The 40th US President Ronald Reagan, was famous for many quick-witted statements. One of his most renowned is this, ‘the nine most terrifying words in the English language is this, I’m from the government and I’m here to help’.
Interestingly he said this in a press conference on 12th August 1986, a little over 39 years to the day.
What was probably something you could laugh over back then isn’t really a laughing matter today. Jokes are funny when you’re not part of the punchline.
It’s only a little over three months since Australia elected the Labor government to an increased majority. Those who voted for the government were likely hoping that it would do its part to help struggling families make ends meet, heal the division in the country, and restore our country’s pride.
Today, we’re seeing our economy continue to head in the wrong direction. Living costs are rising faster than wage growth, government jobs are crowding out private businesses, and housing affordability continues to be a blight on the younger generation. Meanwhile, Australians are divided even further, whether on social and political issues. The mass demonstrations around the country in the weekend before the last over the Israel-Palestine conflict have ignited heated debates about our country’s priorities and allegiances.
In short, you can hardly say that Australia is the happy-go-lucky and laidback country that it was even in the 1990s.
I wonder how many people are now regretting how they cast their ballot. Or they are thinking deeper about the role of government in this country.
I certainly hope some people are reflecting more! No one should expect the government to change its spots and help people better than they can help themselves!
The bloated government now wants MORE
Few governments in history sought to reduce itself.
Australia is certainly not the case.
We’ve watched the many ways it grew, the most obvious being our National Disability Insurance Scheme (NDIS). This government health agency is possibly our largest employer.
Our concern over our health and well-being is the reason that this agency continues to metastasize beyond control. I won’t gain much favour from some of you for writing this. However, it needs to be said.
The latest reports about corruption in the NDIS that are now under investigation should surprise no one. Cases include business transactions to profiteer off the NDIS, fraudulent claims on benefits, abuse of patients seeking care, and so on. Nothing is sacred from greed, incompetence, and the desire for power.
The people who profit off the vulnerable are vile. But the agency isn’t off the hook. Far from preventing these crimes, it facilitated them by its sheer size and difficulty in managing what happens within.
It all stems from a misplaced belief that those who look after one’s health and well-being are above reproach. The NDIS, among other things, is a place where the unscrupulous can prey on naivete and complacency.
It’s no wonder the former Health Minister, Bill Shorten, quietly resigned from his position and disappeared from politics late last year. For someone who harboured such deep ambition for the top job, having lost two federal elections, his abrupt departure speaks volumes.
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Let’s put the NDIS aside. There’s a bigger problem. We’re watching the government shake off all pretence to demand that people pay up to help it expand. To fund this, it’s coming for unrealised gains on selected superannuation accounts (watch that expand), increase mining tax, and even raising the Goods and Services Tax (GST).
The GST being the exception, the mission is to redistribute what belongs to those who are productive to those who consume and micromanage.
Yes, we live in clown country.
Paying for our neglect and complacency
We live in what was once ‘the lucky country’. Our luck is also what is our undoing today.
Australia was one of the few countries that sailed above the waves of the 2007-09 subprime crisis. Our property market, mining investment boom, international student influx, and ability to balance relationships between the US and China helped kept the economy from crashing. Even during the lockdowns and the sharp interest rate rise afterwards, the economy held up… albeit unravelling at its seams.
The accumulated neglect and complacency of the government and the people are now starting to bite. Both the Federal and state governments see their empty coffers and burgeoning debt, thanks to poor management to outright buggery (sorry, but not sorry for the crudeness).
Someone must pay. And it’s us.
That’s why there are more highway patrol cars, parking rangers, bureaucrats in agencies to calculate our dues, and even higher taxes to come.
You mightn’t have voted for it, but we’re all in this together (remember that infamous line? Yuck!).
Finding refuge in Australia’s riches
Somewhere in the distant past the government had our backs. Or it gave us something to make us believe it did. Today it’ll help itself to what we worked hard for and potentially haul us to a tribunal or court if we don’t oblige.
Public anger is starting to simmer, and it could boil over. We’re seeing people out in the streets to demonstrate on what they feel passionately about. Right now these gatherings aren’t to defy the government, but it won’t take much for that to happen. I don’t hope for it, but if that’s what it takes to set the bureaucrats straight, then so be it.
However, don’t just stand back and shrug off the decay that’s taking over our society. Consider safeguarding your assets now.
We’ve seen our dollar remain weak because of our economy and what’s going on with global trade. Cash is no longer king. Not when you bleed purchasing power. When gold in our dollar has risen by around 70% since the start of 2024, that should set off your alarm.
The hope of our economy is in the riches that lie beneath the ground. The world wants a share of it.
Do you own some? If not, it’s time to get started. But mining stocks aren’t easy to invest in. They’re volatile and you need to distinguish between a reliable operator from a speculative punt.
To help you with this journey, I’d recommend you learn about my colleague, James Cooper. He’s an experienced geologist with on-site experience in Australia, the US, and Africa. He currently shares his insights into the commodities space via his newsletter, Diggers and Drillers. Check out his work and consider signing up for his newsletters. You can have the chance of getting a piece of Australia’s riches to stay above the blight that is gripping our country.
God Bless,
Brian Chu,
Gold Stock Pro and The Australian Gold Report
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