Nov 072006

First Tuesday in November and the last thing on my mind, or in fact of interest to me, is the horse race which gives Melbournites a day off work. I’m much more interested in what the board of the Reserve Bank will say about Australia’s climbing inflation rate.

Today, the RBA makes a decision which will be as well telegraphed as a blindman’s punch. To raise interest rates, and by how much? I’m punting for the standard 25 basis points, although I’d not be at all surprised by a 50BP rise. Economics is a convoluted science and one I don’t hold a piece of paper for, but monetary policy I understand. When demand begins to out-strip supply where money is concerned, it’s time to throw cold water on demand. Of course, the demand is all contrived by those whose profits turn on the amount of money they don’t own being lent out to people who can’t afford it. Told you I didn’t have a piece of paper for this subject.

Of equal interest will be how the Australian political opposition parties take the current government to task for essentially lying to the electorate. During the 2004 election campaign, the Conservatives ran the theme of ‘who do you trust to keep interest rates low’. I’m not one for reading of blogs habitually, but I do have a half-dozen which I’ll look at every few days. Daily Flute made a very astute observation yesterday. Strange though, how the opposition never manages to make the same connections when they try to Labor the point of rates in the House. Is it down to incompetence or just plain inability?

This on ABC News this morning. Were the House sitting today (GASP…..not on Cup Day!) we’d be treated to nothing more than Wayne Swan puppeting his press secretary’s words and Little Johnny Howler squawking the same “17% under Keating” nonsense. Neither actually landing a punch worth a damn. Yes, we all know Howard lied. Howard always lies. It’s his stock in trade. Obfuscate, mis-direct, tell half-truths call it what you will. It’s why he’s held the top post for so long. Economic management doesn’t enter the equation, in my view. The thing is though, can we really place any faith in Swan under a Beazley government? Come back, Paul! Age is relative, as long as the brain is sharp. All is forgiven……..please??!!!

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