When the Labor Party's national secretary announced his resignation on Wednesday, Julia Gillard put out a glowing tribute to the man. It unwittingly encapsulated the central problem facing Labor.

The Prime Minister thanked Karl Bitar for his efforts that "helped us be re-elected in 2010 allowing us to deliver our plans to make Australia a stronger and fairer society". In just 20 words, Gillard said so much, and so much wrong.

The party's looming death as a stand-alone political entity is the biggest story in contemporary Australian politics.

Labor's end - that's all, folks