Beyond The Fringe

Andrew McNamara, Minister for Sustainability, Climate Change and Innovation, gave an impressive, lucid speech to the Brisbane Institute on the need for sustainable planning within Australia.

McNamara quoted the wise words of Bob Carr in 1997:

“I think people are ready to grasp the argument that the unsustainable growth in population numbers is degrading our planet and that Australia must begin to think of itself as a country with a population problem. Let’s throw away for all time the notion that Australia is an empty space just waiting to be filled up. Our rivers, our soils, our vegetation won’t allow that to happen without an enormous cost to those who come after us.”

Showing he missed Carr’s central point, McNamara went on to say:

The key to achieving a sustainable Australian population in the 21st century is population distribution - adopting policies which encourage and support population growth in areas where it can be supported sustainably, and discouraging it in those places where it can’t.

We hope the Federal Government notes well the plight of our region, with plans by the old Maroochy Shire Council to increase its population by 63% by the year 2020, and acts to prevent such lunacy. Stopping the ill-conceived and environmentally devastating Traveston Dam would be a significant indication of the Government’s good intentions also. Population growth in the already environmentally stressed-to-the limit south east corner of Queensland must be discouraged.

An economic strategy based on reducing population generally across Australia and encouraging same must be prepared - ’smarter and smaller’ needs to become our catchcry. Increased education and parity of wages for women, removal of baby bonuses, encouraging older people back into the workforce, adequate funds for academic research untied to needs of existing industry in order to create new industries down the track, support for innovative brain-based, non-polluting industries, and more apprenticeships would all help.

The Federal Government might also examine the success of the Noosa strategic plan with its population cap and international recognition by UNESCO with a view to using it as a model for communities across Australia.

Is the nadir yet to come in our feverish bourse? The AllOrds has caught a severe case of pneumonia from the ailing US economy - yet we think a large part of this malaise may be due to perception rather than reality, apart from our banks who stupidly spread their assets into US home loan Ponzi schemes.

The demands on our minerals and other resources by China and India may keep us from too much pain as the Dow Jones slides into a coma, and perhaps our perceptions haven’t caught up yet with reality. Meanwhile the swarming sharks gobble our treasure at bargain basement prices. We hope Australians see the opportunities also, otherwise the farm will end up just about totally overseas owned at the rate it’s going.

Of interest, we see that alternative energy stocks are doing quite well despite the plunge - CXY and COZ may well do superbly with the inevitable recovery. Novera on the AIM market has just had a takeover offer for twice what we paid for it - this company reclaims methane from landfills in Europe. BPO has slid just 1 cent since our last purchase and the future looks rosy with proposed production of organic termicide Termilone to begin in 2010.

As we are counter-cyclical by nature, we reckon 2009 is the time to buy, buy, buy - wisely, with a view to the sort of world which may emerge after the current depression subsides.

Countless times during our long and profitable investment career, our political judgment has been invaluable in helping us make accurate market predictions, enabling us to pick trends well before they are common knowledge and every man and his dog is on the gravy train. A current example is the certainty we had that the ALP conference would lift the no new mines ban yet not back nuclear power stations. We lined up our U investments accordingly, choosing only shares with interests in South Australia, the Northern Territory and overseas. Our knowledge of the loosening of political control in China and subsequent market relaxation encouraged us to lash out with our investment in OCO, now paying off. Likewise with that goldie of goldies, LRL and the enticing LYC.

Without a political perspective refined and polished in debate with others, one flies in a fog.

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Latest figures on foreign investment in Whorestralia are worrisome.

In 2003/04, foreign investment totalled $1,059,345m - and 30.8% of Whorestralia’s total enterprise equity was owned by foreigners, with the United Stupids heading the list at 32% of total foreign ownership, followed closely by the United Kooks at 30%. By the end of the December 2006 quarter, foreign investment increased to $1,433,466m.

That’s an gigantic 35.3% increase in foreign investment in just 3 years. Why did the rodent add more sugar by removing CGT for foreign equities investors last December?

Nett Whorestralian foreign debt has risen from $390,565m in 03/04 to a disturbing $521,161m at the end of Dec 06. The vast majority of foreign debt is implicated in the private sector, with a disgraceful increase from $385,490m in 03/04 to $518,841m in Dec 06.

Whorestralia’s total liabilities at the end of 2006 were a staggering $900,258m.

So what use has the concurrent resource boom during the past 3 years been to Whorestralia? It is clear that much of the profits therefrom have been expropriated overseas, leaving the Whorestralian economy beholden.

Team Rodent has patently been very busy selling us out.

With the passing of the Ides of March, we have strong suspicions that the second market correction may be over - will there be a third? It is possible the subdued buying of resources - first copper, then zinc - by the Chinese in the past little while was deliberately orchestrated to engineer prices down to coincide with the beginning of the Year of the Gold Pig. Of relevance here may be the decision by the Whorestralian government last December to remove capital gains taxes for foreign investors and the more recent Chinese government decision not to impose capital gains tax on their investors. Metals prices rose strongly last night. Will the bull market resume or will the crazy crazy selloff of our precious resources continue unabated?

Who wouldn’t like to have been a cashed up Chinese investor this year, rolling in US dollars, eager to drop them into cheap physical resources as the United Stupids economy sags under the weight of precarious hedge and subprime mortage funds and a tenuous bond market?

And where better to invest than in relatively insulated CGT free rich Australian resources at bargain basement prices - particularly uranium (Citic has been buying up more SAU this week), gold and zinc.

Kiss goodbye to your birthright treasures, fellow Whorestralians - and don’t expect to reap any of the proceeds of the fire sale in additional community services in this election year - Howard’s mudslingers need every cent to artificially deflate the trade deficit, to buy more crappy US jet fighters and electioneering pork. And as for you pathetic, whinging Whorestralian mortgagees, get ready to wear another interest rate rise you have to have, trust me, it’s for your own good,.

Coalition apologists are oft want to lambast Labor for over-spending. Yet why the Coalition runs a surplus with our tax money is questionable, when it would be better off either spent on bettering services and infrastructure or returned to us.

Lindsay Tanner is demonstrating already that Labor is committed to reducing wasteful expenditures and trimming sleazy Howard pork. Of particular note are much needed funding slashes to the virulent, profligate government propaganda machine, tax deductability of cronies’ political donations and curtailment of organisational perks.

LINDSAY TANNER MP

SHADOW MINISTER FOR FINANCE

LABOR’S $3 BILLION SAVINGS PLAN

Federal Labor today announced a massive savings plan to cut out $3 billion of Howard Government waste.

These $3 billion in savings across the 4 years of the federal budget will put downward pressure on inflation and interest rates.

Labor’s savings plan includes:

· Saving $394 million by scrapping the Howard Government’s extreme work laws;

· Cutting $350 million worth of Howard Government political advertising; and

· A $395 million cut in the use of consultants in the Commonwealth public service.

A Rudd Labor Government will use its $3 billion savings plan to cut wasteful spending and increase investment in productivity drivers like education, skills and infrastructure.

Complacency and lack of discipline by the Howard Government has allowed unnecessary spending to flourish. Splurges of taxpayers dollars on political advertising and high cost consultants are proof of that fact.

If introduced today, Labor’s savings would save $3 billion over the Budget estimates period. Labor will continue to pursue savings options, and make further savings announcements prior to the election.

This sensible and disciplined savings plan will put downward pressure on inflation and interest rates. Labor’s savings include and build on the $1 billion of savings announced in November 2006

2 March 2007

SUMMARY OF LABOR’S SAVINGS

Figures in $million 2006-07 2007-08 2008-09 2009-10 Total
Limit FTB (B) to those who earn under $250,000 7.5 7.5 7.5 22.5
Withdraw Australia’s contribution to the European Bank for Reconstruction and Development 88.0 88.0
Remove tax deductibility for political donations 9.5 11.6 21.1
Remove surplus funding due to WorkChoices 53.5 138.2 141.7 61.4 394.8
Fold Invest Australia functions into Austrade 23.5 23.5 23.5 70.5
Reverse 2006 Budget measure for on-line electronic authentication 4.0 12.6 9.1 25.7
Abandon Medibank Private sale and associated sale costs 12.0 12.0
Reverse increase in MP’s printing allowance 2.0 5.0 5.0 5.0 17.0
Require industry to fund the Financial Literacy Foundation 5.3 5.4 10.7
Streamline government advertising and eliminate political propaganda 50.0 100.0 100.0 100.0 350.0
Abolish Prime Minister’s Community Business Partnership 2.0 4.3 6.3
Use centralised telephone services and websites to advise on aged care availability and save uncommitted Carelink funds 13.7 13.7
Require industry not taxpayers to fund the Do Not Call Register 4.0 10.1 7.6 6.2 27.9
Partially reverse 2006-07 Budget decision giving extra running costs to the Department of Foreign Affairs and Trade 4.5 8.5 8.9 9.4 31.3
Reverse 2006-07 budget decisions to increase Australian Securities and Investment Commission funding 19.3 36.7 36.8 37.0 129.8
Defer Access Card for further examination 145.0 157.0 302.0
Abolish Carrick Institute awards and reduce Institute funding 5.4 10.7 10.7 10.7 37.5
Absorb the cost of the Future Fund advisory unit 0.4 0.7 0.7 0.7 2.5
Reduce spending on non-Defence related recruitment agencies 7.0 15.8 15.8 15.8 54.4
Reduce spending on consultants 56.5 112.9 112.9 112.9 395.2
Reduce spending on political opinion polls/market research 7.5 15.0 15.0 15.0 52.5
Reverse December 2006 decision to create Digital Australia and increase ACMA funding 2.9 7.0 5.9 6.2 22.0
Remove funding to employers to promote WorkChoices under the Employer Advisor Program 12.5 12.5
Remove December 2006 funding increase for the PM’s Nuclear Energy Taskforce 3.9 3.9
Improve purchasing and administration arrangements of Commonwealth air travel 6.0 15.0 15.0 15.0 52.5
Reduce funding for the National Capital Authority 1.0 3.5 3.5 3.5 11.5
Reduce duplication in tax administration by abolishing the Inspector-General of Taxation 2.2 2.2 2.2 6.6
Extend Centrelink compliance campaign - ‘Keeping the system fair’ 51.8 53.4 55.0 160.2
Redirect 2006-07 budget measure to increase Australian Taxation Office funding to compliance activity to produce larger compliance dividend 7.0 62.1 175.7 235.7 480.5
Re-introduce the voluntary Student Supplement Scheme saving money in youth allowance and AUSTUDY 34.7 31.3 28.1 94.1
Reverse December 2006 decision for National Training Centre for Aerial Skiing 2.5 2.5
Close Nauru and Manus Island detention centres 10.0 27.0 27.0 27.0 91.0
Total # 275.4 943.1 994.8 789.4 3001.2
# Labor’s November savings announcement included $125 million arising from the proposed withdrawal of Australian troops from Iraq. Following questioning in estimates, no clarity was given of the Government’s actual funding in the forward estimates. Although the Government has no exit strategy from Iraq, it has not provided forward estimates of the cost of troop deployment beyond 30 June 2007. Labor will withdraw Australian combat troops from Iraq, but it is difficult to estimate the savings from the withdrawal of troops because of the lack of transparency relating to these costs in the forward estimates, as well as the fact that the precise timing of the withdrawal will be subject to the stage that the combat troop rotation has reached and negotiations with the United States and Iraqi Governments on a staged withdrawal. Therefore the savings from the withdrawal of combat troops cannot be included in this savings package.

My goodness, what will the aerial skiers say?

Adulators of our prime monster often pontificate about the proud, supposedly unequalled record of the object of their worship in keeping interest rates under control. Yet as it can easily be demonstrated, they are indulging in pompous magical thinking.

For example, from this 2006 7.30 Report:

MICHAEL BRISSENDEN: In the same interview Ian Macfarlane tested that bold claim about record high interest rates, whose rates were higher John Howard in 1982 as Treasurer or Paul Keating in 1989?

IAN MACFARLANE, FORMER RESERVE BANK GOVERNOR: The bill rate was higher in ‘82 and it was higher I have to say in ‘85 than ‘89.

MAXINE McKEW: Perceptions are interesting, aren’t they?

Kim Beasley said last November of Johnny’s more recent deceptive record:

John Howard promised in the 2004 election to “keep interest rates at record lows”, but they have risen three times since then, and seven consecutive times in all. He has betrayed the families who put him in office, and is completely out of touch with the pain his rate rises inflict on Middle Australia. Mr Howard is so out of touch, he urged the Reserve Bank to raise rates and told us it is the interest rate rise we have to have.

Globally, despite the Prime Monster touting a supposedly healthy, booming economy, Whorestralia has very high interest rates:

According to the OECD, only Turkey, Iceland, Mexico and New Zealand have higher interest rates than Australia.

Depending on the April 24 CPI figures, it is on the cards that there will be at least one more interest rate rise this year. Little Johnny will be praying he won’t have to explain away prior to this year’s crucial federal election the fifth interest rates hike since he promised at the last election to keep interest rates low.

On the macro front, as the United Stupids position their fleet to aggress Iran, Ahmadinejad predicts the downfall of Israhell. Israhell has previously threatened Iran of course, though they have now issued a decree that they have no intention of attacking Iran - has Bush decided to do the dirty work on Iran and told the Israhellis to back off or is a US attack on Iran off the agenda for the time being?

Russia is sounding supportive of Iran - they don’t want their trade and investments disrupted. Russia holds the key to the EU energy supply. Iran continues to make negotiation noises about its nuclear enrichment program - treading a very clever fine line. From what’s coming out of the Israhelli media, one can tell easily how much Netanyahu and his neozionists really want to whack Iran. The thing is, Iran haven’t invaded anyone for a couple of hundred years - unlike the Israhellis who are constantly whacking their neighbours. And the apartheid land thief zealots continue and will continue to reap what they sow until they compensate those they have dispossessed, whose fury foments with the ongoing crimes perpetrated upon them by the unrestrained Israhellis. Given the comparative lack of support amongst Democrat voters for Israhell, the Zionista will be pulling out all stops to keep the Bushista in power.

Bush continues to mouth ‘we are staying the course’ in Iraq as the civil war there rages. He denies the findings of John Hopkins Uni (a very conservative establishment) on the astronomical number of Iraqi civilian deaths resultant from the illegal invasion by the Coalition of the Killing.

Would an attack of Iran take the heat off Bush’s Iraq failure, or will an artificially high DOW and vacuous noises from Bernanke keep the US consumers placated sufficiently for a Bush success in the Congressionals? or will unaccountable Diebold do the job if all else fails?

Will the US neocons aka the PPT in collusion with the Bush buddies, the Saudis, further depress the POO prior to the elections to keep inflating the DOW and deflating the POG? The Bundesbank reveals they were cajoled recently by the Central Banks to flog gold but they resisted. Good on them.

Ratzinger puts his foot in it, dredging up antiquated rubbish about Islam. As if the Catholic Church hasn’t got its own nasty violent secrets - think witch hunts and burnings, the inquisition, the crusades, the missionary/messainic colonisations etc etc And that’s just the Catholic Christian sect. I expect whacking Islam takes the heat off the ongoing pedophilia investigations.

It’s odd that many people lump all muslims in together - you’d think they’d have worked out there are two sects at least by now. Yet Islam has many more sects than Christianity - one just doesn’t hear about them because the rads get the airplay, just like their silly western parrot counterparts. Think Alan Jones and Andrew Bolt.

http://www.gold-eagle.com/visitors.html

“Each month GOLD-EAGLE is accessed by top executives of thousands of international companies around the globe. They represent many different industries. Following are A FEW of the better well-known ones.

….

The Vatican”

According to this article, the neocrim fascists are manipulating the markets to keep interest rates down for the November US election. This nasty operation is accentuated by a bogus oil “find” by Chevron (Rice’s old firm) in the Gulf of Mexico.

Logically after the election, there may well be a gawd almighty stock crash as artificial constraints are burst and effects of lower consumer demand and a housing slump kick in. Gold and other commodities in demand should however do quite well.

Recommended by Dub - “Empire of Debt” by Addison and Wiggins, who are the wits responsible for The Daily Reckoning.

Another to add to the pile after I demolish the current Femme Fiction offering.