Links May 11: Budget warfare

  • Up: energygoldgrainsAussie
  • Down: $US
  • QE forever! Bloomberg
  • Commodity financialisers get whacked. Matthew Lynn
  • CME hikes margin requirements for oil. MarketWatch
  • Germany gives in to Greece. Bloomberg Surprise! Not.
  • 60 billion more for Greece. FT
  • Bahrain bulldozes Shia. McClatchy (h/t Naked Cap)
  • Gaddafi gasping for gas. FT
  • US housing crashing at 18% per annum. Calculated Risk
  • China surplus is back ! The Oz
  • The Budget was a clear non-event, as DE makes clear this morning. That of course that won’t stop the hysteria. Without further ado, here is your Budget Opera.

The Fairfax papers have opted for saturation bombing:

Murdoch papers have opted for targeted but toxic chemical warfare:

Finally, the boys at Business Hysteria have gone for a full biological assault:

No Budget austerity for the media! I suppose I’m biased, but I reckon the three paragraphs at the end of Delusional Economics’ post is by far the most incisive analysis in the land this morning.

David Llewellyn-Smith
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  1. Meanwhile Adam Carr is, er, interesting…

    In the process, they are trying to fan old ‘class-war’ style resentments which shows the depths to which they have fallen, although Labor’s definition of rich is interesting (families on combined income of $150k).

    …some of the measures were truly gobsmackingly stupid – effectively anti-family (restricting family payments), harmful to the health industry (cancelling the private health rebate for some) and ultimately inflationary (education).

    It seems Adam is a supporter of middle class welfare, and against education and training. I mean, where was Swanny supposed to cut if not middle class welfare?

    Carr wants big cuts, but God forbid anyone earning over $150K should make any sacrifices! I didn’t think it was possible for my opinion of Adam to go any lower, but this takes the cake!

    • Probably because Carr earns around 150-200K he’s pissed?

      None of the measures were “stupid” – they were enacted because it helps Labor win votes – which is the raison de etre of democratic process.

      Cuts to middle class welfare? I think the average family came out of this budget better off, particularly those with children (or semi-children over 21)

      His shallow analysis (anti family/harmful health etc) is clearly linear economic thinking – there’s more to it than saying a tax cut here is good, an increase in spending is bad.

  2. I dont get it, all this faux anger at the 150k ‘middle income welfare gouge’…

    It doesnt matter what your family earns if you still borrow up to your eyeballs. I can earn a million bucks a year, but if my mortgage is 8 or 10 then the story is the same.

    Why should people be given tax cuts, and other welfare if they are clearly irresponsible, at the expense of those that are clearly doing – and will continue to do, it much harder?

    If I hear “there’s nothing in it for me” again i might just go postal…