The economic errors of the PM, part 4. Devil's advocate series 60.

1. The PM, to my mind has committed further economic errors 

2 . The much overhyped good governance, the perpetuation of monopolies, bail outs of inefficient companies and the populist whimsies of gratuitous income transfers. 

3. I actually see misgovernance in 2 notable examples 

4. Tax refund arrears and the spurious budget deficit 

5. If tax refund arrears is allowed to be 34 million, and we have no record of how much has been paid except for the unproven statement of the 2nd FM in parliament , the claim of good governance is hollow 

6. It implies slothness not good governance caused the tax refund arrears to balloon up to 34billion. 

7. If there had been good governance, tax refund arrears shouldn't have been in the region of 30 billion. 

8. It should have been managed to say 3 to 4 billion at close of accounting year. 

9. Ada butot ka, Mr Lim guanyin , Monash U accountant? 

10. If our tax refund arrears had been properly managed at 3 to 4 billion , that would have been our K-percent rule of tax refund arrears quantum 

11. I am not going to make you pusing kepala by discussing the K-percent rule of money growth, conceptualized by Milton Friedman. 

12. The badly governed tax refund arrears caused a spurious deficit on a false GDP. 

13. To my mind, the 4% deficit ( say it is 4%) is built on a false GDP 

14. It's a false GDP because the tax refund arrears is included as revenue earned , thereby inflating the GDP 

15. Let's say the false GDP is 30 trillion. The true or actual GDP is 20 trillion. 

16. It's going to be 4%of 30 trillion not 4%of 20 trillion. 

17. Now, that false deficit can hide a host of financial shenanigans. 

18. It can be used to provide soft loans to crony companies, bail out crony companies, fund stupid projects and opened the doors of corruption. 

19. So claims of good governance are hollow without meticulous policing and great care . 

20. The perpetuation of monopolies is the grossest form of government intervention in the free market economy. 

21. By not managing this, the PM has committed an error 

22. That will be discussed in the next article. 

23. Have a break, have a kit-kat.