Jun 4, 2012

Swan dismisses the economic Wall of Worry

Economic conditions overseas are deteriorating. Wayne Swan would be wise to acknowledge that it might affect the budget.

This morning’s sharemarket fall gave Wayne Swan’s remarks on AM this morning a decidedly Pollyanna feel. The Treasurer was spruiking the good and ignoring or avoiding the bad, such as the weak Chinese and European manufacturing data, the poor jobs US jobs report for May (and the sharp cut in the already weak number of new jobs for April), poor data from India, Brazil and, of course, the struggle by Spain to find a way to bailout its banks without being forced to ask for a bailout for the country as a whole.

Commentators and economists have been calling it a “Wall of Worry”. Whatever you term it, the global outlook is worsening by the week (there are new Chinese economic figures out later this week that will raise fresh concerns about the economy on which Australia’s current strength is based).

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12 thoughts on “Swan dismisses the economic Wall of Worry

  1. Simon Mansfield

    The dynamic bimbos of Australian economic analysis actually have the audacity to criticize Swannie for not admitting the local economy is going off a cliff.

    Come on guys you two have been drowning in the koolaid for over a year now – dumping on anyone who doesn’t sing the praises of The Great Australian Economic Miracle.

    The two of you are as bad as Gittins and Pascoe. Instead of dumping on Swannie for talking up the economy you should be going after the RBA Governor who has spent the past three years doing his best to push the local economy off the cliff – and now that it’s happening – he’s scrambling to cut rates while trying not to spook the punters by cutting too fast.

    Australia would be far better off if all five of you were put out to pasture before your collective intellectual greatness does any more damage.

    Meanwhile Gillard and Swan are about to discovery where the polls really end up when the economic cycle totally derails the political cycle.

  2. Suzanne Blake

    Incompetent Swan is in his own bubble. Will be fascinaing seeing what excuses for failed surplus he comes up with

  3. Bill Hilliger

    @SB …Wayne Swan can bring about a surplus quite easy; do what ‘lazy’ Peter Costello did, sell off the ‘Australian’ people owned assets. Unfortunately all the low hanging and easy to sell assets has already been sold off by ‘lazy Pete’ during the Howard/Costello years. However, there are a few assets left e.g. Medibank Private, the ports, etc. Swan should do this ASAP, because if he doesn’t, Joe Hockey will do so. Hockey will claim to be economically responsible by bringing down government debt, and stop the “drunken sailor spending” debt brought to the Australian people by the current government. Joe has already stated intent to do so on many occasions. My question should the Sydney Opera House be sold to an Australian billionaire to get Australians out of debt, Yes, I know the opera house is a NSW asset, but I bet Joe Hockey doesn’t.

  4. Suzanne Blake

    @ Bill Hilliger

    Costello sold them to pay back Keatings $96 billion debt, what do we do now with $300billion debt.

  5. Bill Hilliger

    @SB Wayne Swan’s excuse for the failed surplus will be: “I forgot to sell off Medibank Private and any other remaining public assets that are still out there.” And that would be the truth.

  6. Bill Hilliger

    SB yes indeed and nearly f* ck all assets left now that we fall on difficult times once again. Sell off assets instead of as a nation, over time trading our way out. One day there will be no assets left to sell, what will the Coalition do then?

  7. Bill Hilliger

    Fact SB …Interest rates, unemployment, inflation, and the official government bond rate has been lower under the current government, than at any time under a coalition government.

  8. AR

    There is only one nation, on its own land mass with a wide variety of almost perfect climates, with every resource – animal vegetable & mineral – required for comfortable modern life. Unfortunately it is massively over inhabited by a bunch of whinging, whining, grasping greedheads who don’t have the brains to realise how lucky they are.

  9. Gocomsys

    Is some sort of “troll control” mutually exclusive with freedom of expression I wonder? At least the troll in this instance triggered excellent and down to the point responses. Splendid!


    According to Tyler Durden from finanical website Zero Hedge:

    “the real problem is not gvernment debt per se. the real problem

    is that $70 trillion in G10 debt is the collateral for

    $700 trillion in derivatives….

    that equates to 1200% of global GDP and it rests on very, very weak


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