AN EARLY FEDERAL ELECTION?

It is no secret that Prime Minister Fraser, using Mr. Doug Anthony as his stalking horse, has been attempting to find an issue for an early Federal Election, which would divert attention from the deepening finance economic crisis. But while the Liberal-National Party Coalition might draw some comfort from the fact that the swing to Don Dunstan' s Labor Party last weekend was no greater than anticipated, it must have found the N.S.W. Municipal Elections most disturbing. There was a massive shift to Labor right across the State, including the rural areas.

Mr. Don Dunstan barely survived the last South Australian elections by dissociating himself from the unpopular Whitlam Government. But just as the electors took every opportunity during the Whitlam era to vote AGAINST the Whitlam Government, now they are voting AGAINST the Fraser Government. One of the most ominous developments in the South Australian elections was the 14% vote obtained by Mr. Don Chipp's Australian Democrats in the electorates contested. If this vote is sustained nationwide, then Mr. Chipp is not boasting when he says that his party could win six seats at a half Senate election and hold the balance of power.
While the Australian Democrats have the same internal problems afflicting all parties, with the inevitable struggle for power, they must continue to maintain their present electoral support if the Fraser-Anthony Government continues on its present disastrous course.

Needless to say, Mr. Gough Whitlam is delighted with the increasing prospect of being re-elected to the Prime Ministership, observing, correctly, that the new electoral boundaries also favour Labor. But Mr. Whitlam would prefer a general election in May of next year, by which time he estimates that unemployment will have become worse.

Overtaken by the very events we have consistently predicted, Prime Minister Fraser is desperately attempting now to back step. The week before last he attempted to defuse the fierce anger in the rural electorates, by announcing that the Government would abolish the $16,000 limit on tax averaging and give some financial aid to the desperate beef industry. As we go to press the extent of the aid to the beef industry has not been announced, but unless it is substantial it will do little to halt a growing anti-National Party tide.

Mr. Fraser also promised that the long awaited National Rural Bank will be established. Even if legislation is passed during the present session of Parliament, the Bank could not start to operate until next year. And unless long term, low interest rate credit is provided, the Bank will turn out to be but more political gimmick. The Government is not going to survive by merely offering gimmicks.

Mr. Fraser attempted another back step last weekend with the announcement that the Government was ending its policy of continuing public sector cutbacks. This policy has solved nothing, but in a classic example of gobbledegook, Mr. Fraser says that the Government has now reached a "responsible expenditure base", and that inflation has allegedly been reduced to 9.2% per annum "as measured by the broadly based implicit price deflator." Just what this means we do not know. Perhaps it was thought up by the same bureaucrats who were responsible last week for Mr. Lynch's "explanation" of his changes in the tax scales. Experienced journalists spent hours attempting to understand what the bureaucrats meant.

Unless the Fraser Government is prepared to change its financial policies, starting with a slashing of Sales Tax and other real reductions, it must preside over a deteriorating situation. It might just save itself with an early election on an industrial issue. But with a small majority in the House of Representatives it could be left with a Senate in which Mr. Chipp holds the balance of power. Neither an early election, nor one next year can now halt the revolutionary situation fast developing. The only hope is a change of policy.

THE MIDDLE EAST CRISIS DEEPENS

Palestinian sympathisers have released three CIA documents, which they said showed Israeli Foreign Minister Moshe Dayan deliberately ordered an attack on the U.S. Navy research vessel "Liberty" during the 1967 Middle East war. "Liberty" was attached by planes and torpedo boats killing 34 Americans. An attempt was made to hush up this Israeli attack at the time, but subsequently a number of American journalists brought out the facts.

One of the early Political Zionists, Louis Marshall, made the significant comment about Zionism that it was "but an incident in a far reaching plan." It has been clear from the beginning that the creation and maintenance of Zionist Israel has nothing whatever to do with "providing a home for the Jews", but that Israel is but a pawn in the international power game.

The present Prime Minister of Israel, Begin, was one of those responsible for the terrorist campaign against the British and the Palestinians. He has made it clear that they intend to annex the West Bank as a permanent part of Israel. Now, if Rhodesia decided to move permanently into the border area of Mozambique, claiming that this was essential for Rhodesia's security, the UN would have the proposed "peace keeping" force into action against Rhodesia immediately. But the fact that President Carter does nothing of any significance concerning Israel provides clear proof of the power of the Zionist financial groups in the U.S.A.

There are still those naive people who accept the view that the Soviet wants the State of Israel destroyed. This myth is exposed by Eric D. Butler in Censored History (80 cents posted), essential reading at the present time as a new Middle East crisis develops. If another major military conflict breaks out, this will be exploited, like past conflicts, to further the World Government policy.

If the Carter Administration were genuine in its alleged desire to foster peace and stability in the Middle East, it could defuse the situation by insisting that an independent Palestinian State be established and that Israel withdraw to the pre 1967 borders. An Israeli refusal to agree to this policy could be met by no more financial and military aid from the U.S. Israel could not last more than a few months without such aid. Ruthless economic pressure is applied against Rhodesia, but none against Israel. Another example of the type of double standards being practised in the world today.

BRIEF COMMENTS

Premier J. Bjelke-Petersen made a bad tactical mistake when he claimed in the Queensland State Parliament on September 7th that the economy would now move towards recovery under the Fraser Government. If Mr. Bjelke-Petersen is to survive the election challenge which not only comes from the Labor Party, but also from the Liberal Party, now insisting upon three cornered contests, he must continue to dissociate himself from the Fraser Government. Mr. Fraser's entry into the South Australian election was warmly welcomed by the Labor Party!

Including Medibank effects, the Consumer Price Index (CPI) rise for 1976-77 was 13.4% The latest OECD survey (which Mr. Lynch has quoted when it suits him) states that Australian consumer prices have increased 13.4% for 1976-77. But irrespective of how the rate of price increases is measured (excluding any references to deteriorating quality and declining services) the end result is just the same whether the inflation rate is 9.2% or even temporarily 7%, or 14%. As David Malan so clearly demonstrates in Natural Cost and the Ownership of Money (50 cents posted) the real cost of producing an item of production has nothing to do with money. Money should reflect the reality. Double talk by politicians can never alter this basic fact.

Speaking at the Canberra dinner given to the visiting representatives of the Chinese Communist leaders, Mr. Gough Whitlam smugly observed that such a dinner (hosted by a "conservative" Prime Minister) would have been unthinkable six years ago. No one at the Dinner asked where were the members of the Chinese Opposition. And Prime Minister Fraser did not suggest to his guests that they introduce "majority rule". But he did comment on how valuable China was as an Australian export market. What a pity that someone does not introduce Mr. Fraser to the Communist concept of using "trade" as an instrument of warfare!

Defence Minister D.J. Killen made a very poor showing at the recent RSL National Conference. Many of those present agreed that Opposition spokesman Hayden took the points. RSL spokesmen hammered the point that both the Fraser Government and the Opposition have a poor defence record. Effective defence is one of Australia's most pressing national needs. But with only a fraction of the nation's industrial productive capacity being used, Mr. Killen's plea was that the Government could not "afford" to step up defence spending which, measured in real terms has actually decreased under the Fraser Government.