Cartoon: By Nicholson.
In a brilliant piece of satirical writing News Ltd is reporting on just how delighted, Australian taxpayers feel about helping to bail out Greece and other European basket case nations, hell why not all of them? They are only quoting one man, Treasurer Wayne Swan and yes, this is serious. Being Treasurer, Wayne is authorized to use the collective we to cover his decisions.
Over the last few months observers have got used to news of failing Euro zone economies and efforts to pull them out of trouble. These efforts usually come with conditions requiring austerity measures to reign in the runaway debt, which is causing the trouble.
The populations respond, showing their gratitude with riots, arson attacks, and general destructiveness which modern economists like Paul Krugman, believe creates vital stimulus. The reality is that entitlement raised populations believe that when their own nation’s money runs out, the international community should provide for them unconditionally.
Wayne maintains that Australia would contribute its share, without actually stating why we have to share responsibility for the plight of Europeans who have lived beyond their means:
"What we have said and what many countries have said today is that they are very supportive of the IMF having the resources that it needs to meet the challenges of the global economy," Mr Swan said.In other words even the US is baulking, but we are just blithely going ahead with contributing to the welfare of foreign powers. Maybe he is doing the payback for his Euromoney award as worlds best finance minister, no matter what it costs the Australian taxpayer.
"Australia would always contribute what its share would be, of the IMF. So we are not talking about doing something that would be over and above our normal share of any particular set of resources the IMF was seeking to marshal. …
"Australia's view is very clear - we stand ready, as do many other developed economies around the table today, to work together to ensure that the IMF has the resources that it needs, should they be required.”
Delegates for the US - a major contributor to the IMF - were among nations reluctant to see the body boost its commitments, namely the propping-up of European financial institutions.
Since Labor assumed power, Swan has presided over an immediate move from budget surpluses to massive deficits, which is consistent with the history of Labor governments. In the middle of an unprecedented boom in mining commodities, he and his mob have pissed the proceeds up against the wall and borrowed more, to the point where we are $100 million per day down the chute for the entire duration of their incumbency.
We are being hit with two massive new taxes to support their spending, yet nothing is put aside to see out tighter times ahead. The boom will not last forever and the last thing we should be considering is propping up Europe.