Bullock vs. the Budget Bloat
News
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Posted 09/07/2025
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1020
Michelle Bullock sent a clear message on Tuesday—one that hit mortgage holders, business owners, banks, and, most importantly, the real driver of inflation: the government.
Once again, she stressed the same point she has made consistently—stop spending beyond the country’s means. Every meeting, every rate pause or hike, comes with the same warning: unchecked government spending must end.
So, to those feeling the pressure from yesterday’s decision, take note. Without disciplined fiscal policy, interest rates won’t come close to the near-zero levels of Switzerland. As long as Canberra continues spending like this, we’re headed further into inflationary territory.
Yesterday’s decision will be felt by many households, but the long-term impact will be even more severe for future generations. Persistent budget imbalances are inflating away economic opportunity, narrowing future prospects to heavily government-dependent sectors like the NDIS. Even dual-income households are struggling to enter the property market, while continued 2.3% migration inflates housing demand and prices further.
Consider this: we had 180,000 Commonwealth public servants in 2024. The current government plans to increase that by 41,000—a 22% jump. With GDP growth at just 1.8%, how can government overhead grow more than ten times faster? The math doesn’t add up. The public may not see it yet, but Bullock does—and she’s pushing back.
Meanwhile, the media and government scramble to blame inflation on Trump, global conflicts, and general economic uncertainty. But with stable oil, gas, and input prices, those excuses simply don’t hold up. They’re either misinformed or misleading.
Elon Musk and Trump War
It’s not just Australia grappling with unsustainable budgets. In the US, the fallout between Elon Musk and Donald Trump has gone public—spurred, reportedly, by another bloated budget.
The new ‘One Big Beautiful Bill’ has blown a further US$5 trillion hole in America’s already steep debt trajectory. Balanced budgets, once a benchmark of good governance, now seem like ancient folklore.
Some suggest Musk’s criticism stems from the end of the US$7,500 EV tax credit. He countered that the handouts favour “industries of the past while severely damaging industries of the future.” But after spending the first half of the year lobbying to reduce government spending via DOGE, it’s clear his concern runs deeper.
Following the budget’s passage, Musk announced plans to launch the "American Party", a move that has sparked both interest and concern.
Ron De Santis – A sensible solution
Ron DeSantis offered a rare moment of political clarity. Rather than starting another party—like Australia’s Teals—he proposed a more practical solution. Musk’s resources, he suggested, would be better spent helping 34 state legislatures ratify a budget amendment to trigger a spending convention. In short: a constitutional cap on spending—a Debt Brake, just like Switzerland’s.
As DeSantis put it:
‘We do have a problem in the Republican Party with these D.C. congressmen. They always run saying there’s out-of-control spending, and they’re going to spend less, and they never do it.”
A DeSantis-Paul ticket could represent a shift towards more fiscally responsible leadership—focused on addressing the long-term consequences of unchecked spending and restoring a sense of accountability to government finances.
Instead of spending AU$500 million on a referendum that ultimately failed to pass, perhaps it’s time we considered a constitutional amendment requiring balanced budgets. No more pork-barrelling. No more short-term politics. Just a fiscal framework every party must follow.
So, thank you, Switzerland. Thank you, Argentina. Thank you, Singapore—and all the governments that take budget discipline seriously. And credit to Michelle Bullock for holding ours to account when few others are willing to.
Stop listening to what’s easy. Start listening to what’s right. And in the meantime, hold gold and silver—while the rest is inflated away.