ALP/LIB DEBT DEAL FAILS WITH TANKING GDP
Four-time Walkley Award winning political commentator and Churchill Fellow, has returned to the fray over concern that the integrity of news dissemination is continually being threatened by a partisan media.
Noticeably earlier this year the rowdy debate over debt and deficit suddenly fell silent. Shorten and Turnbull had made deal to avoid pointlessly tearing each other to pieces. Turnbull wanted the freedom to keep spending and Shorten did not want the blame for the existing, and now ballooning, debt. That deal is now in tatters as one more quarter of negative growth puts us officially in recession and almost certainly blasted below our AAA rating. Two more quarters of the same and it’s a depression with no way to finance health, education, the NBN, NDIS or welfare.
Morrison and turtle head Bowen had crafted a pathway of lies to solvency some time in the out years by agreeing to assume an outrageous five per cent per annum ongoing growth rate. Unfortunately anything under five per cent would ensure the financial blowout would increase exponentially.
In the next four quarters even China will be doing handstands if it can hold a genuine five per cent growth rate on the back of eight years of Obama and you can never believe China’s figures anyway.
China not only unfairly manipulates its exchange rate it also manipulates its Hang Seng Exchange indices to the point that Exchange movements are internationally ignored as a financial indicator.
At the time the ALP/LIB deal was done, our GDP appeared to be an improving three per cent but, as explained here previously, that encouraging GDP figure was on the back of Abbott’s 20 per cent business tax write-off, a once-only stimulus item that saw employment and investment rise markedly after Christmas.
And nary a word from either side about yet another Abbott success. Now it’s back to normal and we’re facing the same old fiscal brick wall, only now the wall is a lot higher.
There is hardly a Tallyho paper between Shorten and Turnbull over debt and deficit... neither gives a stuff about it because interest rates are near to zero and the Libs want to cut while the ALP wants to spend.
But those interest rates are starting to turn and that makes the brick wall higher again.
The Trump effect will be blunted by a Left media in the same way as was Abbott. It is determined to mark both down on everything from finance to Collingwood.
Turtle head signalled his "the death of the deal" this morning when he came out with all guns blazing blaming the Libs for the disastrous GDP figure. The debt and deficit blame game is on again for the first time in a long time.
And this time it’s time to tell the truth!