Friday, February 26, 2016

MALCOLM TURNBULL LACKS BALLS

Ok, while the Coalition Government in Australia has scored some notable successes I am saddened to see that Malcolm Turnbull has walked away from any serious reform of their taxation system and, in doing so, has consigned the country to years of budget deficits with no pathway forward to repaying debt.  

He is emulating the excesses of the Bush and Obama administrations which have seen hundreds of trillions of dollars added to the National Debt which will never be repaid thus bequeathing a legacy of interest payments to future generations yet unborn.

In 2008 Labour's 'gift' to the incoming National coalition government was a budget out of control exacerbated by the GFC and the Canterbury earthquakes.   Key and English worked to put a place a pragmatic solution which avoided the 'slash and burn' favored by some.     They took considerable stick from those who parroted the need for restraint (as long as it didn't effect them or their pet projects) and instead held the line on government spending ... something that Labour could never do.   They are, by definition, a spending Party.

I can acknowledge the Coalition Government in Australia was hamstrung by an electoral system that has so called third and forth Parties along with several ratbag Independents holding the balance of power in the Senate and able to block budgets.   Abbott should have called their bluff and gone for a double dissolution.   In all probability the Coalition Government would have been returned and it is likely they would have won control of the Senate.

That chance has been and gone and, with the general election scheduled for later this year, all bets are off.   The Coalition will do nowt to rock the boat and continue to spend money it doesn't have ... the announcement yesterday of a $195b increase in defence spending over the next decade is a case at point.

I though Malcolm Turnbull could 'do' numbers.   Perhaps he can but the reality is that he hasn't the balls to address the structural changes needed in the economy to help make Australia the 'lucky country' once again.
 

8 comments:

Adolf Fiinkensein said...

Yep.

Spot on, Vet.

Gutless.

But he's the hero of the socialist Luvvies at th ABC.

Anonymous said...

You are right about the US - debt is a staggering 104% of GDP. In NZ it is about 25%, and the government has plans to reduce this to less than 20% by 2020. The USA, no matter who is next President, will have this millstone for generations and will come to regret the abysmal Obama experiment.

MarcW

Adolf Fiinkensein said...

MarcW

They already have.

Anonymous said...

Aw he's got 22 billion defense spending to consider.
We've only got a billion for the next year and for 10 years after that.

Noel said...

Appears the universal political excuse for no tax cuts is always debt preventing it occurring.

"Australian Debt will grow 32 per cent to 22.4 per cent of GDP in 2020 from 17 per cent at the end of 2014, the IMF estimates.

Read more: http://www.afr.com/news/policy/budget/australia-has-worlds-worst-debt-trajectory-imf-says-20150415-1mlmwj#ixzz41E7WA8CY

Anonymous said...

Countries without debt

Palau
Liechtenstein
Brunei
British Virgin Islands
Macao

Noel said...

US - debt is a staggering 104% of GDP.
Japans is 264% whilst Singapore is 97%. It's all relative.

The Veteran said...

Anon 5.20 ... Not sure you can classify Palau, BVI or Macau as countries. They are all in association with a 'mother' country (US/GB/China respectively) who retain responsibility for defense and foreign affairs and, in the case of Palau, provides access to US social security benefits.