Saturday 19 September 2015

Why does Australia have a new PM?

http://www.theaustralian.com.au/national-affairs/polling
The Newspoll data shows 30 consecutive polls where Labour would have won election, hence Coalition changed Prime Minister to Malcolm Turnbull.





Malcolm Turnbull is the fifth leader in eight years after Prime Minister Tony Abbott on Monday was challenged by his popular communications minister after months of speculation and poor showings in opinion polls. Abbott was the shortest reigning first-term prime minister to be overthrown. 

We now have two prime ministers overthrown in their first terms, which hasn't happened since World War Two. 

Why do we see such turmoil in Australia? It's the economy, stupid!

Australia’s decades-long commodity boom dies in the embers of China’s “new normal” economy, and quarterly GDP growth slows to an anemic 0.2%, Australia is facing nothing short of a crisis.

“It is clear enough that the government is not successful in providing the economic leadership that we need,” Turnbull said on Monday afternoon, announcing the spill to the media. 

Over the last 20 years, China has been viewed as the growth engine of the world, and justifiably so. With annual growth rates between 8% to 15%, China’s economy was literally eating every rock, stalk and barrel of practically every commodity in the world.
And naturally, any country or company that produced these commodities made a tonne of money – including Australia.
Today, China’s growth rate has slowed to about 3% which is a dramatic slow down compared to what it achieved in the past. This slowdown and China’s effort to even maintain these rates, will have significant repercussions around the world.
And the first up to bear the brunt of this slowdown is its closest supplier of raw materials – Australia.
With dark clouds on the economic horizon, the Australian government and central bank is doing everything possible to prevent the unpreventable recession.
Interest rates have been reduced to all-time historical lows, meanwhile the Australian Dollar has plummeted -25% over the last year. Yet – the negative outlook has not improved.
Australia’s lack of savings during the boom years has left the nation in a precarious position, especially now China – which has been Australia’s largest export market is fast running our of steam. 
Malcolm Turnbull is facing an economic horror show that will be a challenge even for a former managing director of Goldman Sachs Australia.

The large global debt crisis is causing economic problems for governments all around the world, they have borrowed too much money and the weight of these debts are choking economic growth. And to make matters worse – these very same governments and their central banks have implemented various plans that have only made matters worse. Deleveraging of an economy is painful no matter who is Prime Minister.

Update 22/09/2015 - Immediately polls improved for Coalition - No policy change:


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