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Message from K Rudd

Discussion in 'The Economy' started by AsxBroker, 25th Jul, 2009.

  1. AsxBroker

    AsxBroker Well-Known Member

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    This is Kevin's Recipe for Recovery
    Kevin Rudd with my own commentary added...

    I feel passionate about this "infrastructure" as Sydney's northern beaches were promised a "new" hospital before the whole "shovel ready" word became trendy. Then residents of the northern beaches hospital got buried...Is this parliamentary privilege used to get votes?

    I think he forgot to write "technical recession", it obviously sounds better...You can't tell us that this is the worst time since the great depression but then we aren't in a recession...We aren't that naive are we?

    I love it, give the bad news and then when it isn't as bad as he says, "Hey look at how good I am, I avoided a (technical) recession, Vote for Me!!!"

    It's called Inflationary Target Kev, the Reserve Bank want's to keep inflation between 2% and 3%. Inflation is currently 1.5% which means it is below the inflationary target so the RBA wants inflation to rise slightly which at the moment means the economy needs to be stimulated. When inflation is towards the high end or above 3% the RBA will start to increase interest rates to reduce spending. Quite simple really. So don't be worried until this happens...

    Don't stop it yet Kev, you've still got plenty of spending to do. A new hospital in Frenchs Forest as promised would be nice or even major renovations of Mona Vale and Manly as they are older than Jim Scullin, Don Bradman and Joe Lyons.

    OK, so moving away from mining for enery would be a smart thing wouldn't it? Shouldn't there be incentives for businesses to generate power via solar? This would put Australia on the leaderboard for solar but alas these incentives do not exist like they do in the United States...

    Commentator??? Kevin, Bill Gross runs PIMCO the largest fund manager of Bond's in the WORLD...On the website PIMCO - Global it says "The Authority on Bonds" not "commentator"...

    And the government was going to say "NO we don't want our cut of taxes from this?"

    Yes, it's always easier to blame it on someone else...Have you spoken to Obama about fixing this issue?

    And the one person that should have stopped it was George W. Bush - Wikipedia, the free encyclopedia but he didn't...OMG it's another leader of a country...surprise surprise...

    That's a good thing right? The peak interest rates just before the crisis was significantly huge when your trying to pay a mortgage...I don't think too many borrowers want to see that again anytime soon...

    [Cough] Strangely enough, not guaranteeing the money in banks held through superannuation or retirement funds...Well, ok, you did but you charged for the privilege. This screwed over mortgage/income funds which are still sorting out the problems from government intervention and it may take many more years for this problem to be relieved.

    Australia is a HUGE country, there is plenty of desert in the middle to build solar farms.

    Thanks for reminding me of Seaforth TAFE, so Sydney's northern beaches residents get lied to twice. No hospital in Frenchs Forest and Seaforth TAFE remains empty for the last 10 years and probably many more decades...No I don't feel hard done by...

    Why does the government want to run an internet backbone? It sounds a be 1984ish to me, watching everyone's movements...

    Yes, ATO and ASIC are weak and substantial funds should be invested in these government departments to regulate, Kevin, I still believe that if the ATO/ASIC did a Super Switching investigation on Self Managed Super Funds with $340 bn in funds how many of these members were given a comparison between their existing superannuation and the benefits and losses of leaving their existing superannuation funds? I suspect not many...A fine of 1% would collect substantial funds to fill Australia's deficit. Congratulations K Rudd funding issues solved...

    Didn't I already say it's easier to blame someone else?

    It sounded so much better when it was "working families", it had that ring to it...

    So the money in our banks didn't need to be government guaranteed? I feel more under promising and over delivering coming on...

    I'm confused, are you telling me that the mining boom has already paid for the GFC? By more than 1.5 times over?

    I'd definitely be waiting until inflation is stronger, maybe somewhere between that Inflationary Target?

    Of course, we aren'tgoing to have a sudden return to the giddy heights of 2006, this was just before the top of the boom. We'll probably have to wait another 6 to 10 years to get back there...It's all cyclical.

    Absolutely, how are you going to educate children, teenagers, young adults and everyone else to save rather than consuming? It's the NOW generation who don't want to wait and save to get it which has caused this from the start. Just look at the sub-prime issue, people who couldn't really afford home loans were given home loans at honeymoon rates to get them in the door and then boom double their repayments which they are already struggling with...

    Let's fix our own backyard before we start telling other countries how to fix theirs...

    Yes and no, if the government didn't pay down the debt from the late 90s early 00s you wouldn't have had to borrow so much. The debate in the late 90s was, if the government paid down all of it's debt, how do you calculate other debts as the government debt interest rate was seen as the risk-fre rate. Other debts were calculated a risk on top of the risk free rate. Smart debt management Mr Rudd...

    If the governments stopped raising the tax brackets you'd have alot more money, unpopular statement yes, reality yes!!!

    I don't think mining workers would like that...

    I love it, remind the readers how good the Labor party is...Subtle

    Did you just ditch the supermarket comparison website which Choice was very ropeable about as they were looking forward to more competitive pricing in groceries...
    Why? There is already plenty of internet, why do you want to spend money on something that already exists?

    Didn't Ireland do something like this and it stuffed the country?

    Corporate tax reform?

    Hello Keatings 12%? Smart move Ruddy!!!

    This is definitely smoke and mirrors, you were complaining about the financial markets doing things to excess. Carbon credits is a great example of those financial markets finding something to trade, whether relevant or not...

    Working families sounds better...

    Bravo Mr Rudd...
     
  2. Billv

    Billv Getting there

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    Dan
    Thanks for the commentary
    you must have a lot of free time at work :)
     
  3. AsxBroker

    AsxBroker Well-Known Member

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    Lol, no it was Saturday morning.
    Though it did take a long time to write all the commentary.
     
  4. dmesh87

    dmesh87 Member

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    Pretty interesting stuff written there, makes Rudd sound quite far left wing and socialist with his rhetoric about the evils of the free market as well as strategically blaming the previous government for anything that has gone wrong.

    The first couple of parapgraphs are itneresting as he exaggerates the position we are in now comparing it with the great depression, which is definately excessive. The next paragraph he puts himself and his government as the heroes who ride in and save the day by giving people money and making plans for infrastructure spending, I say plans because often labour governments spend millions making plans that never come to fruition (havnet heard much about their broadband project in a while).

    I think this is much too simplistic as the foundation for Australia being one of the most well positioned countries in the world right now came from sound economic managment years before. Rudd uses many catch phrases that have become familar since the global recession began such as excessive greed and lack of financial regulation. If you take a look at the biggest australian banks though they are still making multibillion dollar profits, where as the American counterparts had billions worth of writeoffs and some failed all together. This couldnt be because of the regulatory environment created by the previous government where APRA for the most part has kept banks from becoming too leveraged and ensuring the compliance of all banks with the regulatory standards. Yet he fails to mention good managment in Australia, but is quick to point out poor regulatory management in America.

    I dont understand how you can blame a boom in the late 90's and early 00's and a lack of regulation for creating excessive greed and debt. Yet our financial institutions today are probably positioned the best in the world to weather the storm and Rudd himslef is the real culprite of debt getting us into 200 billion dollars worth without our say.

    Rudd also cites reasons such as consumers spending big and too much corporate debt, combining this with his evils of free market neo-liberal rant im assuming Rudd thinks he should tell people and private companies how they should spend and borrow their money because he seems to knows better then they do, Communist governments throughout history have had the arrogance to think they know better then their own citizens how to spend money and look where they ended up. He also concludes from the current global recession that the free market has somehow been proven wrong, when if he had ever looked at a an index stock chart over 100 years this has happened a dozen times and people have survived fine. The boom bust cycle is apart of the nature of the free market.

    He also gives himself a pat on the back for stimulus packages, but he never mentions where the money for these stimulus packages has come from. If not for the huge surplus of the previous government I would hate to think what the debt level in Australia would be, far more then 200 billion i'd guess.
    I would also love to know how Rudd is going to raise productive capacity when unions have huge sway in most of the major job sectors in our economy, god forbid a workers overtime pay be cut or delay a pay increase.

    Nice commentary AsxBroker, gives a good insight into how his mind works.
     
  5. AsxBroker

    AsxBroker Well-Known Member

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    ...are there really plans? Or is it just TV advertising spending millions telling us about these plans...

    Aren't federal elections next year? Kevin10??? Doesn't sound as good as Kevin07. Some poll said that 66% think Kevin is best for PM while 10% think Turnbull is best for PM.

    Cheers,

    Dan