Sharp drop for economy IMF warns

THE International Monetary Fund has slashed its economic forecasts for Australia, warning of a new global recession that would hit commodity prices and drive millions worldwide into unemployment.

Hours before the fund published its unexpectedly gloomy update in Washington, the Reserve Bank of Australia released a statement expressing concern about the global outlook and opening the way for interest rate cuts should things deteriorate.

The Australian dollar slid to a five-week low of US102¢ over renewed concerns about Europe after Italy lost its A+ credit rating. Australian shares fell 1 per cent.


The fund says Australia will grow at only 1.8 per cent this year, down from its previously forecast 3 per cent. The figure is way below the May budget forecast and only half the most recent Reserve Bank forecast, suggesting it will be harder than expected to reach the promised budget surplus in 2012-13. For 2012 the fund forecasts 3.3 per cent, down from 3.5 per cent.

But it points out that these are best-case forecasts, made on the assumption that almost everything goes right.

Its best case is for "anaemic" growth in the advanced economies of 1.6 per cent and for global growth of 4 per cent.

"However, this assumes European policymakers contain the crisis in the euro area periphery, that US policymakers strike a judicious balance between support for the economy and medium-term fiscal consolidation, and that volatility in global financial markets does not escalate," the fund says.

If one or more of its best-case scenarios does not eventuate, the US and much of Europe could slide back into recession, commodity prices could fall "abruptly" and much of the rest of the world would face a repeat of the global financial crisis.

The update is prefaced by an unusual apology. The chief economist, Olivier Blanchard, says he "largely failed to perceive" the slowdown as it was happening this year, wrongly blaming it at first on one-off events such as the earthquake and tsunami in Japan.

"Now that the numbers are in, it is clear there was more going on," he says. "What was going on was the stalling of two rebalancing acts; the shift from fiscal stimulus to private demand within nations and a rebalancing of trade between them.

"Markets have clearly become more sceptical about the ability of many countries to stabilise their public debt. As time has passed their worries have extended to countries from Japan to the United States. These worries have led to a partial freeze of financial flows."

So uncertain is the fund of the best way forward it stops short of offering advice, saying merely that the right approach depends on "individual country circumstances". The usual advice of tighter budgets could "lead to even lower growth".

The fund says Australia is in about the best fiscal position of any developed country, having the second-lowest government debt of 29 advanced economies, being beaten only by Estonia.

The Treasurer, Wayne Swan, who is about to go to Washington for the annual meetings of the IMF and World Bank, said the update was a "stark warning" that indicated the global economy had entered "a dangerous new phase".

The Reserve expressed concern about "extreme volatility in financial markets" reflecting fears about a global slowdown and an escalation of debt troubles in the US and Europe. It would note these developments in deciding how to move rates.



Read more: http://www.smh.com.au/business/sharp-drop-for-economy-imf-warns-20110920-1kjn6.html#ixzz1YXSP6JNO
 
Been telling people here for a while we're probably due for a downturn. How severe? I don't know.

But anyone who thinks mining will carry us through is kidding themselves because when things go pear-shape that's the first industry to sack everybody - as usual, working class buy in new suburbs lead to, bang, massive foreclosures. History does in fact repeat itself, always.

Lucky for us we have a lot of room to cut rates, but when you're 90% geared and have no job, you actually can't afford home loans even on 1% mortgage rates.
 
Thanks for that.

A damn good shakeup for the entire global economy ... even more interesting to see the result of the fallout in several years. I feel a real shift happening.
 
Been telling people here for a while we're probably due for a downturn. How severe? I don't know.

But anyone who thinks mining will carry us through is kidding themselves because when things go pear-shape that's the first industry to sack everybody - as usual, working class buy in new suburbs lead to, bang, massive foreclosures. History does in fact repeat itself, always.

Lucky for us we have a lot of room to cut rates, but when you're 90% geared and have no job, you actually can't afford home loans even on 1% mortgage rates.

Agree.

It is ridiculous to think that somehow Australia is insulated from worldwide market forces.
 
Australia's not immune.

It's a question of how severe.

The initial GFC was contained quickly, but Australia faced a near-death that I'm sure most people in this country didn't realise/appreciate.

At some point we were briefed by one of the top ten people in a private meeting of a top 10 global financial instituion, saying the world was nearly about to collapse, if a certain decision failed to be passed on time in two days. But that's history - doesn't matter, they got through it. Was fun to be in that meeting, that's all.

In the last few years, China has managed to use its significant reserve to prop up its domestic economy - even if it was unprofitable to do so - and therefore ensure growth in the region was somewhat sustained. Which is fine, it's no different from our government wasting money on NBN, $1000 handouts to every citizen, solar panel schemes etc. The only difference is our government's money comes from taxes, China's comes from a trade surplus whereby SOEs channel the mney back in to government coffers.

If GFC II is sufficiently severe, at some point 中南海 might pull the pin and conserve cash, meaning artificial growth in China would stop. Downward commodity prices would put marginally profitable mines (don't want to slander any company so won't list them) out of business and everyone involved in the mine would be SACKED. And then any supplier/industrial company associated with it would be FIRED. And before you know it, it's gone contagious. Banking services stop etc and people are SACKED. Retail dies (or is it already dead haha) and more workers are FIRED. House prices fall and real estate agents are also SACKED! Car dealers are FIRED because real agents stop buying beamers and mercs from them. Then supermarket SACKS people because less people are buying groceries. Before you know it, the nursing home and school are FIRING teachers and nurses.
 
Hi,

How severe is the question?
If unemployment touches7% then mordants would severely pinch Lot of families..
Even low int rate would not prevent payment in arrears or foreclosures..

Any tips to go through this with minimal impact.

Regards,
TV
 
But anyone who thinks mining will carry us through is kidding themselves because when things go pear-shape

Spent 8 intensive hours in a Austrade seminar yesterday with a very knowledgable instructor.

Asked him towards the end what direction he thought Australia would take after the shakeout of the current global economic situation - with China being the manufacturing centre, India being IT, UK still being financial etc.

His first comment was that we (as a nation) had to get our ar*es off the banana lounges. Mining will not support us long term. The unions are still hampering effective growth. We need to stop selling our intellectual knowledge and innovations overseas and become a "brains" country - with China and India being our brawn.

His biggest fear is that we would fall into the easy path and become a "service" country, ie rely on tourism, health and education servicing to the rest of the world, which would keep us very mediocre.

He is so right ... we, as a nation, are very creative. The problem is that we don't innovate. Creative = idea ... Innovate = executing idea. As a western nation we have one of the lowest incentives by both government and private equity to take our ideas to development.

Was a very brain overloading day ... but fantastic.
 
Who knows... there's too many things to consider.

But here's some insight/thoughts on Australian real estate. The key question is, how contagious are Australia's mortgages? Are we going to see widespread defaults, leading to significant bank losses and write-downs? Because if we do, we're ******ed.

USA
In the USA, the Fed Reserve cut rates significantly with GFC hit. But that was not enough to stave off significant foreclosures. Having done some investigation in to the USA, a couple of the problems I saw was this:

Second Tier States
Despite the rate cuts, in second-tier states/cities (eg Florida etc), the unemployment was so high that it didn't matter even if you could rent the house out for 10% yield and borrow at 3%. The reality was, the house was EMPTY!! There was no one in these cities with jobs/money. In fact if you tried to collect rent you'll get shot like that Australian landlord.

New York Manhattan - The King of the 4
Turning to some Manhattan condos which I've been looking at, this is what I observed.

Despite the significant rate cuts, the properties were still significantly cashflow negative. I saw this condo with 7% gross yield (as Americans are much more savvy about gross vs net they tend to differentiate the two) and on 3% interest rates, it was still significantly cashflow negative.

The reason is because the NYC Class 1-4 taxes were so high that it was impossible to hold the condo. These taxes are the equivalent of our land taxes, but instead of representing 0.05% of the "land value" these taxes represent between 1% to 7% of the "market value" of the condo, depending on what class you fell under.

A further issue with these condos was the high insurance cost (it was around 0.3% of value vs. 0.1% here) and high body corporate costs.

What about Queen and Jack, London and Hong Kong?

What I noticed in London and HK is that the rate cuts actually managed to put off a property crash.

In HK in particular, the taxes are straight forward. The only major costs are body corporate as nearly all people live in apartments in HK. Even though HK has significantly much more expensive apartments both on absolute terms, yield and price-to-income ratios than Sydney/Melbourne, prices have only dropped ever so slightly as most investors are able to hold firm because of sufficient rental demand and relatively low rates (I can lock in 2.5% fixed rate for 3 years now on properties that yield 3.5-4.5%). However, HK does face the problem that there are a lot of vacant apartments (in every suburb) because there are a lot of spruikers who buy it and leave it vacant to flip (in HK you can't arrange inspections even for a sale without a tenant's consent). So in a sufficient market down-turn, a lot of people will vacant dump properties on to the market.

In London, prices have come back a bit, but nowhere near as severe as the US. The major problem with London is the UK is facing a fairly major recession and a lot of people are leaving the country because there are not enough jobs around - in banking alone 80,000 people are expected to be let go in the next few months in London. This obviously means there'll be a glut of empty properties again at places like Canary Wharf. However for more established areas like Nottinghill, that might not be the case.

And finally, Tokyo?
I know nothing about Tokyo. Konichiwa

Conclusion

There are baiscally two major factors, as much as I see it.

- Interest rates
- Vacancies


The real question is, in a downturn, can and is it within the the RBA's mandate to drop rates fast enough so that most investors actually are cashflow positive and therefore can hold on to their properties and therefore not trigger a round of sell-downs.

The second question is, even if rates can be dropped to such an extent, will Australia be hit such that there'll be no rental demand anyway either because people are out of jobs or because people are leaving the country in search of greener pastures?

That reaffirms my suspicions. Australia's relatively simple tax system compared to the US means it is easy to see that a sufficient drop in rates will probably stave off a crash as most investors (even if they bought in 2010) should be CF+, meaning you're not forced to sell even in a severe downturn where prices are dragged down by PPORs who lose their jobs.

Also I suspect mining cities will be the first to go in such a down turn. Followed by fringe/outer suburbs.
 
Spent 8 intensive hours in a Austrade seminar yesterday with a very knowledgable instructor.

Asked him towards the end what direction he thought Australia would take after the shakeout of the current global economic situation - with China being the manufacturing centre, India being IT, UK still being financial etc.

His first comment was that we (as a nation) had to get our ar*es off the banana lounges. Mining will not support us long term. The unions are still hampering effective growth. We need to stop selling our intellectual knowledge and innovations overseas and become a "brains" country - with China and India being our brawn.

His biggest fear is that we would fall into the easy path and become a "service" country, ie rely on tourism, health and education servicing to the rest of the world, which would keep us very mediocre.

He is so right ... we, as a nation, are very creative. The problem is that we don't innovate. Creative = idea ... Innovate = executing idea. As a western nation we have one of the lowest incentives by both government and private equity to take our ideas to development.

Was a very brain overloading day ... but fantastic.

Tourism is too fickle. You end up like Greece.

Healthcare is good. We should be a leading-edge age care, biotech country. People should be coming here to take advantage of the good environment to recover from serious illnesses etc. But alas, our medical equipment and facilities are SO outdated. If anyone has been to HK/Tokyo they'd know.

Our education can also be a big seller but the industry is run so poorly. There should never have been so many rogue colleges firstly. But since there was, it doesn't mean you suddenly clamp down on the industry and get tough. Typical uselss political knee-jerk reaction.

Other great areas of growth include agriculture - we should be selling our milk, farming products, nutrient products and marketing them as premium just as Germany markets Bosch and Mercedes as premium cars and Japan markets its meat and dairy as premium. They should be packaged nicely and the Australian brand should be promoted.

I don't understand why we are so populist. We have such a small population and already people are talking about how Chinese and Indians are going to use up all our food and farm land. Reality is Japan, with a much bigger population than what this place would ever be in the next century, exports this type of stuff at premium prices.

Another big one is research into renewable energy, with all our useless forests etc. And if we're going to grow education and get big on it we should be throwing money in to solar panels etc. Suntech billionaire founder went to China and did it. He was a UNSW researcher and he tried to kick-start the industry here. But alas our govenrment had no foresight so he went to China to create the booming industry there.

If this country was run like a corporation as in Singapore, we'd be doing well. Tell your trainer the first thing this country needs to do is

a) Raise the salaries of country leaders and bureacrats so we actually attract talent rather than deadbeats
b) Instill a new culture of respect for political leaders rather than throwing pies at them and calling them Little Johnny so we again attract talent

Yes that is part of the reason. I consider myself a fairly capable person but I'd never go in to politics because of the amount of bogans I'd have to deal with and be scrutinised by. So little payoff too - a $200k pay cheque. Lol. No wonder some MPs have to resort to stealing from supermarkets.

Not only is the pay dismal, people actually don't respect what you do. Well that's why you have a parliament full of dead beats so you just get in to a downward spiral. Attract deat beats, disrespect them, attract even more dead beats, respect them even less and so the cycle continues. Soon Centrelink people will be MPs at this rate - as that is probably still more highly regarded than people who steal from supermarkets.
 
At some point we were briefed by one of the top ten people in a private meeting of a top 10 global financial instituion, saying the world was nearly about to collapse, if a certain decision failed to be passed on time in two days. But that's history - doesn't matter, they got through it. Was fun to be in that meeting, that's all.

I'm not sure if it was the same clowns or not but a similar messge was given by the bankers of someone I was trying to seure a JV with. Of course they panicked and canned it and the decision cost me a couple of mill. Of coursetheir scenario never happened and now there is a shortage of the product I was trying to put together. At least everyone had fun... personally I'd rather play dodgems in ferraris but each to their own!

probbaly the greatest thing we should fear is fear itself
 
We should be a leading-edge age care, biotech country ...

Other great areas of growth include agriculture - we should be selling our milk, farming products, nutrient products and marketing them as premium ...

Another big one is research into renewable energy ...

Biotech? Agree ... we develop the concept of fabulous pharmacuticals and products for the health industry worldwide - but then sell the concept overseas.

I don't agree that we should become "the place to go" as healthcare is hideously expensive and would be unaffordable at current wages. Take Thailand as an example of somewhere "to go". I don't particularly want to become another Thailand regarding healthcare.

Agriculture? Again totally agree. New Zealand does a great job of selling it's agriculture products to the world. They value add as well as selling the image. On example the teacher gave was Australian prawns being shipped to Japan in unlabelled brown boxes, of a size that is unsuitable for the restaurant trade ... so the distributors repackaged in their own packaging to the right size. Meant that it was unknown that these "you beaut" prawns were from Australia.

Clean energy? Again totally agree. Did you know that the researchers at the University of Newcastle have developed a solar paint? Can be painted directly onto your roof so that your entire roof acts as a solar panel ... prob not as no one hears about it!

Same with the CSIRO in Newie developing a commercial size airconditioning system that runs off grid on it's own heat and solar conversion system. One was installed at the TAFE last month. Didn't hear about it? Not surprised.

I can see both technologies going overseas for further development and marketing.
 
great posts DB.

question - if everyone is leaving the US and UK, where are they going?

a lot of UK-ites are migrating here. have a look at the figures for the last 24 months on UK immigrants.

a lot of folk from the US are taking working hoildays and coming here, filling our service based industires in tourism areas and mining regions that cant get staff at a reasonable rate (being award wage). head to the south and north west of WA and ask for a coffee - and the accent you'll get is american or canadian.

economic refugees will fill the holes in our economy which will allow services to continue.

expansion on Inpex / Wheatstone / Pluto isn't going to stop because the shadow banking funds have locked up again - BHP just built the bggest tower ever in Perth.

while the news is worrying - people have to eat, sleep, move and shyt; and as long as they do, you can turn a profit.
 
Clean energy? Again totally agree. Did you know that the researchers at the University of Newcastle have developed a solar paint? Can be painted directly onto your roof so that your entire roof acts as a solar panel ... prob not as no one hears about it!

Same with the CSIRO in Newie developing a commercial size airconditioning system that runs off grid on it's own heat and solar conversion system. One was installed at the TAFE last month. Didn't hear about it? Not surprised.

I can see both technologies going overseas for further development and marketing.

Sad state of affairs. Politicians won't spruik good news/ideas unless they can slap a sponsored by guberement label on it or if it fits the Tax/Legislate A and innovation from B will follow rhetoric.

Uni's and CSIRO are notoriously bad implementers/marketers as they have their eye on research funds only. Exceptions being the mana from heaven the CSIRO got for it's IP in wifi, I suspect a lot of dumb luck was involved in securing the IP and was no thanks to the bureaucracy.

As the venture capital market is non existent in Australia is it any wonder researchers/innovators go to were the $ and recognition is given.

The only thing Oz has going for it is it is a kinda nice place to live, so the brains trust that makes $$ overseas tends to migrate back when their ideas are bought out and taken to market OS.

It will be interesting to see where the brains trust will gravitate to in the future. US or China or outside possibility EU?

It's also nice that tech/innovation doesn't discriminate and most technological advances are shared these days, so we here in Australia can adopt market leading techs that investment in OS R&D has paid for.

It's also nice that financial markets/governments are dumb enough to value the AU dollar so high and OS governments are intent on destroying the value of their own currencies.

/end rant.
 
expansion on Inpex / Wheatstone / Pluto isn't going to stop because the shadow banking funds have locked up again - BHP just built the bggest tower ever in Perth.

while the news is worrying - people have to eat, sleep, move and shyt; and as long as they do, you can turn a profit.

more to the point they need energy to do all that. I think the change in composition of our resources industry is largely a missed point, as is the whole peak oil thing which has been strangely forgotten ever since the GFC
 
I suppose the RBA's one million dollar man will have to revise his views now, and stop banging on jawboning about interest rate rises.
 
I'm not sure if it was the same clowns or not but a similar messge was given by the bankers of someone I was trying to seure a JV with. Of course they panicked and canned it and the decision cost me a couple of mill. Of coursetheir scenario never happened and now there is a shortage of the product I was trying to put together. At least everyone had fun... personally I'd rather play dodgems in ferraris but each to their own!

probbaly the greatest thing we should fear is fear itself

Not sure, do you deal much with any of US/Switzerland/French/German banks?

I think there was a genuine concern at the time, though the Obama Administration reacted fast enough to save everybody. But who knows yea? Even if there was only a 10% risk the whole world will melt down, they probably still have to make a call like that and can your project.

It's like saying, if you had a minor back operation to fix up a bit of back pain or you could live with it, but there was a 10% chance you'd become a quadraplegic if you did the operation, would you do it?
 
Biotech? Agree ... we develop the concept of fabulous pharmacuticals and products for the health industry worldwide - but then sell the concept overseas.

I don't agree that we should become "the place to go" as healthcare is hideously expensive and would be unaffordable at current wages. Take Thailand as an example of somewhere "to go". I don't particularly want to become another Thailand regarding healthcare.

Agriculture? Again totally agree. New Zealand does a great job of selling it's agriculture products to the world. They value add as well as selling the image. On example the teacher gave was Australian prawns being shipped to Japan in unlabelled brown boxes, of a size that is unsuitable for the restaurant trade ... so the distributors repackaged in their own packaging to the right size. Meant that it was unknown that these "you beaut" prawns were from Australia.

Clean energy? Again totally agree. Did you know that the researchers at the University of Newcastle have developed a solar paint? Can be painted directly onto your roof so that your entire roof acts as a solar panel ... prob not as no one hears about it!

Same with the CSIRO in Newie developing a commercial size airconditioning system that runs off grid on it's own heat and solar conversion system. One was installed at the TAFE last month. Didn't hear about it? Not surprised.

I can see both technologies going overseas for further development and marketing.

Yea I saw the clean energy article somewhere too. Made me wonder. We honestly don't market our brands enough. Most people still think we're some outback nation with kangaroos and populist rhetoric, unfriendly migration stance and unrepentful decisions (especially when Indian students are bashed and killed) perpetuate that image.

Re agriculture, you are spot on. A lot of premium beef, nutritional products, seafood are shipped to places like Japan. And Japan repackages it all and re-sells it back to other Asian economies like South Korea, China, Hong Kong, Singapore for premium prices.

I know the Australian agricultural brand has significant potential in China, having recently sourced a state-based conglomerate from China to fund some projects here for ourselves. But alas even some of our most progressive politicians play the rhetoric card of "oh no China's going to buy up all our beef and milk and soon we'll starve to death". Honestly, we have, 22 million people last I checked with an eastern seaboard bigger than Japan which houses 100 million people?

It's sad to see even new progressive MPs like Liberal member Joshua Frydenberg take such a conservative, 1960s, anti-"Communist" (come on, we all know which country is the real socialist one between American and China surely) stance.
 
great posts DB.

question - if everyone is leaving the US and UK, where are they going?

a lot of UK-ites are migrating here. have a look at the figures for the last 24 months on UK immigrants.

a lot of folk from the US are taking working hoildays and coming here, filling our service based industires in tourism areas and mining regions that cant get staff at a reasonable rate (being award wage). head to the south and north west of WA and ask for a coffee - and the accent you'll get is american or canadian.

economic refugees will fill the holes in our economy which will allow services to continue.

expansion on Inpex / Wheatstone / Pluto isn't going to stop because the shadow banking funds have locked up again - BHP just built the bggest tower ever in Perth.

while the news is worrying - people have to eat, sleep, move and shyt; and as long as they do, you can turn a profit.

People are certainly moving out to here.

For me though the real risk though is what happens if and when the last bastion falls - ie if and when China falls and drags the world down with it?

I think in such a scenario, no one will be spared. Though the previous analysis was meant to assist in identifying how much we can stave off a widespread mortgage disease. And judging from the UK experience, perhaps just perhaps Australia will get through. You might get a 90s recession but probably not a 30s depression.
 
Sad state of affairs. Politicians won't spruik good news/ideas unless they can slap a sponsored by guberement label on it or if it fits the Tax/Legislate A and innovation from B will follow rhetoric.

Uni's and CSIRO are notoriously bad implementers/marketers as they have their eye on research funds only. Exceptions being the mana from heaven the CSIRO got for it's IP in wifi, I suspect a lot of dumb luck was involved in securing the IP and was no thanks to the bureaucracy.

As the venture capital market is non existent in Australia is it any wonder researchers/innovators go to were the $ and recognition is given.

The only thing Oz has going for it is it is a kinda nice place to live, so the brains trust that makes $$ overseas tends to migrate back when their ideas are bought out and taken to market OS.

It will be interesting to see where the brains trust will gravitate to in the future. US or China or outside possibility EU?

It's also nice that tech/innovation doesn't discriminate and most technological advances are shared these days, so we here in Australia can adopt market leading techs that investment in OS R&D has paid for.

It's also nice that financial markets/governments are dumb enough to value the AU dollar so high and OS governments are intent on destroying the value of their own currencies.

/end rant.

Europe is the leader in renewable energy at the moment. If the focus was that, probably there. Some of these countries like Switzerland are so far ahead. Though China is beating them on cheap manufacturing.

Australia is a great place to live - but living only once, it would certainly be nice to live at bigger cities too (Sydney's the only city of global relevance and it is pretty impressive here).

My personal aim would be to be semi-retired from day-to-day work by 29 latest and hopefully live between HK/Melb and maybe Shanghai, though if I had more $$ I'd buy a small apartment and live in NYC and Vienna for kicks too.

Funny the US and Japan destroy their currency but the Chinese Yuan is pegged anyway, so it makes no difference, US and Japan's manufacturing are still *****ed and market share is floating to China/South Korea, and to a lesser extent Vietnam. I wonder how the US and Japan gets out of this mess. I certainly don't think it's the century to be American or Japanese, let alone the forgotten nations like Europe.
 
If this country was run like a corporation as in Singapore, we'd be doing well. Tell your trainer the first thing this country needs to do is

a) Raise the salaries of country leaders and bureacrats so we actually attract talent rather than deadbeats
b) Instill a new culture of respect for political leaders rather than throwing pies at them and calling them Little Johnny so we again attract talent

Yes that is part of the reason. I consider myself a fairly capable person but I'd never go in to politics because of the amount of bogans I'd have to deal with and be scrutinised by. So little payoff too - a $200k pay cheque. Lol. No wonder some MPs have to resort to stealing from supermarkets.

Not only is the pay dismal, people actually don't respect what you do. Well that's why you have a parliament full of dead beats so you just get in to a downward spiral. Attract deat beats, disrespect them, attract even more dead beats, respect them even less and so the cycle continues. Soon Centrelink people will be MPs at this rate - as that is probably still more highly regarded than people who steal from supermarkets.

As a Singaporean, I grudgingly agree with your view on rising the salary of politicians. Back-bench MPs are paid about SGD $200K, with cabinet ministers going at about SGD $1.5M and the Prime Minister himself getting around SGD $3-4M.

If I was a high-performing private sector fellow with interest in politics but earning more than a backbench MP, I would probably only go into that area if I had other sources of income to compensate for the drop in earnings.

With that said, there is currently a salary review being conducted by the Singapore government to par back the salary figures of cabinet ministers; due to the recent 2011 election which say the government drop its popular vote to 60% from 66%.

Regards,

Daniel Lee
 
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