ozandy>>bank guarentee should have been limeted>>[australia is the only one who guarenteed ALL deposeted funds]i think that is fine[i dont like the elites[but they dont have their wealth sitting in banks]

our retireees do[in good faith the deposited their fiat-paper[the least banks can do is ensure they get ALL_their paper back[i lobbied for the fed UNDERWRITING this fiat paper deposited in good faith,so those TOO trusting[who lubricate this boom bust by being periodiclly plundered OF their banked funds[didnt get looted this time]

speculators take risks[those who put it in the bank arnt wanting to risk loosing it[thus presumed it safe in a bank,rudd and co saw the fed fiat paper deposited should be insured in full[by the fed]for those who will yet again be set up for legal theft,when the next banker sets his own bank up to fail[WHY should those who bank cash bear this risk?

if fools cant trust banks just who can they trust?[their mattress?][recall at that time in uk alone a few bank-runs had allready killed a few banks]but the idiots took it out of one bank#only to put it in an other[LOL}

they are so innocent they dont know all_banks are controled by the fed franchise that controls all banks,but look at what that money transpher was going to do if it spread here[turn-bull even cashed-in][but simple words did fix it overnight]and yes the capitalists are dancing[as long as they got credit]

wealth is only about how much more credit than debt you OWE[there are very few really got wealth,most just got credit[thus STILL owe the debt]

howhard knew this was comming 2 years ago[thus'allowed'us to top-up our super'just before the market collapsed[LOL}

[it nearly worked,howhard nearly did it to us again]but many still got no clue the damage his reign wrought/brought upon us all[this bubble began with the bailout following 911
#
[a cowards plan]to distract us then from the enron collapse[the enron model is the direct cause of this pain

[note yesterday the 3 rd richest dude confessed it was all in his mind[he just wtote whatever numbers his'investers/sheep'wanted to hear]

Ozandy

Howard cannot escape criticism and was accused of hoarding the surplus instead of spending on infrastructure and other possible priorities. Rudd had once asked, why have a surplus and not use it? 2008 was the answer. Where would Rudd be sourcing the funding for the stimulus package and the consumer Christmas bonus without that surplus?

My intention however in using the term "government" was to refer to any political party.

The term "government" in para 6 on knowledge of China however, should have been "Rudd government".

Regardless of who contributed what and wasting precious time laying blame, what is crucial, is who in the chair and in charge now.

Rudd has started with the accelerator to the floor before checking the track, steering and brakes, with the attention of delivering extensive change and being all things to all people. This only serves to divert attention away from the serious problems facing Australia and not using all available resources to address the urgent economic priorities.

Focussing on political agendas at a time when the focus should be on the economic crisis before setting clear priorities implies immaturity and poor judgement coupled with very poor guidance and advice.

It is only when critical priorities relative to restoring the economy have been positively confirmed and tested, that formulation and introduction of realistic and practical policies can proceed.

If Australia can't afford it all, don't commit to all just now.

Allow reserves to recover on prudent management and then pay for priority socio economic policies after ensuring that funding necessary to ensure that economic growth comes first and there is provision for the unexpected.

Rudd and Swann are correct (along with many others around thew world) there is pain to come and not just in the short term.

You are also right on generation change. There are no magic bullets or quick fixes and the "today generation" will begin to experience life without endless and easy credit. Saving may become a new life changing experience.

For the government, it is a matter focussing on priorities and getting it right!

Arthur Thomas

Don't forget that Kevin is also talking the economy down telling us how bad things will be in the new year.Is Kevin trying reverse psychology here?Perhaps things won't get that bad and we can then thank him for spending the surplus.

The reality is that we have serious structural problems with almost no manufacturing.Taxes kill the incentive to save so we borrow to pay for consumerables.Our State Govts have plundered their economies to pay for fat cats. Balance of payments deficit now $750 billion.We cannot even afford the interest bill.Our infrastructure is run down so our productivity is low,thus we are less able to compete internationally.With the exception of our banking system,we are on par with the US.Spending the surplus is just delaying the inevitable hard decisions that have to be made to initiate structural reform.This reform must include the legal system[litigation],insurance,tax,industrial relations,OH&S,Govt over Regulation,tarrifs,and regulation of the credit industry.

Ordinary people are not sharing equitably in the GDP which has doubled to $1.1 trillion in the last 10 yrs,with an actual fall in real livimg standards for many.

INFLATION has been the big boogy-man

howard got told[or believed]that inflation has three causes
[real estate,petrol price and wages]so removing two from the equation[and oppressing wages
was seen as his_cure]

so all howhard policy must be seen in this light

we get a pay increase[he gives us gst]
we get a pay increase[SUPER he steals it to prop up the market]

we were getting intrest from a bank[that was keating his story set up the inflation boggy man[how hard just run on his lead[keating was offered a loaN AT 3 AND A HALF PERCENT[no said the world-bank we will lend it at 13.3/4 % and by the way YOU WILL PRIVAtise it

THING IS HOW-HARD WAS told THE SAME RE DEATH DUTIES AND TELSTRA,his final coup was to be privatising the snowey-river[that nsw still holds big debt payments for]just to serve his banker masters

just the same rudd rebels against[in giving to the poor]yet props up with credit guarentees,[LOL]its a fithy game[but our puppet_masters DO HAVE REAL POWER

[they could indite and ceaze back all ther looted assets,and restore balance where the poor arnt so badly oppressed their total wage is chewed up in work and rent and food[poor Gmo food killing us[or vacines with mercury/flue-ride?

[or rotted teeth,from the dentist cartel keeping their franchise[because govt hastnt killed off that baCTERIA THAT CAUSES TOOTH DECAY[a simple antibiotic[alone][could send broke the root canal industry [putting mercury next to our blood vessels]

wont get into bligh selling off water[yet us paying for a desalination plant that dont work[or a pipeline so swanbank and mobile refginery can use all the water[or the recycled water plant gifted to mobil refinery lyton]

[or that gladstone magnesium,plant subsidised to the tune of half a bil each[by howhard/beaStlie]to their mate[or the other mate who re wrote the childminding industry

[or packer/murdoch getting that band consuming babndwidth for free[or enron style of charging for web acces[or the web censure

[or the new bankers tax[carbon-tax!,

or selling speed camera franchises[tollways,tunnels;export infastructure
[the deliberate holding down of the au$ to subsidise export[
plus drug laws]

*The reality is that we have serious structural problems with almost no manufacturing.*

Actually not true, its just not in cheap consumer goods that you
see at Woolies or Coles. Engineering companies supplying mining
and agriculture with specialised equipment for instance, have been
booming. Their major shortage has been labour. Meat processing
again can't find the labour. The list goes on.

*tarrifs*

So explain to me how consumers, including the poor, will be better
off paying 60$ for an Australian made shirt, rather then 15$ for a
Chinese made shirt. How will that improve their standard of living?

Again Yabby you've got it wrong.

That non-Australian shirt would comprise a huge component of Aussie materials, cotton currently sold very cheaply to China, a huge component of Non Aussie transport, probably chinese containers on Chinese owned ships, Chinese production costs that exclude all the regulatory cost applied to Aussie competitors, Chinese government regulated financing, ie cheap interest ... if any, and Chinese IR regulations.
Apply the same sorts of advantages to all our trading partners and the answer is no not tarriffs, as all 'the think in the square' mob yell.

Here's the un-obvious, tax exports ... to the point where imported manufactured items are competitive, but barely, with locally manufactured items.

Make the bastards compete fairly.

So what if our exports of ore's, coal and natural raw materials plummet. The locally manufactured items would soon take up the unemployed slack and we'd probably even eventually produce cars to sell competitively in Japan and her export markets. And be reassured our economy would recover if Government assisted manufacturing with cheapo finance, lower taxes and temporary capital subsidies.

Rest assured this what our rivals would do to us if the positions were reversed.

But especially long term our economy and our raw material advantages would be ours and both would ensure an specially strong future for our kids and grandkids..

Radical and it would hurt... of course ... but we're going to hurt anyway and such actions might actually encourage an economy that produces wealth rather than an old colonial model that sees ourselves as temporary Australians and simply strips and sells, the easiest thing in the world, and then imports manufactures, the second easiest thing in the world.

Affect world trade ... of course ... but only until such time as our compertitors producing ores, coal and natural raw materials saw our internal economy recovering. They soon adopt the same strategies.