KEVIN O’Lemon 2.0, identical in every respect to version 1.0, continues to roll merrily along with his endless array of political circus stunts. Kevin and the ALP are attempting to focus on debts and deficit; more of the problems that Labour has created for everyone.
Labor recently launched a new 30 second propaganda piece, entitled “The Facts On Debt,” which is as sickening as any of his gibberish. If you were fortunate enough to miss it, you can sample it here.
Buried deep in the Keynesian compost that is his Ruddy mind, he of course neglects to mention that the currency has depreciated about 14% since May.
While one can argue that this is an arbitrary measure, compared to the USD, it is similarly valid in comparison to the Yen, the Euro, and the pound. So with similar accuracy in comparison to Kevin Cowboy’s ‘facts’, every asset denominated in AUD has depreciated some 10% to 15% in the last three months. Early May on AUD was worth 1.04 USD. In early January it was near 1.06 USD.
The establishment loves to spruik the merits of a lower dollar, and to use a more robust dollar as a scapegoat. The sheeple gobble up this nonsense along with global warming dogma.
In fact, the value of the currency is very closely related to the current account, since the value of a floating currency is established on the basis of supply and demand by the market. The current account and the capital account by and large make up the balance of trade.
In economics the “Pitchford Thesis” states that “A current account deficit is not always a problem. The Pitchford thesis states that a current account deficit does not matter if it is driven by the private sector”.
Through all those Howard/Costello years when Australia ploughed its way painfully back from the mismanagement of Labour, the Australian economy was held up as substantive evidence of the validity of the Pitchford Thesis. It is valid only when public debt is low or of little significance, and debt is held by the private sector. Anyone with half a brain can understand the rationale. Australia’s enormous PRIVATE debt, incurred by such firms as BHP, Rio, and Xtrata is used to procure assets which generate revenue, in stark contrast to PUBLIC debt which is generally wasted on nonsense; in this case ‘stimulus’ that ended up in the pokies and tobacco, school halls for schools about to close, pink bats that had to be fixed, incentive to grow forests which are now being burned, and the list could go on ad infinitum with this destructive ALP empire.
The senseless spending of these wackos was of course financed by borrowing primarily in USD, so that repayment is now 15% more expensive than it was when Swan borrowed to foolishly waste. Do you still think the ALP can run the country? The answer is YES….right into the bloody ground.
So if Kevin Dudley were sufficiently intelligent to be honest, he would admit that the reason your net worth has effectively taken a 14% hit is due to the mismanagement of the nation’s finances by the Rudd/Gillard/Swan destructive strategies, whose sole purpose is to put the country on its knees for submission to the UN’s New World Order.
If you wish to see the end of Australia, just vote ALP.