From afar it looks like madness, from the Wall Street journal;

Australia entered the global financial crisis with one of the soundest fiscal positions among developed nations. Now, thanks to the Labor government of Kevin Rudd, that's no longer the case.

Treasurer Wayne Swan announced Tuesday a 32.1 billion Australian dollar ($24.3 billion) fiscal deficit this year and forecast that it would rise to A$57.6 billion in 2009-10 -- the largest in the country's history. Canberra plans to borrow money to fund the shortfall. Outstanding debt will rise to A$300.8 billion over the next four years from around A$111.9 billion.

This is an extraordinary fiscal turnaround from only a year ago, when Australia turned in a budget surplus of A$19.7 billion. The country entered the global economic downturn with historically low unemployment, muted inflation and very little debt, thanks to an uplift from strong global growth -- especially from China -- and prudent fiscal management by the former Liberal government and its treasurer, Peter Costello

This Keynesian revival comes at a particularly bad time, given that tax revenues are falling as the economy slows, a normal feature of economic downturns. Tuesday's budget wrote down A$23 billion in projected tax revenues this year, the biggest downward revision since the 1930-31 fiscal year. Still, without all that spending, Canberra would have announced a small budget surplus Tuesday.

yet so many of our own Media still pick at the edges and fear to call the Rudd government on thier incompitence.

Tough budget with cuts, and cuts, and cu....

The Federal Government will invest $2.1 billion over five years as well as additional funding from the future Education Investment Fund rounds

The Federal Government has committed $4.5 billion to clean energy in the 2009-10 Budget

A further $1.3 billion has been outlined under the 2009-10 Budget to close the gap between Indigenous and non-Indigenous Australians. with A further $148.9 million will go towards establishing a body to reset the relationship between Indigenous and non-Indigenous Australians.

The ABC will be given $136.4 million in new funding over the next three years to develop an advertising-free digital children's channel and increase output of Australian content.

A record $64 billion in health and hospital funding has been flagged in the Federal Government's 2009-10 Budget

$1.3 billion over six years to enhance national security, border protection and anti-people smuggling measures. (Sadley this portion of the $1.3 Billion could be managed by a simple policy change) the Government will spend $654 million fighting people smuggling and to address unauthorised boat arrivals.

And how will Swan try to cover the stupid levels ongoing? Why sell our nation of course;

The Federal Government is planning to sell a record $60 billion of bonds next financial year to raise the funds needed to replace plunging revenues and increased infrastructure spending.

The sale will dwarf the estimated $35 billion in bond sales this financial year, and is well up on the $5.1 billion issued in 2007-08, when a Federal Government in surplus was issuing debt mainly to keep bond markets alive.

Wayne swan is so quick to blame all the woes on the nasty global conditions out of his control he inadvertently admits to being a big part, one third. of the problem;

"Over two-thirds of it (debt) is actually the revenue downgradings," he said. "It's this new reality where out revenues are being smashed - just smashed. That's what the debt is all about."

Hmmm.. So instead of reducing spending to compensate for the loss of revenue, Rudd and Swan have spent over $100 Billion in order to compound our woes.

And he thinks its a good thing!!

Seeing how it doesn't kick in until 2011 its more of an election promise than a done deal... 

but it still has the stink of expending Taxpayers money when there just is no more left, and for what benefit?

THE Federal Government will commit to paid parental leave from January 2011 for those earning less that $150,000 a year, Treasurer Wayne Swan says.

Political benifit of course, no more. If it really was a measure that increased productivity they would have implimented it now to save money / generate income.

I think the budget will target a whole lot of people at that magic $150,000 per year income mark. But hey, I'm sure that based on economic modeling, not voter demographics... and a pig may levitate.

Wayne Swan Crows about the success of the Cash Splash;

"Today's data, showing retail trade four times higher than expected, is undeniable proof that the government's economic stimulus package has been extremely successful in supporting a retail sector which employs over one million Australians," Treasurer Wayne Swan said.

But the facts are easily reveled;

...only about 17 per cent of the December "cash splash" was spent.

"So that had an impact on retail sales figures, but it was very little bang for a very big buck," Mr Turnbull said.

In effect, the government's economic stimulus package did little but move peoples private debt to the public purse.

Isn't Mr Rudd such a nice chap for having the tax payer pay off so many credit cards and personal loans?

The Roman empire was just "temporary" too.

"There's no doubt the temporary deficit will last longer as a consequence of revenue downgrades imposed on this country by the rest of the world," Mr Swan said.

I'm sure that the mad $100+ Billion dollars of spending; Broadband roll out ($22b +), stimulus packages ($52.4b), “Nation building” ($4.7b), COAG funding ($15.2b), Car makers bailout ($6.2b), Homeless package ($6.1b). and a further promised $300b worth of defence spending, would have had nothing to do with our massive black hole that will take a minimum of 6 years to dig out of.

What sort of fools does this Rudd Government take us for?

Surely even the most rusted on Labor person must wretch at these sort of statements?  

How are our leaders doing prior to this next budget, hows the nerves fellas?

Kevin Rudd:

Australian Prime Minister Kevin Rudd said a shortfall in tax receipts will be greater than A$115 billion ($82 billion) the government forecast in February.

“More than two-thirds of the deficit is a result of a collapse in taxation revenues,” Rudd, 51, told Melbourne Radio 3AW. “We have said there has been a A$115 billion collapse in taxation revenues and with these new growth figures from around the world, there will be a greater reduction in taxation revenues.”

Well dur... So maybe if you hadn't listened to the IMF back in November, running around claiming "China will save us!".

You most definitely should not have thrown $100 billion in extra spending during the last year, otherwise you may have found some sympathy. But all your telling us is, your acts are having as bad an effect on our economy as the world recession. Nice call.

Wayne Swan:

The Treasurer, using his most pessimistic language to date to describe the budget 2009 position, said China's growth report "provides stark evidence of the impact of the global recession on the mining boom, which supercharged Australia's economy in recent years".

"The simple fact is that a global recession, and deep downturns for our key trading partners, make it certain that our own forecasts for growth and revenue in the budget will be substantially worse than in UEFO," Mr Swan said, referring to the updated economic and fiscal outlook published by Treasury just two months ago.

I think Wayne has lost his mantra of keeping "the surplus in the positive over the cycle" unless he always meant the cycle was over 100 years, he never did clarify that did he.

Lindsay Tanner:

Mr Tanner said it remained 'yet to be seen' whether the government would exceed the $200 billion debt limit it set as part of its February economic stimulus package.

'We have yet to finalise our projections of the loss of revenue that this further deterioration of the global economy will be imposing on the Australian economy and the Australian budget,' Mr Tanner told ABC Radio on Thursday.

He said the latest forecasts released overnight by the International Monetary Fund (IMF) indicated a more severe collapse in government revenue than the forecast fall of $115 billion in tax receipts revealed in February.

'It's pretty clear from these figures that we'll see even bigger deficits as a result of that change,' Mr Tanner said.

Of course it would be nothing to do with the Rudd governments inability to make tough and unpopular decision for the sake of our future prosperity, would it, say on things like;

A $43 Billion dollar Broadband roll-out. The 43 Billion dollar amount is of course pre budget blowout, so expect more of a 50 Billion+ hole in the upcoming budgets.

Australia's biggest military build-up since World War II, led by a multi-billion-dollar investment in maritime defence, including 100 new F-35 fighters, a doubling of the submarine fleet, and powerful new surface warships. With a expected end bill of $100 Billion dollars.

The reestablishment of ATSIC where: A substantial majority of participants said they wanted a fund established to give the body a capital base, and wanted the body to be set up through a future fund financed via a percentage of mining tax receipts.

and we are yet to see the governments position on Paid maternity leave, first home buyers, etc. In fact the only thing we know for certain is that the Tax base will have a known hit as pensions are increased. Thats a good idea in my opinion.

But something has to give in the budget or we will end up with the $300 Billion dollar black hole we are being softened up for.

First it was Rudd and his "Shit storm" now Swan is "Kicking Bums", I do notice he wasn't game to say Arse, why are our national "leaders" such bad boys. The ALPs potty mouth strategy is revealed;

Swan's choice of rough-and-ready language has a long history in Australian politics, with the most recent example coming earlier this month from Prime Minister Kevin Rudd in a television interview.

Rudd quickly apologised, but critics said the apparent gaffe was carefully scripted to connect with his audience, which included a number of recently sacked factory workers.

Rudd, a bespectacled policy wonk, learnt the value of being seen as one of the boys when his ratings soared in the 2007 election campaign after news leaked that he once had a drunken night out at a New York strip club.

Oh come on! It couldn't be all spin... Well OK.

To be filed under "Gosh! & GEE!!";

THE Rudd Government has admitted its venture into commercial property banking may end up costing taxpayers money, but says it has done all it can to minimise the risk.

A report prepared by Wayne Swan's office yesterday outlined the safeguards built into the Australian Business Investment Partnership, designed to stop firesales of commercial property.

The report, compiled in response to questions presented by The Australian, says: "The Government is aware that establishing ABIP and providing finance to the commercial property sector is not without risk.

We can start compounding this risk when we consider Swans move to guarantee the states borrowings, and the new proposed Ruddbank support for small business. 

Either Swan is a complete simpleton or the Rudd government is willing to use this opportunity to acquire private capital in a concerted move to drive our markets to socialism.

David Uren has penned an article that is a real eye opener as to just how exposed Australia is to Rudds egotistical grand plans.

In a nutshell, Australian banks are lending cash, that if defaulted in such a way that would impact on the savings invested in that bank, the government becomes liable for that default (because it guarantees the savings) and at the moment there is a potential $102.2 Billion in debt that could go wrong.

It makes one wonder how Treasury will account for it.  As far as foreign investors are concerned, they are buying Australian sovereign debt, however this spate of fund raising is not covered by the newly raised commonwealth borrowing limit of, $200 billion.

In the mid-year budget update, treasury described the guarantees as a contingent liability that was “remote and unquantifiable”.  It noted that it covered institutions that were regulated by APRA, which required that they were adequately capitalized, with appropriate risk management systems in place..

“Government expenditure would arise under the guarantee only in the unlikely event that an institution fails to meet its obligations with respect to a commitment that is subject to the guarantee and the guarantee is called upon. In this case, the Government is likely to be able to recover any such expenditure through a claim on the relevant institution.”

This approach is not good enough for the International Monetary Fund. It says that if the government is booking the revenue from selling the guarantees, it should at least be discussing how it would meet the contingency if it were called.

But now this just got worse as Wayne Swan extends the Guarantee to the States.

The Rudd "Socialist front of Australia" Government is targeting the Fat Cats and their excessive greed;  

After months of railing against excessive executive salaries, the Federal Government flagged laws giving shareholders more power to control the size of exit payments granted to executives.

The Treasurer, Wayne Swan, also charged the Productivity Commission with a nine-month, sweeping review of executive pay, meaning further limitations could be imposed next year, before the federal election.

Mr Swan said the community was "rightly offended" by excessive bonuses paid to some executives. He framed the measures as necessary to rebuilding confidence in the economy.

Hang the Capitalist Pigs!! Like that horrible woman Sue "Baby eater" Morphett, and her exorbitant $1.9 Million dollar annual salary.

They are nothing like those nice clean sportsmen, like say Tiger "Cuddly" Woods who deserve their modest appearance fees of $3 Million for a 4 day golf tournament. $1.5 Million of which is paid for by the Tax Payer. 

 TIGER Woods is coming to Melbourne in a $3 million deal - with Victorian taxpayers chipping in for half the bill.

"We are delighted Tiger Woods has chosen to come to Melbourne, further cementing our position as the major events capital of the world," he said.

Mr (Victorian Premier John) Brumby said the Woods visit would generate $19 million in economic benefits to the state, easily covering the $3 million appearance fee.

Yeah Brumby. Its not like Pacific Brands ever brought Australia any economic benefits. They didn't pay taxes, employ people, or bolster the GDP with any productivity.

By Brumbys own admission, Sue Morphetts contribution to the Australian Economy via Pacific Brands has easily covered her $1.9 Million annual salary.

Rudd and Swan are playing the politics of envy and it will backfire.

Yeah Sure, Swans setting the agenda as a key mover in the G20 Summit;

Federal Treasurer Wayne Swan says he is not sure what the G20's commitment to boost resources to the International Monetary Fund (IMF) will cost Australia.

But wayne your in the A-team, are you not?

"But I can't predict what the final arrangements will be for the IMF, but we will play our part, as we always have."

Mr Swan says it is not yet clear how much Australia will have to contribute.

"I can't put a figure on what that would mean in terms of Australia, but that may be possible as we go through to the leaders meeting in couple of weeks time," he said.

Cant they just send you the memo Wayne. Why did you have to travel all that way and increase your carbon footprint.

As much as the Age would like Rudd to be a world statesman they really should lower the tempo with which they beat on his drum;

Mr Swan is in London with Reserve Bank governor Glenn Stevens to attend the Group of 20 finance ministers meeting, where he will push for a special G20 summit in Asia to co-ordinate measures to stem fall-out from the financial crisis.

But what chance do we have to make any difference;

An embarrassing confidential paper was leaked just as the finance ministers of the 20 leading industrialised and developing nations kicked off their two-day meeting to devise an action plan to tackle the financial crisis.

Apparently, the British Government nominated a group of "high-priority states" led by the US, Japan, France and Germany.

The others, including Australia, do not warrant diplomatic lobbying.

Kevin Rudd lives in his own little world of spin.

Wayne Swan is keen to get to the G20 and talk up the Australian Regulatory systems;

Mr Swan says Australia has a lot to bring to the table.

"The experience of our regulatory system is one that is worthwhile talking about in these meetings," he said. "It certainly has done a lot better than many other countries.

"We have four of the AA-rated banks left in the world in Australia out of 11. So there are certainly some experiences that are worthwhile talking about."

He had better take Peter Costello with him to explain how it works effectively. Why? Because swan obviously has no idea, from as little ago as 5th of March 2007;

The high cost of regulation is preventing advisers from offering advice that is affordable, according to Shadow Treasurer Wayne Swan.

"Advice must be more affordable to more Australians, however, advisers are faced with the high cost of regulation making it difficult for them to offer cost effective advice," Swan said.

To address this regulatory burden, The Labor Party is looking at simplifying product disclosure statements which are required under the Financial Services Reform legislation. This would include limiting the statement to a standard four page document.

Swan would also assess the option of merging ASIC with the Australian Prudential Regulation Authority (APRA).

"We have been speaking with the industry about the possibility of merging the two regulatory bodies and are seriously considering the option of just having one regulatory body to oversee the industry," Swan said.

Swan has the Gall to take the credit of a system he wanted to tear down. His shame is boundless.