Fort Fumble over correcting – Fort Crumble disconnecting!!

Fort Fumble over correcting – Fort Crumble disconnecting!!

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Political correctness is out the window too. With more back flips than a Russian gymnast, degrees of difficulty can escalate in an election year (if off balance) and coupled with poor execution, can result in a lack of balance. It’s all very well to talk-up the routine before the execution, but we all know that Fort Fumble (Federal Government) resembles a modern day pin ball machine that constantly hits  tilt and freezes as a result of overzealous activities. In a nutshell:  You pour money in, only to see the machine (otherwise known as an economy) correct your aggressive behaviour!

The Emperor’s (Kevin Rudd) Achilles heel today, amounts to nothing more than activity freeze. More concerning is that the back flips are not supported with answers pertaining to the original decision -making processes. The Emperor today, is taking plenty of steps back and very few steps forward. The wind has left his sails. Too much, too fast, results in chaos!

Somewhat ironic following the global financial crisis (GFC) that the government of the day keeps back flipping with an abundance of poor policy execution, that does not promote business confidence. Ironic, in the sense that these, either deferred or cancelled policies, now equate to increased unemployment.  It is said that “a picture is worth a thousand words” so this week’s picture is dedicated to the failed economic policies and chartered courses of Fort Fumble and Fort Crumble.

strongbreeze

BUY PRINT

Our Virtual Realty News research department (me) is always looking to give subscribers relevant and interesting data and we found just the thing  – IOU AUSTRALIA. The website says “Dedicated to delivering accurate information based on Australia’s debt situation in a real time snapshot. Numbers are based on public information, and are adjusted to reflect the information given out by various organisations time to time. Figures represent our nation’s financial health, and the debt we may leave for our children and future generations.”

Again, Fort Fumble and Fort Crumble lead the way – this is scary, have a look at Debt Clock Australia. I will try to obtain the relevant data and what the figures resembled when The Emperor took over the throne. Tony Abbott’s razor plan to pay off our debts is a good start given spiralling government costs add to deficit pressure as MPs fear Kevin Rudd is losing control.

Not as bad as Greece which today, has an estimated $430 billion, Sea of Debt – although one must remember that once upon a time its debt too, was just a fraction of what it is today. Greece has a deadline of May 19 to pay down its debt and the odds of doing so are looking like 430 billion to one. Greek debt fears rock US, European stock markets and the banks must not let Greece fall.

Sydney, you are the weakest link: survey and the latest quarterly Access Economics business outlook report, tips NSW to underperform again, during this next mining boom as interest rates, push up the Australian dollar and harm manufacturers and tourism operators in NSW. State is paying double for land Fort Crumble is paying up to double for land as part of a $250 million property buy–up for public housing.

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Premier Keneally less popular than Barry Unsworth identified that if an election had been held in NSW last weekend, the Labor government would have been slaughtered. Charlie Aitken wrote on his Under The Southern Cross this week, “I did a bit of driving over the Anzac Day long weekend and sometimes you just have to wonder where your tax dollars go. How, for example, can the F3 Freeway north of Sydney, that basically is the gateway to Australia’s fastest population growth corridor, end at a roundabout?” Hypothetically, if another election was run this weekend the results would have been worse Melbourne set to overtake as biggest metropolis a 10 – year fall in the percentage of migrants settling in NSW and the lowest rate of economic growth of all mainland states has Melbourne on track to overtake Sydney as Australia’s biggest city.

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With the First Home Buyers Grant (FHBG) you can artificially stimulate property markets, but the same can’t be said for Australian financial cash markets. Recently, I have been speaking with some of Australia’s greatest financial minds and some are predicting inflation hitting north of 10 per cent. The Real Estate Institute of Australia (REIA) issued this week an alarming media release – Caution required on interest rates otherwise known as an economic storm warning.  The reason why?

Alcohol and cigarettes went up +3.5 per cent at midnight last night The Emperor added another 25 per cent increase to cigarettes that will drive interest rates up further– nice one Kev! An ongoing economic failed strategy that now has him called Captain Chaos or the Prime Minister for No Economic Idea! Frustrated that nobody has picked up on the fact that a 25 per cent increase on the price of cigarettes, will drive interest rates higher and higher – even if you don’t smoke!

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Inflation jump drives rate rise prospect given inflation rose in the March quarter more than expected. Inflation rose 0.9 per cent which equates to a rise of 2.9 per cent in the year to March, according to the Australian Bureau of Statistics. Housing is the major culprit which increased by 6.1 per cent due to increases in electricity (+18.2 %), sewerage ( +14.0 %), rents (+4.6 %), house purchase ( +4.1 %) – the major DNA for these increases lies with state governments that keep driving  these utilities up and they (as well as inflation) won’t be going down!

Throw in housing shortfall locking out thousands where Australia has 178,000 more potential home buyers than available properties, with Queensland and Western Australia accounting for almost half the total shortfall over the past decade according to the National Housing Supply Council. On present trends, the total gap will reach 640,000 by 2029. Such shortfalls are a guarantee that home prices will continue to rise as too, will rents. Here is a crucial graph that will now feature prominently, in future editions of Virtual Realty News.

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Pay particular attention to the quarters of March and June 2007/2008 and September 2008/2009 pre global financial crisis – the greatest clue as to where the cash rate is headed. It certainly does not help when Fort Fumble is considered to be in total chaos over policy. Only Health remains. Ironic that inflation looks like exploding and our Federal Government is showing signs of imploding despite an election looming.

To make matters worse Kevin Rudd’s great ETS fraud found out – Andrew Bolt and “the greatest moral challenge of our age” decision to put climate action on hold smacks of political cowardice.

For mine: Paul Kelly from The Australian filed the most compelling read Rudd’s dangerous climate retreat. “As retreats go, they come no bigger than Kevin Rudd’s delaying of his once cherished emissions trading scheme – one of the most spectacular backdowns by a prime minister in decades.” Not a case of stand and deliver, rather ‘The Emperor running to them hills’. Then we have this pearler Department of Hot Air costing $90 million where the 400 public servants employed in the Climate Change Department will remain employed despite no work until 2013.

Check roof insulation before buying a home: Archicentre the building advisory group advised that vendors are not legally required to reveal if the home they are selling has been part of the Federal government’s scrapped home insulation scheme. Fort Fumble’s $2.450 billion home insulation scheme has been linked to four deaths and more than 120 house fires.

The much awaited Henry Tax Review will be released this Sunday and one could not rule out yet another Fort Fumble back flip.

Also, next week we will be revealing a real estate individual website first when we announce which company will be advertising its product on our website – property pages and daily email alerts?

Clues will be left on our blog –  banking or media? Maybe a property portal, newspaper group, or search engine?

Whatever, the case they want the thousands and thousands of eyeballs that RWM attract each and every week. Clue one – their business model loves bricks and mortar?

Cheers ^__^

This week’s sales Mosman real estate, Beauty Point real estate, Clifton Gardens real estate, Balmoral real estate, Cremorne real estate, Cremorne Point real estate, Neutral Bay real estate, Cammeray real estate Click Here

9 Responses to “Fort Fumble over correcting – Fort Crumble disconnecting!!”

  • jenny kelly says:

    Hi Robert
    Housing Affordability

    In the recent discussion on housing affordability most commentators have missed the obvious –the imposition of taxes and duties on development by federal and state governments vastly increase the cost of development and impact adversely on housing affordability.
    I have watched with interest a recent local development (and these are just rough figures-rates of duty etc will vary from state to state etc – however they give an indication of the size of the issue here)

    Cost of land 2.9 million dollars (stamp duty say 5% paid $145,000)
    Cost of build about 2.8 million dollars (Plus GST on products and services @10% say $280,000)
    Cost of Sale of redeveloped properties $6 million dollars (say 5% stamp duty paid by end purchasers-$300,000)
    This doesn’t take account of other government charges e.g. local council, utilities etc levies or other add on charges and taxes say $25,000
    A whopping $750,000 windfall to various levels of government
    I expect commentators on this post will rail against the development of ”luxury builds” however the point remains the same whatever the style of build.
    If the federal government is serious about tackling housing affordability –it has to look at bringing the states and all other levels of government in line in relation to stamp duties, levies and other government charges
    which act as a serious disincentive to developers and have a largely unrecognised impact on housing affordability.

    J Kelly

  • Ann says:

    You just have to shake your head in disbelief at KRUDDS “leadership”. I am sure they will be re-elected based on history, and then he reads that as a mandate for his flip flop, knee jerk, nerdy decision making. God Help Us.

    Dont start me on NSW, KK maybe the best premier in a decade (no competition), but gee she is surrounded by genuine no hopers.

  • The Tim Mooney image of chaos on the Harbour is a fantastic visual analogy of our Emperor’s panic stricken mind, I loved it. Dennis Shanahan should have used it in his article in The Australian. Nice one Tim!
    I’d like a job in the Climate Change Department!

  • Tim Mooney says:

    Thanks Andrew. This image is from my library and I remember taking it as an unusual nor-west buster (we are more familiar with the southerly buster in Sydney) ripped thru the starting line of Wednesday afternoon racing off Point Piper. It went from a light zephyr to a 40 knot gust in less than a minute. Beware … the same thing is happening in Canberra … only no one down there can read the breeze … neither strength or direction.

  • Gordon says:

    A couple more points about our Dear Leaders:

    Fort Fumble are kite-flying changes to wine tax “in the interests of public health”. The real interests are not hard to find – the mooted tax changes will put most small and medium wineries out of business, leaving the field to the corporates with their unionised workforces. Wonder who will be the beneficiary of the unions’ political donations?

    And Fort Crumbled has hundreds of redundant but still employed and well paid public servants with little to do. FC can’t terminate their employment because it seems the Sussex Street Soviet won’t allow the govt to dismiss anybody, even when there is no work for them.

  • Cathryn L says:

    Robert,

    Brilliant read as usual. I love how you week in week out manage to articulate the trials and tribulations of our constant political policy embarrassements. Your explanations are a credit to you – you get my vote.

  • Ann says:

    Yes Robert, you need to run for Federal Politics and quickly

  • Ann says:

    Loved Ken Henry’s body language yesterday. Looks out of sorts, and walks out before the journalists could ask question. Picture tells 1,000 words.

  • Ann says:

    Robert,

    Only 18 hours to wait for this weeks installment of VRN. I can picture you composing it now, ready to unleash on the incompetentce that “we” voted for.

    Not sure how our politicians and spin doctors get to sleep at night with the misery they are and will be bringing to Australia.

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