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.


  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…