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22 December 2011
Letters Editor,
Canberra Times
Australia
Canberra Times reported Paul Keating as stating 'Labor has lost its story' (Labor has 'lost
its story', but Keating not lost for words, CT, Maris Beck 07 November 2011). I presume the story
Paul likes told is Wayne Swan's of last Tuesday of how he (Paul Keating) "transformed
our economy"? I have to agree that he has. It needs to be told, just what those changes
are, and what they have achieved.
In 1983, Paul gave us the floating exchange rate system that is designed to isolate a
nation’s money supply. This denied Australia the capacity to add to its money supply,
national savings, in the form of foreign reserves earned from international trade. Paul
followed this up with deregulation of the banks. This allowed Australia to consume
more than it produced.
Thanks to those initiatives of Paul's, Australia has since then, accumulated a massive
current account deficit, a corresponding growth in debt that Australians owe to banks,
and incurred the loss of many productive domestic industries and their associated jobs.
These trends continue today as Paul's legacy to Australia. They do not constitute 'sound
fundamentals'. However, the fact that average real wages went backward and took
nineteen years to recover is an especially strange part of the story for a Labor man to
want told.
I can understand why that story was lost. Many Labor party people would not want to
own up to it! The RBA doesn't have to look to Europe for problems. Thanks to Paul,
they’re here!
Regards
John Griffiths
For more information see : Naked Monetarists & Pear-shaped Economies
http://www.davidbrown1801nsw.info/nakedmonetarist.htm
Gestiefeltbote
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