China - Xi Jinping, 'princeling' new leader WITH a revolutionary hero for a father and a pop star for a wife, China's new leader Xi Jinping has impeccable political pedigree but has given few clues about how he will govern the country. Xi, 59, walked into the Great Hall of the People in Beijing today as general-secretary of the Chinese Communist Party, the most powerful position in the world's most populous country and second-biggest economy. He is expected to become national president in March and hold both posts for the next decade. He has risen to the top of the secretive party by presenting himself as a compromise candidate - acceptable to outgoing leader Hu Jintao, still-influential former president Jiang Zemin, and other powerbrokers. But since he has largely kept his policy leanings to himself, how he will address China's challenges remains unclear - even though he takes over at an uncertain time, with growth slowing as public expectations and scrutiny rise. "He's a team player.
Amid risks, IMF backs budget surplus IMF deputy director for Asia-Pacific Masahiko Takeda says Australia has left itself vulnerable to external shocks through its dependence on the mining sector for growth. Photo: Michele Mossop Joanna Heath and Jacob Greber The International Monetary Fund has given a strong tick of approval to the Gillard government’s budget surplus target, but warns that any collapse in China would send Australia’s housing market into a tailspin. The Washington-based fund said the present level of official interest rates and fiscal policy settings were “appropriate” and had given Australia the flexibility to take action if the global economy collapsed. “With expected inflation within the target range, the strong Australian dollar, and given efforts to return the budget to surplus this year, monetary policy should remain accommodative, and should act as the first line of defence against near-term adverse shocks,” the fund said in its latest Article IV consultation. “It’s a judgment call.”
A classic Labor budget - The Drum Opinion Find More Stories A classic Labor budget Tom Elliott The 2012 Federal budget is, in many ways, a classic Labor budget. One wonders, however, whether such preaching to the converted will gain Labor any new votes. Corporate Australia – the company tax rate will now not be cut from 30 per cent to 29 per cent. Mining companies – the Mineral Resources Rent Tax (MRRT) is now a reality. Wealthy superannuants – people who currently earn over $300k per annum will now pay more tax on their superannuation. Small Business – perhaps curiously, the ability of small business to claim back previous tax paid in the face of current losses is an excellent idea. Low income families – whether it's carbon tax subsidies or more funds for Part A family payments, those earning less than approximately $80,000 per annum will receive more from Mr Swan. The Disabled – the proposed National Disability Insurance Scheme is an excellent idea, and one which is supported by both sides of politics. Email Share x del.icio.us Digg
China's Communist Party anoints Xi Jinping as the nation's new leader Sorry, but this video is not currently available. Premium Content To access premium content, please login or set up a subscription. It's quick, and easy. SubscribeLog in China's new leaders, led by new Communist Party general secretary Xi Jinping, left, arrive for a press conference that revealed the new team that will steer the world's second largest economy for the next decade. Members of the new Politburo Standing Committee, from left, Zhang Gaoli, Liu Yunshan, Zhang Dejiang, Xi Jinping, Li Keqiang, Yu Zhengsheng and Wang Qishan. China's new leader, Xi Jinping, addresses journalists in Beijing after securing the Communist Party's top spot. CHINA'S Communist Party faces "severe challenges" including corruption and alienation from the people, Vice President Xi Jinping warned today after being appointed head of the ruling party. “We must make every effort to solve these problems. He is expected to also succeed Mr Hu as state president in March. He took no questions after his speech.
‘Brace for falling living standards’ Professor Ross Garnaut and Dr Martin Parkinson at Wednesday’s International Monetary Fund conference. Photo: Sean Davey Jacob Greber, Sophie Morris and Joanna Heath Ross Garnaut, the Hawke government economist who predicted the rise of China, has warned Australians to prepare for a living standards bust as the resources boom gives way to falling export prices and a slump in mines development. “I think we’re going to have a very difficult time adapting to the decline in living standards that’s going to be a necessary part of the adjustment to the end of phase one and two of the boom,” he told a conference on the rise of Asia. In Parliament, the government was attacked over the credibility of Treasurer Wayne Swan’s budget strategy following revelations in The Australian Financial Review there is unrest among Labor MPs about the government’s spending plans. Mr Swan staunchly rejected calls from the back bench to consider raising taxes. “Because boom implies there’s a bust,” he said.
The era of surpluses are upon us: Swan Treasurer Wayne Swan is predicting budget surpluses from now on, but one leading economist does believe this will not automatically translate into lower interest rates. As was widely expected, the treasurer's fifth budget released on Tuesday projected a $1.5 billion surplus in 2012/13 and bigger surpluses down the track to 2015/16. "The deficit years of the global recession are behind us. The surplus years are here," Mr Swan told parliament. The turnaround occurred despites the deficit for this financial year deteriorating to $44.4 billion, from $37.1 billion. Advertisement Labor's first surplus since 1989/90 will mark the biggest fiscal consolidation in over 50 years. However, shadow treasurer Joe Hockey said over the year there had been a $22 billion blowout in the 2010/11 deficit. "And they expect us to believe they will deliver a surplus next year," Mr Hockey told ABC television. Mr Richardson said while the RBA might cut rates again, it wouldn't necessarily be because of the budget.
News / International : Hu Jintao formally bids farewell to Chinese Communist Party Beijing, Nov 16: Outgoing Chinese President Hu Jintao has formally relinquished his role at the top of the ruling Communist Party, clearing the way for Xi Jinping to take over as the country’s new leader. Hu, 69, formally bade farewell to the party at a function here last night after ensuring once-in-a-decade smooth transfer of power. Keeping up with the party rules and conventions, Hu quit as party General Secretary, President and Chairman of the Military Commission, handing over all the three powerful posts to his successor Xi, 59, who was formally elected as the new leader of the Party yesterday. Hu’s graceful exit was different from that of his predecessor Jiang Zemin who continued as Chairman of the Military Commission for two years even after retirement and retained his influence over the party till today. Hu and Wen would continue in office as Chinese President and Premier, respectively till March next year. (This article was published on November 16, 2012)
Miners should pay a premium Listening to the mining industry complaining about the high exchange rate is like listening to a three-year-old complaining about the noise of their own tantrum. It simply adds insult to injury. The surge in world demand for our resources and the flood of foreign money into Australia to buy or build mining assets has been a major driver of the 43 per cent surge in the exchange rate from $US0.736 in 2004 to $US1.056 now. As the Australian dollar hit the $US0.80 mark the strain on other exporting sectors began to show, particularly in manufacturing, tourism and agriculture. But, we were told, don’t worry about it. But neoclassical economics is a fickle friend. Similarly, as the exchange rate has risen the export competitiveness of the mining sector has been reduced. The most recent mining boom has been the biggest in modern Australian history and the most disruptive. During the GFC the mining industry shed jobs faster than any other industry.
Hey presto! A horror budget without the pain - The Drum Posted Tue 8 May 2012, 8:09pm AEST It's a horror budget without the pain. The biggest fiscal contraction in the nation's history - $46 billion, more than three per cent of GDP, bigger even than Arthur Fadden's nightmare budget of 1952 - yet still delivering a fistful of handouts to low and middle income families. Hey presto! Call Wayne Swan a magician. Call him Houdini. There's some fiscal magic in the way the surplus, a core political promise, has been achieved: the Government's effectively shifted about $7 billion in one-off payments forward into this financial year, and its deferred spending on defence and foreign aid. But the forecast surplus of $1.5 billion could still easily vanish before it appears. Why? Treasury has been far gloomier in its assessment of the troubled region than the International Monetary Fund. But even Treasury's forecasts are optimistic. Europe is hitting the political limits of the austerity: the election results in Greece and France demonstrated that.
APRA releases final prudential standards for superannuation The Australian Prudential Regulation Authority (APRA) has today released a response paper and 11 final prudential standards for the superannuation industry. The release of this package is the culmination of a two-stage consultation process that commenced in September 2011 and was followed by the release of draft prudential standards for superannuation in April 2012. The paper released today outlines APRA’s response to the main issues raised by industry during the consultation process. Submissions were unanimously supportive of APRA’s objectives and the broad direction of the draft prudential standards, including the proposed range of topics the standards will cover. APRA Deputy Chairman Ross Jones said the introduction of prudential standards for superannuation is an important milestone as all APRA-regulated industries are now subject to prudential requirements. The remaining five prudential standards cover matters that are specific to superannuation. Media and industry enquiries only: