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Wednesday, 10 October 2012


SWINBURNE HAS MADE A HUGE ERROR OF JUDGEMENT in my opinion by reducing the expenditure in the services sector at LILYDALE where the electronic media cannot work to train people with hands-on skills.

They are only thinking inside their own survival mode and not the reality that less buildings will be needed in Hawthorn in the future when the theory and mathematics subjects will be able to be taught via webnars in online learning classes which is already happening now and even Melbourne Uni has embraced that medium joining many overseas organisations.

If Swinburne management were really planning for the future...they have got it totally wrong. The State Government has seen the future and cut funding accordingly, but Swinburne have chosen to keep the empire growing in Hawthorn when in reality less resources will be needed at that location and only time will prove the government and me right.


Imagine another another financial meltdown and all the Local Govt Super funds are lost. My question is how much will our ratepayers be up for AGAIN to cover the total loss? Does anyone know?

Dont dismiss this possibility as this scenario is very likely in the current economic climate. In such event locals will ALSO need to chip in extra for the State Govt Super Fund AGAIN and how much extra tax will have to be raised to replace those funds.

Both Super Funds have lost substantial $billions on several occassions and ratepayers and taxpayers have had to chip in to replace those losses... its just that people forget history. I don't forget because i was involved in institutional investment in the money markets when under the Whitlam Govt interest rates rose to banks paying up to 26%pa for 4 years and as a consequence reduced the face value of bonds and other assets substantially..

The Govt Super funds were set up by acturial 'experts' giving assurances that using 'professional' investment managers the super funds would earn enough to be self funding...however the reality has been the opposite on several occassions.

This is why I am totally against the concept of superannuation being worth anything of true value for this country except for those feeding off it.

Even the Industry Super Funds are attempting to gain an advantage by meddling in the partial involvement of the Australian economic management which is the role of the Reserve Bank and the Federal Government. IMO this philosophy will fail to do justice for their members security over the life of the funds no matter how clever they think they are or how good their advertising implies the reverse.

But as far as Local, State and Federal Superfunds are concerned .... most ratepayers and taxpayers would be staggered as to the contingent liabiility overhanging ALL taxpayers which are not quantified because the liability numbers have been transfered to be only relevent to the Super Fund bodies, yet are very relevent as we taxpayers are ultimately responsible. So I ask the question AGAIN?

HOW MUCH would our ratepayers need to raise AGAIN, if ALL the Super Funds were lost by the next economic meltdown, which would also substantially reduce the ability of most ratepayers to find the money to pay.

So if the Landowners and new Candidates can understand that set of numbers, then they might realise how super protected and expensive each extra hour of each government employed person is as a local government employee and why how important it is to economise and reduce staffing levels and or convert as many full time employees to contract staff.

I challenge anyone to prove me wrong?

Also published in COLDSTREAM 3770 blog this morning.

Monday, 1 October 2012


Media Release

Date2 October 2012
EmbargoFor Immediate Release

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 3.25 per cent, effective 3 October 2012.
The outlook for growth in the world economy has softened over recent months, with estimates for global GDP being edged down, and risks to the outlook still seen to be on the downside. Economic activity in Europe is contracting, while growth in the United States remains modest. Growth in China has also slowed, and uncertainty about near-term prospects is greater than it was some months ago. Around Asia generally, growth is being dampened by the more moderate Chinese expansion and the weakness in Europe.
Key commodity prices for Australia remain significantly lower than earlier in the year, even though some have regained some ground in recent weeks. The terms of trade have declined by over 10 per cent since the peak last year and will probably decline further, though they are likely to remain historically high.
Financial markets have responded positively over the past few months to signs of progress in addressing Europe's financial problems, but expectations for further progress remain high. Low appetite for risk has seen long-term interest rates faced by highly rated sovereigns, including Australia, remain at exceptionally low levels. Nonetheless, capital markets remain open to corporations and well-rated banks, and Australian banks have had no difficulty accessing funding, including on an unsecured basis. Share markets have generally risen over recent months.
In Australia, most indicators available for this meeting suggest that growth has been running close to trend, led by very large increases in capital spending in the resources sector. Consumption growth was quite firm in the first half of 2012, though some of that strength was temporary. Investment in dwellings has remained subdued, though there have been some tentative signs of improvement, while non-residential building investment has also remained weak. Looking ahead, the peak in resource investment is likely to occur next year, and may be at a lower level than earlier expected. As this peak approaches it will be important that the forecast strengthening in some other components of demand starts to occur.
Labour market data have shown moderate employment growth and the rate of unemployment has thus far remained low. The Bank's assessment, though, is that the labour market has generally softened somewhat in recent months. 
Inflation has been low, with underlying measures near 2 per cent over the year to June, and headline CPI inflation lower than that. The introduction of the carbon price is affecting consumer prices in the current quarter, and this will continue over the next couple of quarters. Moderate labour market conditions should work to contain pressure on labour costs in sectors other than those directly affected by the current strength in resources. This and some continuing improvement in productivity performance will be needed to keep inflation low as the effects of the earlier exchange rate appreciation wane. The Bank's assessment remains, at this point, that inflation will be consistent with the target over the next one to two years.
Interest rates for borrowers have for some months been a little below their medium-term averages. There are tentative signs of this starting to have some of the expected effects, though the impact of monetary policy changes takes some time to work through the economy. However, credit growth has softened of late and the exchange rate has remained higher than might have been expected, given the observed decline in export prices and the weaker global outlook.
At today's meeting, the Board judged that, on the back of international developments, the growth outlook for next year looked a little weaker, while inflation was expected to be consistent with the target. The Board therefore decided that it was appropriate for the stance of monetary policy to be a little more accommodative.