Mangled Thoughts

In, Good job figures point to gloom times ahead, Mr. Jackson pointed out:

“We have been told that the Reserve Bank’s statistics on unemployment is painting a fairly benign picture of the economic landscape. Let us now look at the Reserve’s monetary statistics… in May, a 6.5 per cent deflation in five months. I also pointed out that the June figure of 224.7 suggested that the Reserve was trying to reflate… The latest statistics show that the June figure has been revised upward to 232.5 and now stands at 232.6 for July. None of this is good or clever.”

Having read the article in the morning, in the afternoon Treasurer Wayne Swann delivered a ministerial statement to Parliament. What he had to say is typically dreadful. However, one draws attention to the following:

1. “A little over a year ago, global financial markets began a fundamental repricing of risk. Few commentators or market actors foresaw the turmoil this would inflict on global financial markets in the period since then.”

That’s because the ‘mainstream’ commentariat are lousy economists. Two gentleman have predicted the now unfolding dangers, Mr. Jackson and Dr. Frank Shostak, and in this regard here is another interesting read, by Shostak:Can the US Government save Fannie Mae and Freddie Mac?

2 “We have taken steps to support liquidity in the government bond market to ensure our broader financial markets operate more effectively.”

Injecting ‘liquidity’ is, to use what is apparently a quaint term, inflation - money creation. The Government cannot do this, the RBA is independent of the Government. It looks as if Swann parroted the head of the RBA Mr. Glen Stevens, because it seems the RBA is proceeding as Jackson lifted out, it is trying to reflate.

What we have is the RBA culpable of massive money creation, over many years. This set in train the recession now emerging into clear view. Then, it deflated. Now it is trying to rectify the keynesianitic disease it inflicted on Australians with another bout of money creation (don’t try this at home unless you wish to enjoy a comfy room in Hotel Prison).

Lousy economics leads to headless chook syndrome , a schizophrenic headless chook at that. Turning back to 2005,

“Recently Glen Stevens, Ian MacFarlane’s deputy at the Reserve Bank of Australia, warned that the economy was approaching capacity constraints and so growth would slow as output failed to keep up with demand, meaning monetary expansion.

“This is truly bad stuff. Unfortunately this is the kind of advice that Costello is getting from the Treasury, his pals in the private sector and the media. And he’s buying it.”

(Peter Costello’s economic fallacies and the credit crunch, part II)

Swann has bought it too, but this is no surprise. The Rudd Cabinet are fascist thickheads. It is, therefore, highly proper and consistent of them to get things completely wrong, including destroying Australia by the Centre for Independent Studies backed Co2 taxation, on top of their ‘grand plan’ for Soviet type central planning. What is unacceptable is the Liberal Party spouting the same arsenic, but look at who advises them.

Wayne Swann’s statement amounted to, “how do you take your death by arsenic poisoning? Painfully, or less agonisingly?” Deputy Leader of the Opposition and now, as of yesterday, also Shadow Treasurer, Julie Bishop (yes, this incompetent and dunderhead) responded. She didn’t bother letting her opposite number kick her head in.

She was considerate in saving them the effort, though it denied them pleasure. In this, she acquired her one and only skill. This must mean, according to Bishop, she is an undergraduate in physics and you can tell she is: She managed to kick her own head in.

“We are also benefiting from the growth in Asia, particularly China. The diversification of our exports has reduced the volatility of the terms of trade. Australia’s flexible workplace relations laws have also helped by providing job opportunities. Reform of the tax system has also been crucial to provide dividends to Australians and to improve the competitiveness of our tax system.”

As appalling as this, her capacity for self crippling rose higher than the little Sun King Boy Kev Rudd the Dudd’s flamboyant potty straining efforts:

“Instead of lowering official rates, central banks have tried to separate their monetary and liquidity policies, preferring to provide into the global banking system a massive amount of cash.”

She preceded this mush by saying:

“In their mad rush to trash the coalition’s economic record, the Treasurer and the Prime Minister declared that inflation was out of control. The Treasurer’s now infamous declaration that the inflation genie was out of the bottle, on the day before a meeting of the Reserve Bank, was reckless… This had a major impact on business and consumer confidence at precisely the wrong time of yhe economic cycle.”

One thing is painfully clear: There is no Opposition to the Rudd Cabinet of pantalooned cretins. There is no Liberal Parliamentary Parliament. They share two bananas between them and they call them their brains.

The bananas are Institute of Public Affairs, Centre for Independent Studies, and HR Nicholls Society. Darn, make it three Bananas. Bananas go off and squish easily.

Another thing about Andrew Bolt:

Andrew Bolt must be receiving his economic advice from Bishop. Does this mean he accepts her authoritative judgment, sicence is a skill and that he should follow her example and admire and “cherish” scientists. This, can’t help pondering this, is all very disturbing; wielding loo paper is a major skill. The Club of dunderheads admire all skilled Australians.

Bolt wrote inflation is ‘the price of a successful economy’. That, Costello handed this successful economy over to Swann and Swann wrecked it in a few months flat. What else is to be expected of a chump also put in a great effort destroying the fight for freeing labour markets, and doing a Hugh Morgan in the process. This $3,000 + a week baby telephone sitter told modest readers, at Murdoch’s expense, modest Australians are ingrates or else they would realise how well off they are.

To which, Morgan, Bob Day, Des Moore and Ray Evans told modest Australians they are not only wealthy ingrates. They are so wealthy they should be given massive pay cuts to reduce them to their proper place, destitute serfs. It never occurs to this lot to lead by example.

Of course, Bolt would not commit such cretinous, callous nonsense and do a little bit of what he is paid $3,000 a week to do: lift a phone and chat to someone who could advise him soundly. Oh, I know why can’t do this.

The buffoon is in with Kroger, Costello and the Idiot Club otherwise called HR Nicholls Society. Oddly enough, so too is Tim Blair. Therefore, both of these ‘guns’ know all about blacklisting any genuine Liberals and sound, rock solid economists such as Mr. Jackson and smearing their names, and dragging their reputations through the mud. Perhaps, however, they don’t know why their smelly Rightwing pals do this, though they join in the fun.

It’s because their pals are afraid of being overshadowed by Jackson and, indeed, any other genuine talent no one has heard of because this lot of Party Pooping wreckers deliberately suppress talent in Liberal Party and think tanks that are supposed to serve and support Liberal Party and its causes, as opposed to destroying them. Thus, the Liberal Party is lumbered with parasitical morons such as Turnbull and Bishop, who make a jolly good lobotomised Darby and Joan comic team.

Darn, made an error. They can’t have been lobotomised, because this assumes there was something inside their craniums to operate on.