Wednesday, May 2, 2007

libs 2007 budget

john-boy and his smiling assasin boy-man costello are telling us all will be well...
with central bank's decision today to leave interest rates unchanged john smiled..""It's good news for Australian homebuyers," Mr Howard told Sky News. "I'm interested in seeing interest rates remain moderate and the Budget next week will contribute downward pressure on interest rates."
Of course Howard would welcome todays decision on interest rates. The coalition must hide in corners chewing each others fingernails each time the reserve bank meets, another rate rise would seriously affect his chances of re-election.

"I will still be able to look people in the eye and say interest rates under the Coalition will always be lower than they would under the Labor party," Mr Howard said. Still, our interest rates are higher than all other nations on the OECD tables except Iceland, Mexico, and Turkey. Are you really as good at managing the economy as you've been telling everyone for the last 11 years john boy?

The Government won the 2004 election on this promise that interest rates were not going to rise, but interest rates have risen four times since then. So, he basically lied to get into government. John's economics 101 made simple. When rates rise it's because of that bad old reserve bank, and nobody made any specific promises about interest rates anyway. When rates fall or stay the same it's because of the Liberal party... you be the same John Howard who promised there'd never be a GST, that rates wouldn't rise, that children WERE thrown overboard, that there WERE weapons of mass destruction in Iraq.....the list goes on...he wins the Pinocchio award, at least he would know where to stick it when he tells a lie-he smiling assisin! moon me!

Mr Howard said mortgage rates were currently 8 per cent, having been as high as 17 per cent under previous Labor government. This year's federal election is expected to be fought on the Government's economic managment and industrial relations which have made it dead easy for employers to sack employees and also write them up on low wage agreements (basically trying to build a cheap workforce)

Labor Party and the unions will come to a head...already Rudd is looking to change his IR policy to enure it is more "balanced". Wait until the old Union hacks start putting their foot down. Unions know this is their last election to maintain any backing and remain viable and financial and they are throwing everything at it and cowering to Rudd and Gillard.

The ability of a government to influence an economy in the short run (and interest rates) is minimal, especially in Australia's case. Ironically, it was the previous labour government that did the hard yards in terms of financial reforms to lay the ground work for a more stable and low interest rate environment. What annoys me the most is that Howard (and his advisors) are aware of this nonsense, yet they still run with the argument. Ok In 2004 Howard said that we could trust him to keep interest rates low. In 2007 he admitted that interest rates were not the responsibility of the government but the Reserve Bank of Australia. Now John Howard is claiming control over interest rates again. I get it. John Howard has the power to lower rates but only the Reserve Bank of Australia has the power to raise them. SIlly me, why didn't I realise that sooner.


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