Rudd was poorly advised to throw money at voters in an attempt to ameliorate negative reaction to the recession. The economic down turn has a long way to run yet. It is the result of significant structural weakness in the global economy. The cause of which has not been addressed. The full impact has yet to register on Australia. Rudd’s measures amount to short term gain for long term pain. Neither he nor his advisers have a clue as to what awaits down the track, yet they have committed all our reserves and significant borrowings.
This policy is fear and populist driven. Paradoxically it is high risk. Yet it has been entered into lightly and for political reasons. It will come to haunt him. His nervous response has ensured that the future stakes for Australia are high.
The ideological battle within Treasury over Rudd’s populist approach to the economy has unexpectedly blown out with Treasury official Godwin Grech at the centre of a political storm caused by an attempt to nail the Treasurer, Wayne Swan and damage the re-election prospects of Kevin Rudd.
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Rudd has been running the country like a poorly run embassy. Endless requests for briefings, an over flowing in-tray and decisions delayed.
The post Fitzgibbon reshuffle forced Rudd to promote strong characters who have the capacity to overshadow him. Rudd is tarnished by the nonsense of the past weeks and will be diminished by the proximity of Ministers who are less petty and self absorbed, and it should be said, more capable and courageous.
Turnbull on the other hand, if he is to have a chance at the next election, must rid himself of his troglodyte right. He must take his party to the centre, where he will perform at his best.
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