

It would very much help the Abbott Government’s case to drop its paid parental leave scheme. That would not just avoid yet another humiliating Senate battle but would demonstrate that, yes indeed, the money truly is gone. It would then deny Labor the cheap comeback it’s exploited for a year, the one Shorten trotted out yet again last night:

You’ve said what would you do? ... Well here’s some options where Tony Abbott doesn’t even have to go to an election on. He could do these tomorrow. Dump his paid parental leave scheme, which is billions of dollars ...

Why does the Government keep offering Labor this free kick?

Just get the topic every time to Labor’s dangerous irresponsibility - both in office and now. A little scrutiny is enough to have Shorten struggling for more than three words:

BILL SHORTEN: Yes, the concepts you’re asking are about sufficiently important. I just can’t give you a three-word slogan… you go for growth ... we’ve got to go for growth.... you go for growth… The only way this country will get ahead is by inclusive growth.... you can have inclusive growth ...

Which party - other than the Greens - doesn’t want growth? LABOR The aim is shared. It’s wishing the means that’s the problem

fourandsixpants · ‎04-12-2014

ref. your (paid) question nero:

Why won’t Bill Shorten admit we’re running out of money?

..............................................................................................................................................................

Australia is not 'running out of money' !!! We are based on a fiat currency *Doh!

Submission to the Financial Services Inquiry

Feb 2014

Underlying Principals

This submission starts with the premise that Australia is an economy with a fiat currency and a floating exchange rate. The Commonwealth government is the primary public sector entity with the power to impose taxation upon private sector entities and is responsible for providing financing to state and local governments. The primary purpose of the Commonwealth government is to support the private sector, not to compete with the private sector.

Funding the Economy

There are two widely held but incorrect views regarding the way in which the Australian Economy is "funded":-

 The Commonwealth government is required to borrow from the private sector in order to fund its spending; and

 Australian banks (Authorised Deposit Institutions or "ADI’s") must first borrow funds in order to lend to customers

These mis-perceptions appear to derive from the assumption by non-financial private sector entities that the fiscal constraints that apply to the private sector also apply to ADI’s and the government. In fact, this is not the case, and these mis-perceptions lead to a misunderstanding of the constraints that apply to the way investment takes place and the way other aspects of the Australian economy function.

In this submission, we simplify the primary Australian institutions to the Commonwealth government itself and the Australian central bank (the Reserve Bank of Australia, or the RBA). Any reference to the Commonwealth government includes the functions of the Treasury and a reference to the central bank includes the functions of the Australian Office of Financial Management (AOFM). This simplification does not have a material bearing on the concepts and analysis discussed and avoids an unnecessarily technical discussion.

Government Spending and Borrowing

Unlike a private sector entity, Commonwealth government spending is not constrained by a need to borrow a-priori. All spending by the government takes place by directive. In simple terms, when the government spends, it does so by debiting the government’s own reserve account with the central bank and crediting private sector deposit accounts. Taxation by the government is not required in order for it to direct spending. Without a self-imposed debt ceiling, the size of the government’s reserve account is unlimited and the government may direct spending on any and all projects it considers worthy without imposing taxation of any kind. The effect of taxation is to reduce private sector demand, thereby creating unemployment which allows the government to acquire real resources from the economy in a non-inflationary way. Net government is constrained, in particular by the availability of real resources (raw materials, labour, food, energy etc) – this is discussed in more detail below. But a lack of funds to implement its spending can never be a constraint for a government of an economy with a fiat currency.

Net spending by the government results in an increase to the government’s aggregate deficit and an increase to the private sector’s equity (or a reduction in its leverage), since net government spending has no associated liability for the private sector. A government debt is a private sector asset.

go here to read how to fix the bs mess and then pass it on to TA & his mates please: http://fsi.gov.au/files/2014/04/Name_withheld_1.pdf

fourandsixpants · ‎04-12-2014

.......In summary, the aggregate size of the government’s deficit is not a constraint on its spending...................................................

Conclusions

 The government is not like a private sector entity, nor is it like a household. The fiscal constraints that apply to private entities do not apply to the Australian government which can issue its own currency.

 Government debt is a private sector financial asset (savings). As a country with a fiat currency and a floating exchange rate, the Australian government can always choose to direct spending on projects it considers worthwhile and can always meet its fiscal obligations. The nominal size of the government’s aggregate debt is not a meaningful indicator of economic performance – it is not, and should not be, a constraint on government investment in the economy.

 To support the private sector, government debt should increase in times of reduced aggregate private sector demand and visa versa, meaning the government should act fiscally in a counter cyclical manner. Australian government spending is only constrained by the availability real resources in the economy, and the government’s ability to utilise these resources without undesirable inflationary consequences.

 Australian banks, and the Australian economy are not reliant on off-shore investors to source funding. However, current prudential regulatory requirements with respect to banks’ liabilities, combined with other structural aspects of the economy, create a requirement for Australian banks to borrow funds from off-shore to transform the nature of their liabilities. While these requirements are designed to safe-guard the financial system, they expose banks to volatility in off-shore economic conditions and capital markets, and introduce greater financial risk to the Australian economy.

 A system of forced savings results in current demand leakage. A larger Australian superannuation system has resulted in higher private sector leverage, lower interest rates and larger government deficits to offset this demand leakage while maintaining or growing GDP. A larger pool of private savings does not increase the availability of "funding" to the economy and has not led to greater investment. Funding is always available in Australia for credit-worthy ventures, with or without superannuation, since banks and the government create that funding so long as it is in Australian dollars.

 Investment in infrastructure and other projects considered to be attractive from a public policy perspective is not constrained by a lack of funding, either public or private. Rather, private investment is constrained by a need to receive commercially acceptable returns. Public investment is constrained by the availability of excess real resources which may be purchased by the government and the effect this may have on price inflation.

 In an economy with an aging population, a system of forced savings, a current account deficit and near zero interest rates, larger government deficits will be required to maintain GDP growth in the absence of a significant to change to the current account position (greater exports).

 Excess competition in the banking system is undesirable and can reduce lending standards and bank asset quality generally since banks are profit driven entities. Potential negative effects for the economy of reduced banking competition should be addressed. A larger Australian corporate bond market may be beneficial to the economy if it leads to a more efficient allocation of risk capital to commercial projects, but it will not provide an additional source of funding to the economy.

fourandsixpants · ‎04-12-2014

lastly and most importantly:

Recommendations

Government annual budgetary considerations should be determined in the context of unemployment and inflation, and should not be influenced by aggregate government debt levels. The objective of the government’s fiscal policy should be formalised in a similar manner to the description of the RBA’s duty

Monetary policy and fiscal policy are not independent. A mechanism should be found to allow both to operate in a co-ordinated manner and formalise the equivalency of their objectives

Mandatory contributions to superannuation should be reduced or stopped



Banks are quasi-public entities operating in a less than fully competitive environment and bank profitability should be regulated to reflect this. Allowing increased bank competition to reduce profitability is not desirable for financial stability.

Responsibility for spending on Australian infrastructure should fall to a greater extent on the federal government and should be managed in the context of the government’s objectives with respect to unemployment and inflation. Infrastructure spending should form part of the government’s budgetary position. Further consideration should be given to mechanisms by which the government can support private sector infrastructure investment (including subsidies, tax breaks, guarantees and other forms of support) that further public policy in terms of infrastructure, employment and inflation

cherry*135 · ‎04-12-2014

Labor didn't do it...14 months down the track the spotlight is directly on Abbott and Hockey...

poddster · ‎04-12-2014

@***super_nova*** wrote:
Why does not Hockey/Abbott admit they are way over their heads and call double dissolution, as TA promised?

How do you explain this away ?

I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.

ladydeburg · ‎04-12-2014

I just watched Leigh Sales and PM Abbott and I must say I was impressed. He answered all the hard questions, admitted to a few things he previously avoided and over all gave a very credible and reassuring performance.

I also watched Bill Shorten the night before and I was shocked that this person is masquerading as a future PM. Leigh Sales exposed him for an empty vessel only capable of empty rhetoric. It was shocking to watch.

idlewhile · ‎04-12-2014

@the_great_she_elephant wrote:
@alexander*beetle wrote:
Now I see it's Andrew Bolt. Says it all. What a lowlife he is.

Not so long ago, as I recall, a poster here got reported and hounded off the boards for posting long tedious C&PS. Obviously the people who complained so vociferously about her must have had a change of heart. Or maybe it's not what you post but who you are that determines your freedom to bore the poants off everyone.

Agree, it seems the bold and red and long c&p hasn't abated here at all. I feel if you have a valid point then put it, no need to bold it in red, it's a bit rude. Mental health issues maybe, lol.

No need to do it in a snipe either. No offence intended to you tgse.

cherry*135 · ‎04-12-2014

The coloured font is a feature of this board, that members are free to use if they want to....

fourandsixpants · ‎05-12-2014

Have you read or made any commendable contributions to any of the posts in this thread or do you just come here with a measuring tape and to look at the pwetty colours ?......red not your fav colour?

maybe you will find this more attractive:

.........TA's been having a bad hair week