Crudds Gone

**clean32** · 25th June 2010, 03:34 AM

Originally Posted by rick130

Monetary policy and Fiscal policy are two totally different things.

The Reserve Bank controls interest rates and is totally independent of the Federal Govt.
Its primary concern is inflation and the control thereof.

The Federal Govt contols Fiscal policy, its primary way of influencing that is income and expenditure, or taxation and spending.
Treasury can only influence interest rates in a very abstract manner, the markets are the major influence on the Reserve.

In a nutshell private spending dried up so the Feds spend up, it's a classic response to a recession as I've already posted earlier in this thread, although the manner in which the money was distributed could have been a done a lot better, but hindsight is always 20/20

As I said earlier it has been argued by some economists that had Costello and Howard actually banked the surpluses that should have been banked way back whenever rather than buying elections with cash handouts in a very cavalier manner, the country could have been in a much better position.

It all comes down to everyone's biases and how we view things

The first bit was correct but the bit about not spending the money is not.
you are not correct when you say "the manner in which the money was distributed could have been a done a lot better" that is based upon the assumption that you believe that the money should have been spent on some thing that created jobs rather than just giving out cash to those who would just spend it.
Well actually in this instance giving the money to those who have terminal holes in there pockets was the correct way to do things. As you know it’s not about how much money there is but how fast it spins though the economy that counts.

**clean32** · 25th June 2010, 03:51 AM

Originally Posted by CraigE

Interesting concepts, but you conveniently forget that the mining industry is pretty much all that has kept our economy buoyant for the last few years and why we weathered the GFC. We have the resources but not a lot of down stream processing and this is not the fault of the miners, but the fault of the governments and world economies that make it uneconomic to process and produce items in Australia.
In all honesty would you be prepared to pay $5000 for a fridge that is currently $1400? Or maybe you would be happy to work for a few $ a day so it can happen.
The point of the Minerals Council and the Chamber of Minerals and Energy is to promote mining and at present that is mainly exporting.

ok sorry about my last comment it sounded a bit off, i just had to race off to work.

In a nut shell, did mining help in Australia weather the GEC, YES. But it was though no action or actions taken by the mining industry itself. In fact the mining industry used the GFC to cut back production to try and keep prices high. They even dabbled in espionage to the same end. Staff were taken off the books and subbies not called back. Fights out of Adelaide were and are still down. More non core services were contracted out rather than retain there in-house staff, ISS and spotless have been crowing about this as well as advertising on SEEK etc. So to hold the mining companies up in a shining light is just bullocks.
on the other hand, just the fact that we do have mining or in other words a hell of a lot of natural recourses, in a country with a reasonably stable history ( as short as that is) and reasonable but dated infrastructure as well as a responsive government. Lead the international community of investors to see Australia as a bit of a safe haven. a good place to park there dollars, rubles ,yen or what ever. It is this last fact that insulated Australia or had the greatest effect.

So in that light to say that mining saved us is not correct, BUT to say if we didn’t have mining would we be in the same shape as we are now? Defiantly not.

The last bit on mining, they make profits, big profits, they pay taxes on this profit, then they pay the shareholders ( our super) then the balance goes over seas. ( the simple version)

**Sprint** · 25th June 2010, 06:34 AM

anyone remember the easiest way to keep your job?

make it more profitable for your employer to keep you than to hire someone else

same deal, but in this case, think of the mining companies as the employer and Australia as the employee

**Blknight.aus** · 25th June 2010, 06:35 AM

IMHO....

we need a very breif very brutal short term dictator. someone who will offload all the high cost goody two shoes crap policies, cut the costs of running the parliment house, fix what actually needs fixing rather than skirting the issues make some honest YES/NO type decisions rather than cover your ass meandering maybes and then once everythings looking better hand it all back to the pollies and go there ya go, Its fixed try not to break it again.

lotsmaw · 25th June 2010, 06:59 AM

Where is Chainsaw Dunlap when you need him?

**Lotz-A-Landies** · 25th June 2010, 07:40 AM

Originally Posted by lardy

Watch this space I am not even sure that the u.k. is out of the mire just yet.........My vote goes to Harold holt legendary olympic swimmer and one time submariner

However any upcoming problems for UK will not be a direct consequence of the GFC, it will be a secondary effect of being part of the EU who is having to prop up other EU countries particularly the ones in the single currency Euro zone.

I believe that Harold Holt ended up his days an a individual submariner (sans submarine)!

**incisor** · 25th June 2010, 07:55 AM

is walt disney eyeing aulro off?

more fairy tales in here than the last set of golden books i read to my grand kids..

i worry for the national iq if people really believe some of what i have seen them espouse in here...

far right, far left, more like far out! in a cheech and chong sort of way....

hey man this is dave, let me out man!

**feral** · 25th June 2010, 09:13 AM

Oh, come on Dave,,,

Its the AULRO Think Tank

**clean32** · 25th June 2010, 09:50 AM

Originally Posted by incisor

is walt disney eyeing aulro off?

more fairy tales in here than the last set of golden books i read to my grand kids..

i worry for the national iq if people really believe some of what i have seen them espouse in here...

far right, far left, more like far out! in a cheech and chong sort of way....

hey man this is dave, let me out man!

and your thoughts are ??

**Albert** · 25th June 2010, 09:51 AM

I listen to a lot of radio national and other ABC radio on night shift and have heard a lot over the last few months from indendent experts from Aus and overseas. Most have said that the super tax is being done aready in other places and the one proposed here is a good and reasonable one that will not hurt the industries. But they have also said that Rudd is a very bad sales man!
On the ABC2 sunday program last week the presenters had a look back on his election promises and said he had done good on most of them but notmany people remember the good things that happen and only remember the stuff ups blamed on him.
I am not a labour voter (but send preferences that way above libs) but I think he was hard done by.
Most people vote like sheep and will behave like them if it is easier.

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