7 Sept 2015

Thanks Joe and Tony,for the recession your about to give us, because when it comes, it belongs to you two boys!

Our beloved treasurer and our esteemed Leader have created an Australian IED. It doesn't go bang, this is a slow motion version. 
'Its was called a Car Industry'
Taken from an article by Ian Porter
The Abbott government seems to be unaware of the calamity that is quickly approaching. It is going to be a body blow, not just to unemployment levels and welfare payments, but also to manufacturing output due to the loss of $29 billion in local value-adding. In addition, the trade deficit will expand because a further 150,000 vehicles will have to be imported to meet demand – and Australia will also lose the benefit of Toyota's annual export of 90,000 vehicles to the Middle East.

Add to that the elimination of the car industry's capital expenditures, which were running at a reduced $1 billion a year after the Global Financial Crisis.

Contrary to popular belief, GM and Toyota were well advanced on planning for new models that would have been exportable. Hockey's 2014-15 budget papers showed the car industry was proposing to invest $3.8 billion in new models over the four-year cycle.

Then there is the 200,000 people that will hit the dole queue soon after next year's federal election, that will seal Australia's fate. When those people lose their spending power and start drawing on the public purse, there will be a sting and it could be a recession. Unless something is done in the meantime, it's just a question of how deep, and for how long.

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