The $A and a Double D election

What has struck me almost daily when in Canada and the United States was how strong the Australian dollar is compared with the local currencies. We are not so productive relative to them that things should look so cheap to me. I think the $A is heading for a fall, and so does Glenn Stevens:

RESERVE Bank governor Glenn Stevens has warned investors to brace for a slump in the Australian dollar when the US Federal Reserve starts to lift interest rates and questioned whether ultra-loose monetary policy was fostering the right kind of risk-taking.

There are so many ways the Australian economy might unravel. I watch from this distance the Opposition and non-Coalition Senators playing Russian roulette with the Australian economy. It’s one thing to have a different policy view but to let the many economic problems Australia has fester so that they can take over an economy that has been devastated by the fiscal measures they introduced is no small worry.

There will almost surely be a double dissolution in which the question will be whether the country wishes to live in a fool’s paradise or whether it wishes to deal with the problems that are clearly visible. I think Australia may still be able to work it through and come to the right decision in a vote. Or perhaps not, but that will likely be the kind of election we will be having in the next year or two. Because whatever else, things cannot go on as they are.

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76 Responses to The $A and a Double D election

  1. Stephan

    If Australians wanted fiscal responsibility I’m not sure why they went with the only major party to submit zero costed policies to the PBO for last year’s election.

    So if there was a DD (and I think deep down we know there won’t be), who’s to say Tony would come up with any better a plan than the absolute corpse of a budget he’s dumped on the Senate already?

    The man simply has no ideas – which is why he’s outsourced his policy direction to the BCA and IPA, tried valiantly to moderate the politically insane output that resulted, and still failed so spectacularly in reading the electorate’s reaction to his ideology that he’s now in reverse landslide territory and holding.

  2. Oh come on

    The bizarre universe of infinite government resources that Stephan lives in! It’s a world where Labor politicians can vomit up a plethora of wildly underfunded, open-ended entitlement programmes that promise everything to everyone in the vain hope this will win them a bump in the polls and perhaps another stint in government – these political hail Mary passes are termed “ideas” by Stephan. If you don’t engage in this kind of grossly reckless policymaking, you’re tarred as “lacking ideas”.

    Jesus wept.

  3. Blogstrop

    The accumulation of idiocies continues.

    I thought having a large crooked media contingent and a badly gerrymandered Senate (not one man one vote but loaded up with mendicant small state votes) was bad enough.

    But now we have to add to that the gaming of the senate vote, the incurable decay of the Labor Party, and the cognitive impairment that has labelled a weak set of budget measures as cruel and heartless. Of course they wouldn’t be able to do that if it weren’t for the combination of low info voters and lying bastards in the media, plus assorted mental cases loosely rferred to as da left.

  4. Mike of Marion

    Y’ just wonder if it is all beyond hope!

    The MSM Estate is barracking 75% Green socialism, 20% Labor and 4 percent PUP.

    Weak Abbott is not strong enough to rise beyond his minders.

  5. Ellen of Tasmania

    What has struck me almost daily when in Canada and the United States was how strong the Australian dollar is compared with the local currencies.

    The US is inflating their money supply like there is no tomorrow. If our currency is not rising against the US$ then it is losing value.

    http://www.youtube.com/watch?v=IK9ht8p0sNs&list=UUIjuLiLHdFxYtFmWlbTGQRQ&index=12

    (It’s Peter Schiff and goes for 13-14 minutes)

  6. Alfonso

    Indeed the AUD and Sydney property might be facing a correction if China ever enforces its capital export rules.

    An elite activity so unlikely.

  7. Bruce of Newcastle

    I think the $A is heading for a fall, and so does Glenn Stevens

    The datum which disproves this hypothesis is the NZ dollar, which today is A$1.06 down from $1.30 last year. A huge rise. The reason why is they have good policies, a productive economy and a suit of export products that the world wants.

    We more or less have the same (relative to the US and EU). We also are bigger, so the attraction for Chinese mainlanders wanting to invest in stuff is bigger.

    So fundamentals will increase the Oz dollar against the greenback. And you will have seen that whenever Glen talks the A$ down it falls sharply, due to trader activity…then over the next few weeks it rises back to where it was, or higher.

    The only thing which will drop us down to 70c or so is a panic in the US or the EU, since then the sheep stampede to either the USD, the euro or the yen depending on where the panic is. Bonds go nuts and stock markets crash. And after that the Oz dollar will rise right back up again because the fundamentals are still there.

    In the world of the blind the one-eyed man is King. Its not that we are rising its the US, EU and Japan who are sinking.

  8. entropy

    Quite so, Bruce, although I would say in the current environment the one eyed man with a gamey leg and a speech impediment is king.

  9. Andrew

    DD halves the quota and just allows more scum in. This site will promote a DD because it is the best hope for LDPs but the only possible result is a regressive Sen8 entrenched for years.

  10. John Comnenus

    Who can trust the Libs after lying about not increasing taxes and their non existent push to reign in spending? Abbott blew all the LNP political capital in his first budget. He will only get two more and he has deferred all the real ‘pain’ til the third budget. IN FUCKING SANE.

    But worse than that he did nothing for his base – pensioners and retirees. In fact he went out of his way to punish and scare them.

    He could have achieved a better outcome by simply cutting a few green programs, axing foreign aid, delaying the PPL and ensuring that all future spending growth was lower than CPI. That would have glided the economy back towards balance, not destroyed business confidence with new taxes and would have kept the populace basically happy – except for some Greens who will never vote Lib anyway.

    Now the LNP has no political capital left, is mistrusted because they are liars and have forced their base into the hands of the even more economically irresponsible ALP. I have never seen a more incompetent display of politics in my life. There is no chance that the LNP can go for a DD. If they did they would be massacred.

  11. struth

    If we did go to a D D, I think the time has come to do away with compulsory voting.
    I believe it could be achievable, or at least worth a try.
    I believe it was bought in without the consent of the Australian people through a referendum, and although it most likely would not pass the senate , it should be worth a try, as unfortunately the politically uninterested voter is killing this country.
    Our media is set up to influence them just enough.
    The average voter’s political ponderings are as taught to them by the “Project”.
    Those politically ignorant voters have been forced to vote by the left. It plays right in to their hands.
    The Australian that doesn’t know much about politics is usually bright enough to admit it and practical enough to realise they could be doing other things come voting day.
    Although it may be pointless, this particular comment, as it’s bill would be voted down, I do believe a change of tactics is now needed by this government.
    I also don’t believe the polls.
    I believe people are rightly angry with this government, but it is because they were elected to be a traditionally liberal government and are just labor lite.
    They don’t want labor back.
    That’s complete bullshit.
    Do away with compulsory voting and at the moment, with the choices we have, I don’t think you’d see a line up at any polling booth on election day.
    That should at least keep the cost of the thing down a bit.
    As the old saying goes…………voting only encourages the bastards.

  12. Petros

    John Comnenus nailed it. Exactly what I was going to say. Abbott fluffed it with a stupid budget. Now people don’t trust him. He would struggle to get a better senate outcome with a DD.

  13. cynical1

    Was it Mencken?

    “Give the people what they want. Good and hard”.

    There are always innocent casualties, however, batten
    down the hatches and watch evolution at work.

    DD+ Shorten for PM.

  14. Andrew

    I believe people are rightly angry with this government, but it is because they were elected to be a traditionally liberal government and are just labor lite.

    That’s rubbish – the people are brain-dead Regressives, nothing but sheep baa-ing whatever Soros and al-Gore tell them to. The ALP has no skill but polling – they would not be singing about OSB and carbon deniers unless Sir Scott’s methods were unpopular and the public wanted “climate action.”

  15. Stephan

    John Comnenus nailed it. Exactly what I was going to say. Abbott fluffed it with a stupid budget. Now people don’t trust him. He would struggle to get a better senate outcome with a DD.

    Yep, I’m glad some people get it here. It’s just a long, embarrassing, gaffe-ridden road down into electoral oblivion and historical irrelevance from here. Future LNP PMs shall not speak the name of Abbott, except during cautionary ‘we’ve learnt, we’ve listened’ tales ala Workchoices. I mean, we’re 9 months into his only term and it’s abundantly clear his best talent is as parody fuel.

  16. Tel

    …when the US Federal Reserve starts to lift interest rates…

    And then how will the US government cover those interest payments? Ain’t. Gonna. Happen.

  17. Big_Nambas

    A DD election? I am sure that Abbott and Co. are aware that “you will never go broke underestimating the intelligence of the average Australian voter”. The hate for Abbott and the perceived “lies” would result in a Green/labor landslide. Abbott will tough it out and do his best to make a difference before the next election, an improved economy is their only chance of survival. Don’t forget people get the Government they deserve!

  18. H B Bear

    And then how will the US government cover those interest payments? Ain’t. Gonna. Happen.

    Exactly. US Feds don’t even know what that lever is since “Inflate ‘em” Al Greenspan started blowing bubbles and kicking the can down the road.

  19. Tel

    In the world of the blind the one-eyed man is King. Its not that we are rising its the US, EU and Japan who are sinking.

    The Japanese economy has strong fundamentals IMHO. They are well organized, hard working, very high technology, don’t have militant unions, and mostly law abiding (give or take a bit of corruption, which happens everywhere).

    Their real problem is John Maynard Abe and his policy of destroying wealth and punishing savers. Strangely a lot of them have a misplaced trust in the man, which is sad I guess.

  20. Elizabeth (Lizzie) B.

    He could have achieved a better outcome by simply cutting a few green programs, axing foreign aid, delaying the PPL and ensuring that all future spending growth was lower than CPI. That would have glided the economy back towards balance, not destroyed business confidence with new taxes and would have kept the populace basically happy – except for some Greens who will never vote Lib anyway.

    Yes, +1 John Commenos.

    Which doesn’t mean, Stephan, that I buy the rest of your bulldust, and I doubt that John Commenos, whose comment your admire, does either.
    Labor’s hysterical climate religion and majorly stupid thought bubbles masquerading as unfunded ‘ideas’ and ‘policies’, coupled with insane debt and borrowing, which you fully endorse, should see you given a major ‘fail’ and drummed out of here.

  21. H B Bear

    This Stephan idiot has to be Stephan from Brisbane doesn’t it?

    Clearly Snic lives in Shitfer’s head. The echos around Dogshit Today drive him back every time.

  22. Stephan

    Which doesn’t mean, Stephan, that I buy the rest of your bulldust, and I doubt that John Commenos, whose comment your admire, does either.
    Labor’s hysterical climate religion and majorly stupid thought bubbles masquerading as unfunded ‘ideas’ and ‘policies’, coupled with insane debt and borrowing, which you fully endorse, should see you given a major ‘fail’ and drummed out of here.

    Come on now, where did I endorse Labor’s borrowing? I do agree with their spending initiatives I must admit, but Rudd and his advisors were cowards for ignoring the Henry review (but for the aborted MRRT). Having said that, our debt is not yet a huge concern if its growth is arrested in the next 5-10 years. In fact I’ve heard it said by some economics wonk that a debt/GDP ratio of 10%-30% may be healthier for the bond market and economy at large than 0%.

  23. Stephan

    This Stephan idiot has to be Stephan from Brisbane doesn’t it?

    Clearly Snic lives in Shitfer’s head. The echos around Dogshit Today drive him back every time.

    What does that mean? I think you have the wrong guy.

  24. John

    Japan has a huge demographical problem. They are getting old, they don’t to have kids and they don’t have any immigration programme to make up for that loss of interest in life.

  25. rickw

    Japan has a huge demographical problem. They are getting old, they don’t to have kids and they don’t have any immigration programme to make up for that loss of interest in life.

    Wrong, Japan faces some serious problems from an aging population, however, that can be cured today with changes in government policy, the results coming through in 20-25 years. They already cure the immediate issue with technology and the ensuing increased productivity to make up for the shrinking workforce.

    “Fixing” this problem with immigration can easily give you a 5th column that will impact your country for eternity, if it even manages to survive in any recogniseable form.

  26. John

    our debt is not yet a huge concern if its growth is arrested in the next 5-10 years

    That is true if you make an assumption that the world economy improves in this time or at least everything stays the same, which is highly unlikely. I think in 10 years the world is going to be a very different place to what we have today.

  27. Roger

    He could have achieved a better outcome by simply cutting a few green programs, axing foreign aid, delaying the PPL and ensuring that all future spending growth was lower than CPI.

    Not too hard is it? Abbott has been a great disappointment on the economic front – but then he did warn us, didn’t he? Not to mention Hockey, who should be replaced by the more economically rational Cormann, who could be a different creature if let out from Hockey’s shadow.

    The average voter’s political ponderings are as taught to them by the “Project”.

    Yes, this highlights the nub of the problem already warned about by de Tocqueville in the 19th C. – democracies with universal franchise will eventually become beholden to the lowest common denominator of voter. Personally, I would favour a “no representation without taxation” approach to the franchise, but as that is politically impossible in the present climate the abolition of compulsory voting would go some way to ensuring that only those with skin in the game actually vote.

  28. Roger

    “Fixing” this problem with immigration can easily give you a 5th column that will impact your country for eternity, if it even manages to survive in any recogniseable form.

    Yes, Japan would be a very difficult society for immigrants to assimilate to because of the peculiarities of its culture. In recent years they’ve experimented with bringing back the descendants of Japanese who migrated to South America in the early 20th C. but it hasn’t turned out well for them mostly because they couldn’t adapt to the Japanese work ethic.

  29. A H

    I highly doubt there would be a DD.

    Unless there is an opportunity to significantly increase their numbers, the coalition would not risk it.

    As for the dollar, the fundamentals are not strong. The fundamentals of the USD, EUR and JPY are weak, ie their Governments are even more entrenched in Keynesianism than we are.

    All this printing won’t last forever, it will turn around and the AUD will fall.

  30. Joe

    Democracy has run it’s course and seen to be wanting as was warned.
    Sortition is the only viable alternative.

  31. rickw

    “Yes, Japan would be a very difficult society for immigrants to assimilate to because of the peculiarities of its culture. In recent years they’ve experimented with bringing back the descendants of Japanese who migrated to South America in the early 20th C. but it hasn’t turned out well for them mostly because they couldn’t adapt to the Japanese work ethic.

    Roger, not just an issue for Japan, but also Australia, Japan can fix it’s aging population, however, will Australia be able to “fix” immigration of the dregs of Islamic society that has been going on since the 1970′s?

  32. rickw

    I would favour a “no representation without taxation”

    I would take it further, no representation without NET Taxation. That would render 75% of Australia’s voters ineligible!

  33. .Dr.Sir Fred Lenin

    Would I be right in sayingthat Australias popularity as a place to invest,is because we pay interest on investment ,and the USA and Europe pay no interest.Stands to reason you would put your money where it grows thru interest,rather than a place where it diminishesthru inflation? Just interested as I am no Economist.

  34. will

    Japan has a huge demographical problem. They are getting old, they don’t to have kids and they don’t have any immigration programme to make up for that loss of interest in life.

    Wrong, Japan faces some serious problems from an aging population, however, that can be cured today with changes in government policy, the results coming through in 20-25 years. They already cure the immediate issue with technology and the ensuing increased productivity to make up for the shrinking workforce.

    “Fixing” this problem with immigration can easily give you a 5th column that will impact your country for eternity, if it even manages to survive in any recogniseable form.

    Not if they import ethnically and culturally similar Koreans

  35. will

    Would I be right in sayingthat Australias popularity as a place to invest,is because we pay interest on investment ,and the USA and Europe pay no interest.Stands to reason you would put your money where it grows thru interest,rather than a place where it diminishesthru inflation? Just interested as I am no Economist.

    I suspect that the $A is much higher than otherwise due to R-G-R government issuing lots of debt with an attractive coupon rate that probably is higher than interest rates elsewhere in the developed world. Plus an economy that produces products in high demand (i.e. coal and iron ore), and a political culture that is reasonably stable and ensure repayments into the future.

  36. will

    In fact I’ve heard it said by some economics wonk that a debt/GDP ratio of 10%-30% may be healthier for the bond market and economy at large than 0%.

    Only so that finance market traders have a product to sell and make a commission on. Self interest is a horse that always wins.

    What about the rest of us? How does 30% debt help? It is an opportunity cost on government, and where is has been wasted on non-productive entitlement programs that do absolutely nothing to increase future GDP, it is just a deadweight cost to future generations.

    It actually destroys wealth and future prosperity.

  37. stackja

    a fool’s paradise

    inhabited by voters who elect PUP. Voters need to elect a government from a historically based major party which Australia has had since Federation in a two-party system. Electing others does not help Australia in the long term. Splitting government into small parties did not work in Europe or USA.

  38. will

    an improved economy is their only chance of survival. Don’t forget people get the Government they deserve!

    an improving economy is what Howard delivered, with wealth and prosperity shared, yet he had problems hanging onto office, and eventually fell to Rudd.

  39. stackja

    will
    #1378382, posted on July 12, 2014 at 2:16 pm

    Rudd, a fool’s paradise.

  40. John

    Yes, Japan would be a very difficult society for immigrants to assimilate to because of the peculiarities of its culture.

    That’s right. Even if they would want to fix their problem they wouldn’t be able to due to their culture.
    And I don’t think that replacing humans with machines is going to do it for them. To some degree – yes, but eventually they will run out of humans.
    This brings us to Mark Steyn’s point that culture is a primary vehicle for a civilisation – not the economy, or political structures, nor the abundance of natural resources.

    The English-speaking West is much more resilient in regards to absorbing immigrants, or at least it was until the Left denigrated West’s Judeo-Christian foundation to the point of no return. Even here at Cat some enthusiastic atheists fail to recognise that by siding with the Left in opposing Christianity they just help to dig us into a hole deeper and quicker. You are cheering the disappearance of the basis for our common understanding of how we should function as a society and as individuals in this society.

  41. Big_Nambas

    I never understood the termination of the Howard Gov. But was reminded at the time of Roger Miller “I treated you too good, too bad, dang me should take a rope and hang me”. I am willing to bet that a lot of voters who voted labor/green and ousted Howard would change their vote given the chance!

  42. Alfonso

    “Mark Steyn’s point that culture is a primary vehicle for a civilisation – not the economy, or political structures, nor the abundance of natural resources.”

    Of course, it’ll take you a century to convince the average Libert culture even matters.

  43. Farmer Gez

    A lower dollar will help exports but it is the internal cost structure of our economy that is killing business. Input costs for a Victorian grain farm have risen 100% in the last ten years. In that time the high dollar has helped costs as most of the inputs are imported, so the increase is decidedly caused by local factors. I’m afraid a lower dollar is no quick fix this time.

  44. stackja

    Farmer Gez
    #1378420, posted on July 12, 2014 at 3:07 pm

    Liberty Quotes
    No one has ever succeeded in the effort to demonstrate that unionism could improve the conditions and raise the standard of living of all those eager to earn wages.
    — Ludwig von Mises

  45. .Dr.Sir Fred Lenin

    A 30 per cent debtover income ,would prevent saving by paying interest with part of ones income.When you finally stop working ,no pay coming in,super gone to pay off the debt,What then? This is a fact of life for us,why not these mad spending Bozos in politics? Mind you they and the public employees are not worried ,indexed pensions etc. Time for some of Grannies Economics ,if you cant afford it ,wait till you can,sound ecenomics.

  46. Tel

    Not if they import ethnically and culturally similar Koreans

    They imported K-Pop first, as a test for compatibility. ;-)

    I get your point, but Japan has a high density population, ignore all those economic GDP statistics for a moment an think in physical terms. Are they really sort of people? I don’t think so.

    They are just quite good at finding jobs for the people (and the robots) that they have… which is the sort of problem that you have when you don’t have many problems.

  47. Tel

    Of course, it’ll take you a century to convince the average Libert culture even matters.

    What rot! Liberty is the first step, and culture is built on top of that. If you cannot choose a culture because someone has chosen it for you and imposed that onto you, and forced you to at least pretend you believe in it, then it isn’t your culture, it will forever be someone else’s culture and a symbol of oppression.

  48. Tel

    I would take it further, no representation without NET Taxation.

    Very sensible but difficult to measure when you have to put a tax-equivalent on school usage, hospital usage, etc. The problem is that the tax-n-spend brigade have deliberately found ways to make it difficult to trace back who gets pork in our system.

  49. jupes

    I have never seen a more incompetent display of politics in my life.

    Ease up John. We’re all disappointed with this government but surely you haven’t forgotten the last six years.

  50. jupes

    Liberty is the first step, and culture is built on top of that.

    You’re missing the point Tel.

    Alfonso is talking about immigration. If a libertarian society doesn’t screen immigrants for cultural compatability there is a fair chance that the society won’t remain libertarian.

  51. John Comnenus

    Jupes,
    The last six years were a policy disaster, but the incompetence of Abbott politically is worse.

  52. If a libertarian society doesn’t screen immigrants for cultural compatability there is a fair chance that the society won’t remain libertarian.

    The only way it could exist is with the right to refuse entry, and the right to impose exile.

  53. John

    Liberty can only be understood properly in a framework provided by your culture. That’s why we saw Muslims holding signs “Freedom go to hell”. Their culture doesn’t put any weight on liberty. Some of these people were born in countries that used to value liberty and still do to some degree, but they do not see the value in liberty. Even though nowadays no one is trying to force the Western culture on them.
    Even people from Orthodox Christian culture don’t understand it as you do.

  54. stackja

    John Comnenus
    #1378465, posted on July 12, 2014 at 4:24 pm

    TA believed PUP lies. Many others do too.

  55. jupes

    The last six years were a policy disaster, but the incompetence of Abbott politically is worse.

    No. Well yes, the last six years definitely were a policy disaster however the policy disasters were also implemented more incompetently than anything this government has done. By a long shot.

    Where do you start? How about Labor’s border protection policy? The Timor solution? The Malaysion solution? The ‘Expert Panel’? What about their ‘budget surplus’ promised every year? FFS they couldn’t even even appoint Bob Carr as Foreign Minister without beclowning themselves. How about the Mining Tax? The live cattle export to Indonesia?

  56. Alfonso

    ‘You’re missing the point Tel.’

    Well picked.

  57. Tel

    You’re missing the point Tel.

    There are some basic points that people have to understand in order to be a follower of liberty. I respect your rights to be an individual and do your own thing, exactly to the same extent that you respect my rights to do the same.

    I support that the government should defend our borders, most libertarians do. I also support that by necessity we need be selective about who we import, but let’s sit down and be honest for a moment… plenty of Christians have already violated the truce, and imposed their lifestyle opinions onto other people against their will. Muslims of course do it as well (especially once they have a majority) and you don’t need to go far to find a militant Atheist willing to ram his / her beliefs down someone else’s throat. Don’t start playing the “holier than thou” game with me, that’s the same game that got us into the shit to begin with.

    Of course, I don’t blame all Christians for being pushy bastards, some are really decent. For that matter some Muslims are very happy to keep to themselves and not stir up trouble. It’s the small percentage that don’t get it, those are the ones to screen out. Not by religion, but by attitude. FWIW, socialist do gooders who want to tell you how to live your life are just as bad, but stopping the boats won’t solve that.

  58. Tel

    TA believed PUP lies. Many others do too.

    TA had his chance to play it the honest way, he chose otherwise.

  59. IMHO the essential case re DD – the Govt is a lame duck unable to pass a budget and other legislation that it was elected on. the nation can not face years at mercy of the Senate and associated dills. So Govt must go the DD – will lose some l0wer house seats – so what – will still be able to pass all the trigger bills at the joint sitting then govern for another 3 years. If voters put GreenLabor back in a historic landslide – so be it.

  60. jupes

    I respect your rights to be an individual and do your own thing, exactly to the same extent that you respect my rights to do the same.

    Islam does not agree with this at all.

    … plenty of Christians have already violated the truce …

    There is no moral equivalence between modern Christianity and Islam. Not even close.

    Don’t start playing the “holier than thou” game with me, that’s the same game that got us into the shit to begin with.

    What are you talking about? Islam is a totalitarian ideology no less evil than communism or nazism.

    For that matter some Muslims are very happy to keep to themselves and not stir up trouble.

    Of course. They are far more likely to achieve their aims by simply asking craven Western governments than they are by terrorism. Nevertheless there is no doubt that the threat of violence has worked its arse off for Islam in the West. Be in no doubt though, that when push comes to shove, whose side ‘moderate’ Muslims will be on.

    It’s the small percentage that don’t get it, those are the ones to screen out. Not by religion, but by attitude.

    How do you tell the difference?

    FWIW, socialist do gooders who want to tell you how to live your life are just as bad, but stopping the boats won’t solve that.

    Stopping the boats won’t stop Islamic immigration. Only a discrimitory immigration policy will do that.

  61. stackja

    Tel
    #1378501, posted on July 12, 2014 at 5:13 pm

    Honest way?

  62. A H

    DD doesn’t mean coalition senate majority. It means full senate election with senate quotas being 7.7% of the per state population, rather than the normal 14.3% that it normally is.

    A DD means MORE fringe parties in the senate.

  63. Tel

    Honest way?

    Oh you know, election campaign on bringing government spending under control, and then deliver a budget that brings government spending under control. Little stuff like that. Use your imagination.

  64. Alfonso

    Dunno …
    I’m waxing and waning with the theoretical adolescent Liberts….ie. that’s all of them….
    I’m in the Pol Pot mode, most of these poseurs need to get their hands dirty and relate directly to the consequences of the risible undergraduate purity they exhibit. All too reminiscent of the young Julia in another genre.

  65. wreckage

    Except that if you apply say, a 15% dose of pure Libert to an economy you’ll get excellent results, whereas a 15% dose of Marxism is disastrous.

    Face it, you could take the entire Australian polity from law through to trade 20% in the direction of Purist Libertarian and still have a very conservative , pragmatic set-up. If we went 20% more in the direction of Pure Marxist we’d be collectivizing agriculture and building fucking Gulags.

  66. Alfonso

    Sorry Sir Fred…shoulda got to you sooner.
    This is near beyond belief for a young bloke like you .
    The Japan post office savings bank pays the Saito’s zero plus a tiny %. The Saito’s are grateful and so conservative they will not go beyond their traditional exploiters.
    The yen carry trade borrows the Saito’s yen at zero plus plus and gets 4% pa on overnight bank bills et al in Australia. They have a 24 hour exchange rate risk….the mark up is London to a brick.

    Money for nothing and your chicks for free.

  67. Ripper

    US Federal Reserve starts to lift interest rates

    They have to stop printing before lifting rates.

  68. Drama

    The high $Aus dollar is as a result of the articially rather than competitively increased wages and other costs under the Rudd-Gillard-Rudd Government. The high wages create the impression of affluence that is not at all based on productivity. Buying power and flush consumers like this enabled and in fact require the RBA to keep the interest rates high conparitively to other similar economies, to control inflation and overheating the of economy. Of course then strengthening the $Aus even more. Viscious – and artificially induced cycle.

    It served only to firstly send big business down – manufacturing is buggered – and is now starting to impact adversely on Medium and Small business, who while nimble and generally more responsive can only absorb the cost shocks for so long. They’re the true employment and private wealth generating powerhouse of the economy. Send all those Small business men and women broke and into the Job market and we’re in huge trouble. They are already the invisible unemployed, living below the minimum wage in the hope of a turn- around. It will not and cannot last!

    The Budget is an attempt to right some of these economic anomolies and – if implemented – would allow some productive competiveness to return to the economy and finally expose some of the underlying weakness in the economy. The only other way is true IR reform as you can’t get tax out of people who are making no taxable income or purchasing goods and services. IR reform is the kiss of death – so a competitve wage market is the only option

    Hey presto, the corrections we need, in every sense of the word.

  69. Tel

    There is no moral equivalence between modern Christianity and Islam. Not even close.

    That’s not how it goes with a truce, you either abide by it or you don’t. Same with a promise, you fulfill what you promised or you don’t do. Now you have to cling to fine “moral equivalence” scales. Instead of the “Non Aggression Principle” you have decided to advocate the “Not Too Much Aggression Principle”.

    Do you see where the problem is though? I mean Tony Abbott probably is (all things considered) better for the country than either Julia Gillard or Kevin Rudd, but none of the above can be trusted. At no stage can I feel confident that I get what I’m voting for, because (in the words of the most honest man to ever sit in Australian Parliament) “once we get in we’ll just change it all”.

  70. Tel

    Nevertheless there is no doubt that the threat of violence has worked its arse off for Islam in the West.

    I cannot entirely ignore the threat of violence that the West imposed on Islam either.

    I mean, more than just a threat of violence, we sent bombs, troops, drones, hellfire missiles, Blackwater mercs, what have you. In retrospect it wasn’t a smart thing to do, but we did it anyway. So where are we now? Either back to the “Not Too Much Aggression Principle” if we can agree on some sort of a half-truce, or else fight to the death for something I don’t much believe in anyhow.

    Give me a good reason to stand as your ally here, and please don’t start with the butt-hurt victimology.

  71. JohnA

    struth #1378029, posted on July 12, 2014 at 8:13 am

    I believe it was bought in without the consent of the Australian people through a referendum

    Did you proofread before posting?

  72. jupes

    I cannot entirely ignore the threat of violence that the West imposed on Islam either.

    Again, the moral equivalence. Get some perspective.

    The reason for attacking Afghanistan and Iraq was to defend the West. The reason for the attack on the US was for ideological reasons.

    The West didn’t attack Islam but Islam attacked us. And it continues to attack us.

  73. Tel

    If our invasion of Iraq was defensive, then what specific threat were we defending against?

    How did the invasion improve our security afterwards?

  74. jupes

    If our invasion of Iraq was defensive, then what specific threat were we defending against?

    An attack on the West by nuclear, chemical or biological weapons.

    How did the invasion improve our security afterwards?

    By ensuring that we haven’t been attacked by the above weapons. It also gave the Iraqis the opportunity to establish a peaceful, just society. An opportunity they have squandered.

  75. I see on the Bolt Report today the DD issue was blurred by Costa raising the halving of the quota.
    Bolt could have driven home that the main practical point of the DD is that it lets you pass all your rejected bills at the joint sitting – then govern for 3 more years. Maybe there are long term trends in Senate voting which will make Govts turn to the DD option more often.

  76. Aussiepundit

    Abbott not only broke a string of promises, he did so recklessly and without being pressured to do so.
    The most egregious is the ABC. And I say this as someone who would like to see major, major reform in this area, and I was extremely disappointed when Abbott made a pre-election commitment not to cut the budget to the ABC. When he said it, I wished he hadn’t. But he did.

    Having made the promise, he cut the budget of the ABC by less than 1 percent. So he broke a promise stupidly and didn’t even get to save any money out of it. Reduced his credibility to rubble with no payoff.

    Another one was the pension. Again – I’m all for pension reform. But the dickhead promised not to change the pension. (Note to pedants: he didn’t promise “not to change the pension in this budget” or anything like that…. just “no change to the pension” period).

    There are others. He raised taxes, decided not to repeal 18c.

    Electoral promises trump all other policy considerations. This is something Abbott will learn, too late.

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