Politicians come and go. Bureaucrats not so frequently. Political parties even less so. Archives never.
Devoid of any intellectual heft, the ALP has delved into the party archives and dusted off Gough Whitlam’s plans for Australia. Yeah sure they were an abject social and economic failure that still haunt us. But he never got to finish the implementation. Those evil Libs and Governor General stopped Gough turning Australia into an icon of South American despotic governance.
But the ALP has not only dusted off Whitlam’s plans, they seem to have also wheeled out a key link to not only Whitlam but also the key piece of “public policy architecture” that will doom us all. That link, the Hon. Paul J. Keating, who was briefly a Whitlam Government Minister. PJK never forgives and certainly never forgets.
You will note that PJK could only afford the nice Zegna double breasted suits after a Coalition Government made modest repairs. Had Whitlam been allowed to implement it all at the time, well then, not only would there not have been the nice suits, there would have unlikely have been the antique clocks.
Now granted TAFKAS is talking about events of the 1970s. Chances are also that the history departments of Australian schools and universities will have certainly cleared away or at least polished the turd that was the Whitlam Government. So perhaps all those praying daily to their statue of Gough review his thoughts on Asian immigration and the “Balts“. But notwithstanding.
But for those who have the memory and those who weren’t there but have chosen to learn about it, Whitlam decimated the economy including by increasing Commonwealth Government spending from around 15% of GDP to around 20% of GDP – a 33% increase. A rate of increase in government spending that Kevin Rudd, Julia Gillard and Wayne Swan could only dream about. Whitlam also tried to nationalise the Australian mining industry, kinda sorta what Swanny tried to do in a nice way with his mining tax.
And having sent the Commonwealth Treasury to the wall, unable to borrow from the normal places, these paragons of public finance went to a dodgy Pakistani “banker” named Tirath Khemlani to get some dosh.
But who needs Khemlani to lend you money when there is the giant glowing and throbbing pile of money sitting there called Superannuation. You know that pile of superannuation money that Paul Keating, in very nice tailored suit, constantly reminds us all was his baby. Yes. That fat and lazy baby that is the most inefficient in the world clipping whopping fees and feeding the financial industrial complex. Did TAFKAS mention that PJK was a director of Lazard Australia and is a director of:
MaxCap group, which specialises in commercial real estate debt, recently teamed up with the nation’s biggest industry super fund, Australian Super, to offer large $100 million-plus loans direct to developers.
(Yep. Australian Super. That was a team with $140 billion Australian Super.)
Ahh super. That big pot of money waiting for a broke government to raid. Or is that raid once more and for good.
So let’s get back on track. The current ALP has proposed a tax and spend plan that would put Whitlam to shame. A plan to which both Whitlam and Rudd would note:
Today, I am saying loud and clear that this sort of reckless spending must stop.
There is absolute certainty that they will spend what they promise. Less certain however is that that will be able to raise the taxes necessary to meet the spending. Even if their tax plans get unaltered through the senate, collectively pulling out all that money will significantly damage the economy. This will not only decimate tax revenue but will also jack up spending through unemployment benefits and other welfare; those automatic stabilizers you know.
And so when the Commonwealth is broke, the credit rating is gone, and there is nowhere left to go …. they will just take all the superannuation money and give back an IOU.
It won’t be the first time a broke state has confiscated private wealth and it won’t be the last.
American bank robber Willie Sutton was once asked why he robbed banks. His reply:
That’s Where the Money Is.
And superannuation – That’s Where the Money Is.
But superannuation in lots of self managed super accounts is really hard to confiscate. If its all in a couple of big and cooperative funds, you know like Industry Super, its much easier to grab.
Perhaps you think about that when you think that it is both the Liberals and Labor (but particularly Labor), and the bureaucrats that advise them, who are making it really unattractive to have a self managed super accounts. They want all the money in a couple of places to make it easier to grab.
So thanks Paul and thanks ScoMo.
It would have been more honest for the whole 9.5% to have gone to the government in the first place. But they would have spent it all anyway and tried to grab some other private assets.