Budget 09 – National kill off superannuation, plant mass prison riot seeds and do nothing to prepare for the coming economic depression

Now, we here at Tumeke have been pointing out for sometime that the coming global depression, (spawned from corrupt corporate America lending scams that saw complicated financial equations that not even former Fed chief Alan Greenspan could understand used to grant people money they never could pay back by pretending the property they were buying would increase in value by 6-9% forever and ever and ever), will be much worse than the current Government is admitting or prepared for, and this budget is proof of that.

Just enough to keep the very same people who AAA+ rated Corporate America before it collapsed from down grading us, this budget really shows National are screwed. The depression in front of us, as spelt out in the worst case scenario Treasury attached to the budget…

Unemployment will swell - Treasury
The main forecast assumed some growth would begin to flow through in the 2009 December quarter, but Treasury warned if New Zealand's trading partners showed ongoing weaker growth, New Zealand's economy could continue to decline through 2010 and push unemployment up to 10 percent.

"Higher unemployment would lead to more mortgagee sales and lower demand for houses with housing prices falling further than in the main forecast," Treasury said.

Under the mid-range forecast house prices would fall by 20.4 percent in real terms from their peak in 2007.

…is so extreme that National don’t know if their normal right wing slash and burn routine will actually lead to something much worse. While they hold onto Labour’s entitlements that many NZers are budgeting with on a week to week basis, they are robbing Labour’s future entitlements by effectively killing off superannuation in NZ. Those fucking babyboomers once again manage to rob Generation X, because as Bernard Hickey points out, 10 years of no money into that fund will start to show up short by 2025.

Tax cuts being dumped is no surprise, but then again National knew they couldn’t manage those tax cuts when they promised them to NZers, welcome back to the bad old days when Politicians simply lied to get elected, how does that change feel hu folks?

One of the worst parts of this budget though was the absolute mis-step National have taken to double bunk 5 more prisons even though they agreed they had to build a new prison to keep up with their medieval hard line law and order nonsense…


Budget 09: New jail plan goes as Govt opts for two inmates a cell
The National Government has scrapped building a new prison and will gamble on ramming inmates into existing space with double-bunking to deal with bulging numbers. The Budget put $385.4 million towards double-bunking in five prisons, creating cell space for 1000 more inmates. There was no funding for the new prison that National had maintained until yesterday would be required under its law and order regime.

…let’s be very clear, if you think the dehumanized prisoners coming out of prison and exploding in society are a problem now, they are nothing compared to the damaged individuals double bunking are about to create. National have doomed all those who they are increasingly wanting to throw inside prison to merely repeat the violence they are about to undergo themselves, double bunking is a fucking nightmare and the abuse it fosters will be repaid to an unwitting society the minute the rats are let out of their cages. What an abomination in the making National have seeded, my guess will be mass prison riots the likes we’ve never seen here.

What to do for National? Economic times demand a social welfare state from a Political Party that hates that concept and while National try to tightrope it’s agenda with no real vision forward, the extremist right wingers amongst their fold will start to demand radical free market solutions, the question we at Tumeke have always asked is can John Key resist that while the country sinks further and further into depression?