Marketing and polls dominate Governments!

Marketing and polls dominate Governments!

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With my iPad still on order – my attention this week was on the release of ‘Betrayal’ – The Underbelly of Australian Labor by Simon Benson, senior political journalist at The Daily Telegraph. Like many Aussies who are in absolute dismay at what is currently unravelling within the seams of our ailing economy, here is a book with more twists than a Rubik’s cube. Rudd broke secret pact with Iemma so as quick as a flash The Emperor denied such a thing.

More importantly, past Prime Minister Paul Keating commented in Betrayal – “When the motivation of the machinery of the Party is unfurnished as to policy purpose, it has nothing to offer than to focus on marketing and polls. After a while the public becomes aware of this and they realise that marketing and spin have no basis … That is more the rule these days than the exception.” Again another week of prolific marketing spin from both Fort Fumble and Fort Crumble – our esteemed federal and state Governments collaboratively spinning this most uncomfortable electoral seat of bad poll therapy. So here I go again, to ‘spin’ this week’s edition of Virtual Realty News.

Heaven forbid – How Sydney’s iconic Opera House is at risk of ‘financial tragedy’ a damning internal report has revealed , that unless urgent action is taken, the Opera House will have to close. “In April last year Prime Minister Kevin Rudd hit the roof after The Daily Telegraph revealed former Premier Nathan Rees planned a $900 million rebuild.” Sydney Opera House has been lobbying Fort Crumble for ten years so in next week’s State Budget $130m to save Sydney Opera House from closure. Maybe our mining companies can save our Opera House. After all, they are expected to save everything else in Australia. As for the State, it is stone motherless broke – absolutely devoid of imagination and concept. Marketing and polls won’t save it.

operahouse

BUY PRINT

Frustrating when you see that Fort Crumble wasted $500 million when it axed the failed CBD Metro proposal and it’s all about to get worse. Second harbour crossing – or chaos where a team headed by the state’s former rail and roads chief, Ron Christie, identified that without a second rail link across the harbour, the CityRail system will face paralysis by 2022. I thought we were already there which may explain why Fort Crumble is using marketing and polls in an effort to change its identity.

Fort Crumble is fast becoming Fort Chaos – mates race: $45 m deal snares MP as the V8 Supercars race will now cost taxpayers at least $10 million more over the next five years – the budget was $35 million. So when all else fails what does the government do? Labor shuts off access to secrets the Ombudsman, Bruce Barbour, is seeking to change a nine-word loophole where access to documents has previously, been refused. The cost of hosting World Youth Day came in $64 million over budget yet, $50 million was pledged this week, to keep the rugby league grand final in Sydney. This was $20 million more than Queensland was prepared to pay. Little wonder senior Fort Crumble ministers joke that Labor should re-name itself “the Keneally Party”, as it is now politics without a whiff of Labor just another example of marketing and polls.

The Reserve Bank of Australia (RBA) met this week to spin the cash rate where house prices ‘out of whack, set for slump’. A comment from abroad where the International Monetary Fund voiced its concerns on house price values compared to average incomes. Possibly too much time was spent reading two American dreams shatter although Australian property markets are witnessing households pull back spending as rates rise. Yes – a chill wind through house prices which prompted the RBA to place rates on hold.

Interesting to note that when property markets are booming, buyers adopt an aggressive pattern of behaviour and yet when property markets cool, become passive. I’ve been doing this gig for twenty five years now – currently I am selling the first home I ever sold in 1986 for $285,000. 43 Rangers Road Cremorne can now be purchased for around $2,250,000. So are you better off buying in an aggressive or a passive market? I suggest the latter. Here is an interesting graph courtesy of RP Data that I found this week. It amazed me, considering we are more a private treaty real estate model compared to public auction. In 2010 – 80.4 per cent of public auctions were conducted in Victoria and NSW. This will become an interesting topic in weeks to come.

Proportion of cap city auctions small

For the month of June, the RBA left rates on hold prompting Treasurer Wayne Swan to make this comment: “This news will be a welcome relief for many Australian families and businesses around the country, who are of course doing it tough.” Again, this would be marketing and polls.

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Wayne Swan again “Tomorrow we have the national accounts, and I have every confidence that with the right policies in place, our economy can continue to be one of the best in the world over coming years… From our perspective on this side of the house, we will do everything to reform our economy, to build economic capacity, to keep pressure off inflation so we can grow sustainably.” Wayne, please allow me to explain a few basic economic fundamentals that escape you.

When Swan released his Budget 2010/11 – he announced that it was hedged on a consumer price inflation of 2.5 per cent, even though the RBA recorded a March 2009/10 rate of 2.9 per cent. In Virtual Realty News I suggested that inflation would be at 4.5 per cent by June 2010 and your 25 per cent increase for cigarettes tax slug would further ignite inflation. So what happened? Cigarette tax sparks inflation jump where prices increased by 3.7 per cent in the year to May, up from the 2.9 per cent annual pace in April according to the TD Securities – Melbourne Institute Monthly Inflation gauge. Given the RBA has an inflation comfort zone between 2.00 – 3.00 per cent, let me adjust my inflation prediction to 5.00 per cent by June (this month). Petrol prices up, rents up, vegetables and electricity always increase over winter – spin, marketing and polls.

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Taxpayers fund Swan’s ad blitz where the mining tax sets nerves on edge as the big miners gave Rudd the fight he was looking for just that taxpayers never expected another back flip where they foot the bill on a tax that is yet to be passed,despite a $40 million advertising campaign approval. Although Rudd treats us like mugs with latest backslide on government ads. On The 7.30 Report Swan defends mining tax ads and the smaller miners reject Kev’s idea of help. Head of Infrastructure Australia offered this advice restart tax plan: Kevin Rudd’s man Rod Eddington as too did Alan Kohler The government’s RSPT spin is a disgrace. Then the first of many announcements as the tools go down Xstrata suspends development spending two projects over super tax and that, as The Emperor described earlier , is neither “bunkum” nor “balderdash”.

My iPad is yet to arrive so I keep reading Betrayal, so can marketing save PM? Absolutely no chance as the Mad Monk enunciates from his soap – box keep fighting Rudd and super – profits tax. Don’t pay too much attention to the March GPD figures. The June GDP will paint an entirely different position. Europe debt situation serious – Treasury which is a burning issue as too – home insulation inspections yet to begin. Kurraba Point declared a new suburb and ASIC give up on the Offset Alpine mystery.

The stand–off between The Emperor and Australia’s mining companies is a compelling visual. My tip: the mining companies will smash Fort Fumble. Why? Simply because nobody at Fort Fumble has ever run a business before. So how does one turn a big business into a small business? That would come down to marketing and polls. Australia would be better off if it had invested our $38.500 million in BHP and Rio Tinto shares.

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

11 Responses to “Marketing and polls dominate Governments!”

  • […] This post was mentioned on Twitter by Robert Simeon, Julia GilardMP. Julia GilardMP said: RT @ozspecialagent: Sydney real estate blog – Marketing and polls dominate Governments! http://tinyurl.com/25jc9zn #realestate #property […]

  • David Hunt says:

    A web page full of interesting comments ! Look forward to seeing more including more on state issues !

    I would be interested on your views on the state of Sydney’s hospitals. Whilst like many I am sure you have heard of the Federal “takeover”, I am wondering what the future is for Hornsby Hospital. There is also the “missing” Northern Beaches hospital, not to mention Manly Hospital.

    It seems the people of Sydney are being let down left right and centre !

    Anyone care to comment !

  • David,

    If the home insulation, building education revolution, RSPT, new child care centres are anything to go by the federal takeover of our hospitals will be an absolute catastrophe. They don’t appear to have the ability to get anything right.

  • Re the current state of the State’s hospitals. I took my son to Mona Vale Hospital this morning for an Occupational Therapy assessment. In the room I was surprised to see there was butcher’s paper stuck to the windows with sticky-tape. This is to block the sun when it shines through the windows. They have to do this because there aren’t any blinds.

    With conditions so dire, I suppose the poor staff had to provide this butcher’s paper and the sticky-tape for themselves.

    It would be interesting to compare work place conditions at MVDH with conditions at NSW Parliament. Perhaps a week of ‘swapsies’ is long overdue.

  • Ann says:

    Interesting comments from Environment Minister Peter Garrett yesterday. He is in cabinet and was not informed of the ETS backflip, and read about it in the newspaper. This is gobsmacking, and shows just how Dictator KRUDD is running the country. His reported gang of 4 (Gillard, Swan, Tanner and himself) is a pretty poor and inexperienced brains trust.

    Banana Replublic Round 2

  • Gordon says:

    Robert, you’re a bit hard on the Fort Fumblers when you say they have never run a business.

    After all, most of them have come from the unions, and the ACTU has been involved in running quite a few businesses over the years.

    Unfortunately, it seems that most of their enterprises went broke, perhaps because they kept on spending money that they didn’t have.

  • Gordon, I stand corrected 🙂 Maybe I should say that they run businesses using OPM’s (other peoples monies) and never their own 🙂

    In a perfect governmental system the governments would be restricted from gouging public funds where gouging rates significantly reduce as debt levels increase. The same practice applies in business and that works well – if we don’t have the money we don’t spend it. Whereas in government if they don’t have the monies they still spend it!

  • Snow White says:

    Robert and the other RWM VRN subscribers,

    Lets quit what we are all doing now and setup up KRUDD MINING NL.

    Here is the business plan. (admission and disclosure – taken form another blog poster)

    I have no clue about mining, but that doesn’t matter any more. Here is the business plan:

    First we ask a big miner like BHP where’s a site they wasted money on, we’ll take it off their hands. Then we purchase a whole lot of generic capital equipment from Boom etc, transportable stuff like cranes and trucks. The trick is to ensure capex is more than 87 per cent of total expenditure (you’ll see why, below). We dig some dirty big holes in the ground for a while, belch lots of smoke, make it look good, before declaring the project a failure.

    Then we get to the good part. We now have a tax credit for 40 per cent of the capital equipment costs, so we sell the capital equipment second-hand to other miners (those which actually dig up minerals) for 70 per cent if its new price. We sell what’s left of the project — that is, a 40 per cent tax credit for all other losses on wages and exploration — to the big miner at 80 per cent of face value (i.e. 32 per cent of our non capital equipment costs). The big miner can use it to offset RSPT on other projects. As long as our capex is more than 87 per cent of the total, the 10 per cent profit on equipment will exceed the 68 per cent loss on exploration and wages, and believe it or not we come out ahead. The cost ratios are unrealistic but that doesn’t matter, since it’s not expected to actually produce any minerals.

    Of course there’s a small chance of hitting paydirt, a really good deposit of something valuable — these things happen. In which case, change of plan, we sell the whole project to the big miners for a simple profit, since we actually have no idea of how to produce minerals from the ground, and then go looking for somewhere else to fail more successfully.

  • Gordon says:

    Sounds good, Snow White, and the seven dwarfs would be good operators in the mines.

    There might be just one problem, though. The clever scheme you outline won’t be in place during this parliament, and so the goodies would probably get withdrawn just as we were ready to claim them.

    It’s called sovereign risk – just ask any mining person at the moment.

  • If Fort Fumble – ran a mine they in all probability would electrocute themselves!

    I’m just reading through the Fudge-it 2010/11 – and can’t believe the Stamp Duty concession for a new apartment. I guess nobody told them that NSW has stopped building so nobody would qualify! One way, of saving money I guess 🙂

  • Snow White says:

    Interesting hearing David Marr’s interview on KRUDD’s personality and way of doing business on Monday night, following what he called the Chinese in Copenhagen.

    Interesting comments on Crikey as well

    Aggressive Narcissism includes the following traits:

    • Glibness/superficial charm
    • Grandiose sense of self-worth
    • Pathological lying
    • Cunning/manipulative
    • Lack of remorse or guilt
    • Shallow affect
    • Callous/lack of empathy
    • Failure to accept responsibility for own actions.

    (from http://en.wikipedia.org/wiki/Narcissism)

    Doesn’t this describe Kevin Rudd to a tee?

    “Pride goes before the fall…”

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