Federal Coalition Government 2013-?

[redstragic]

The RB needed its reserves replenished and Hockey has taken the opportunity to do it while the public still blames the fiscal situation on the previous government. Politically clever and economically sound. Australia's break neck pace back too surplus was actually only ever an emergency to a Labor government. It was the only way to win over public perception of their economic credentials.

In the mean time the LNP government is watching a strengthening world economy coupled with increased investor confidence and probably aren't too worried about the future. If they continue to cut red tape and encourage foreign investment while selling off government assets we will be back to surplus before you know it.

Like it or not, that's how it will most likely play out.

A strengthening world economy based on QE and a Chinese credit boom. Nothing in the future to worry about.

http://www.cnbc.com/id/101181553

My take on the RBA thing was that even the RBA came out saying they were profitable enough and didn't need the cash. It all gets interesting though if the Government is worried about 2014 and are looking to shore up the RBA. Maybe if there was a lot of QE going on coupled with credit bubbles.


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[Bowside]

How do you know that?

He's widely read, and not a slave to ideology (ie. Greenspan).

 

[Braveheart81]

The 8b to the RBA is for a fund for emergency purposes that they may not even be used, so it at the moment is only and accounting item.

No it isn't. These are borrowed funds through the further issuance of government bonds which the federal government will pay interest on.

The RB needed its reserves replenished and Hockey has taken the opportunity to do it while the public still blames the fiscal situation on the previous government. Politically clever and economically sound. Australia's break neck pace back too surplus was actually only ever an emergency to a Labor government. It was the only way to win over public perception of their economic credentials.

The RBA didn't need it's reserved replenished externally. They instead suggested that they cease paying an annual dividend to the government to increase the rate at which their reserves increased.

Hockey has borrowed $8b to give to the RBA because he is hoping that the AUD falls and the RBA makes a substantial forex gain. It will probably work because the AUD should fall over the next year, but he is basically taking a gamble with $8b dollars.

 

[Inside Shoulder]

He's widely read

if only it were that simple.

 

[Ruggo]

I hate the boat people debate and the political football it has become. I now notice PM Abbott has accused Indonesia of breaching International Law. This is the same Tony Abbott that spun the line about wanting less Geneva and more Jakarta. How can you take this idiot and the government he leads seriously.

The foreign minister is asked a question about the issue and says that you will have to ask the immigration minister. Fair enough but if you asked the immigration minister during his ridiculous weekly press conferences and all he will say is that he doesn't make comment about operational matters. Just a stock standard answer for a bloke shielding himself from scrutiny and accountability. I notice he broke his own protocol today in order to defend himself.

Say what you want about Labor but every time a boat was intercepted, it was disclosed to the Australian public, despite it causing them political pain. At least they were transparent unlike what we are seeing out of the current government.

 

[Braveheart81]

Abbott and Morrison are absolutely destroying Australia's diplomatic relationship with Indonesia.

The public rhetoric prior to the election and some of the comments they've made since are unbelievable. It's like they don't believe that comments they make to the Australian media won't be heard by Indonesia.

Indonesia has put their foot down and are unwilling to kowtow to our demands. If the Australian government keep pushing the issue it will just get worse.

They will never get Indonesia to bow to their will because the issue of boat people and people smugglers is just not a massive issue in Indonesia like it has become in Australia.

 

[Ruggo]

Why would a young and developing democracy with the fifth largest population on the planet give a shit about the high and mighty whinging and bitching of a rather self centered, wealthy and sparsely populated country like Australia?

In the traditions of previous coalition governments we are set to continue as a far isolated nation of colonials. I used to laugh at the previous Labor government talking of the Asian century. FFS it was in the last century Hawke and Keating set the framework for us to be a genuine player in the Asian region. The white paper told us what we already knew.

 

[fatprop]

We have a country above us with no emergency services, we go save some people in their territorial waters and they say you can keep them?

Maybe we should just let them die next time.............

I am surprised they even allowed us to enter their waters

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[Braveheart81]

We have a country above us with no emergency services, we go save some people in their territorial waters and they say you can keep them?

Maybe we should just let them die next time.....

I am surprised they even allowed us to enter their waters

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This latest boat that caused all the dramas wasn't in Indonesian waters. It was just in their search and rescue zone.

An Australian vessel intercepted it and Indonesia wasn't interested because the boat wasn't in distress.

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[The Red Baron]

Why would a young and developing democracy with the fifth largest population on the planet give a shit about the high and mighty whinging and bitching of a rather self centered, wealthy and sparsely populated country like Australia?

In the traditions of previous coalition governments we are set to continue as a far isolated nation of colonials. I used to laugh at the previous Labor government talking of the Asian century. FFS it was in the last century Hawke and Keating set the framework for us to be a genuine player in the Asian region. The white paper told us what we already knew.

Pretty much spot on.

I have spent some time studying Indonesian social, cultural and political issues. What I have found is that since they proclaimed independence in 1945, it has all boiled down to one thing - Indonesia does what Indonesia wants. Tony and his cronies are not going to change that in the slightest.

It is much better if we attempt to integrate into the region, rather than the other way around.

 

[Ruggo]

Pretty much spot on.

I have spent some time studying Indonesian social, cultural and political issues. What I have found is that since they proclaimed independence in 1945, it has all boiled down to one thing - Indonesia does what Indonesia wants. Tony and his cronies are not going to change that in the slightest.

It is much better if we attempt to integrate into the region, rather than the other way around.

I remember in high school, Bahasa Indonesian was the second language of choice that we all studied. That was towards the end of the Keating era. I don't know if that was a Northern Australian thing given our proximity to Indonesia or nation wide.

I used to work on Darwin Harbour in the quarantine zone where detained foreign fishing vessels are detained and given the taste of the third world I got there was a massive eye opener to just how out of touch we are.

 

[Slim 293]

NY Times journalist and photographer travelled the refugee journey from Afghanistan to Christmas Island via Indonesia.........

Incredible story:

http://www.nytimes.com/2013/11/17/m...fugee-boat-lift-to-christmas-island.html?_r=0

 

[Inside Shoulder]

NY Times journalist and photographer travelled the refugee journey from Afghanistan to Christmas Island via Indonesia...

Incredible story:

http://www.nytimes.com/2013/11/17/m...fugee-boat-lift-to-christmas-island.html?_r=0

Unbelievable that anyone would subject themselves to that but I am glad he did so i could get a glimpse of what its like.

 

[Scotty]

The LNP's need to come in and fire/not-rehire people is a political statement that makes them look like what people think good economic managers should look like.

But it's horrible for business confidence. And in a more general sense, contractionary fiscal policy like this should be done over time, and in times of general expansion in the rest of the economy.

If want to praise someone for the state of the economy, the man to talk about is Glenn Stevens. And thankfully he's a far smarter bloke than Hockey or Abbott.

Interesting comment. At least 50% of economists thought the RBA took too long to lower rates.

Peter Switzer said the other day that the person that worried him most last year in relation to having a negative effect on the economy was Glenn Stevens. (He believes the rates are set correctly at the moment.)

 

[Ruggo]

Of the economists with a bit of a public profile, I find Chris Richardson the one of most value.

 

[Runner]

I hate the boat people debate and the political football it has become. I now notice PM Abbott has accused Indonesia of breaching International Law. This is the same Tony Abbott that spun the line about wanting less Geneva and more Jakarta. How can you take this idiot and the government he leads seriously.

The foreign minister is asked a question about the issue and says that you will have to ask the immigration minister. Fair enough but if you asked the immigration minister during his ridiculous weekly press conferences and all he will say is that he doesn't make comment about operational matters. Just a stock standard answer for a bloke shielding himself from scrutiny and accountability. I notice he broke his own protocol today in order to defend himself.

Say what you want about Labor but every time a boat was intercepted, it was disclosed to the Australian public, despite it causing them political pain. At least they were transparent unlike what we are seeing out of the current government.

Just a thought that if it was the federal/state police being asked by journalists or the opposition about a major on going operation against a drug syndicate or bikie gang etc would there be the same outcry as there is against this operation? It could put the operation, people involved such as undercover police etc at risk. Why not consider that option?

 

[Ruggo]

No need to consider that option and I don't see merit in your analogy.

I see nothing pure in the course of action the government is taking.

 

[Scotty]

No need to consider that option and I don't see merit in your analogy.

I see nothing pure in the course of action the government is taking.

Ironically if Labor had taken the same tact it could have helped the issue immensely. The media would be less involved and it would become much less of an issue for average Australians.

The debate on Asylum seekers was much larger than it needed to be - mainly due to the media running so strongly with it.

 

[Ruggo]

How much of an issue is it for average Australians? Politicians have pandered to the lowest elements of society and the media has jumped on for the ride. I didn't agree with Labor's policy but still think they treated it as a safety of life at sea issue. This issue has always been a political beat up for the coalition going back to when John Howard unleashed the race genie by saying "We will decide who comes to this country". The most disgusting thing about it at the time was the flow of asylum seekers was coming out of Iraq. The same Iraq we helped blow the shit out of under false pretenses.

The coalition will never have credibility on this issue in my view.

 

[boyo]

Just a thought that if it was the federal/state police being asked by journalists or the opposition about a major on going operation against a drug syndicate or bikie gang etc would there be the same outcry as there is against this operation? It could put the operation, people involved such as undercover police etc at risk. Why not consider that option?

The difference is that this issue was made a political football.