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What!
The worst result in 36 years!!!!!
How can this be?
I thought "Australian families have never been better off"?
Howard/Costello asleep at the wheel?
Even Stephen Koukoulas, Global Strategist at TD Securities in London, agrres…………….
"only an ostrich with its head in the sand would disagree that it was a "big mistake" to pump prime the economy with fiscal largesse when for the last four years the Reserve Bank was trying to dampen the most severe domestic inflation pressures seen in over 15 years. This is economic mismanagement 101.
Net foreign debt is now $570 billion (55% of GDP), versus $190 billion (38% of GDP) in 1996.
Households now allocate 12% of their take home pay on the interest component of debt servicing. This is more than the combined spending of the household sector on health and education! Household debt servicing was 7.5% in 1996 and 'only' 9% in 1990 when variable mortgage interest rates were 17%.
The current account deficit has been above 5% of GDP for five years. This is without precedent and leaves Australia vulnerable to the whims of global capital markets.
The level of government spending as a share of GDP is now at a level that would make Gough Whitlam and Frank Crean blush. It has never been higher. So too with the level of government spending as a share of GDP. Not only did Costello have his hand in your pocket, he was also spending your money on your behalf.
But wait there's more.
Australia's interest rates are now among the highest in the industrialised world and are higher than in many emerging market countries. A decade ago, Australian interest rates were below those in the U.S.. for example, now there are more than 2% higher are going to get even wider.
Economic management is about progress, efficiency, equity, fairness and simplicity with a vision that looks beyond the next election.
Costello was a big spender and big taxer. He added to inflation pressures when the Reserve Bank was pleading for fiscal conservatism. He presided over a labour market skills shortage and through WorkChoices, discouraged people from supplying their services to help alleviate the crisis.
Given this record, it is no surprise that Peter Costello has now squibbed the hard work by skulking to the back bench. "
Cheers
propertypower wrote:I agree guys. I am concerned about the future of our economy.And so you should be propertypower
But why now………why not in 1995?
1995…JOHN HOWARD (Leader of the Opposition)
"Wasn't it in 1986 that the Prime Minister(Keating) said that if we had a worse current account deficit—we would be headed towards becoming a banana republic? We have a foreign debt that has risen from $23 billion in 1983 to $180 billion (1995)."FOREIGN DEBT
1983….$23 Billion
1995….$180 Billion (Banana Republic)
2007….$544 BILLION …..under John Howard1995…JOHN HOWARD (Leader of the Opposition)
"Australia has amongst the highest real interest rates in the world."Today …….2007 Under John Howard (Interest Rates)
Australia 6.5%
United Kingdom 5.75%
Korea 5%
USA 4.75%
Canada 4.5%
European Monetary Union 4%
Sweden 3.75%
Switzerland 2.75%
Taiwan 2.88%
Japan 0.5%1995…JOHN HOWARD (Leader of the Opposition)
"We now have the current account deficit that is the worst in the OECD. It is worse even than Mexico."SO, AFTER 11 YEARS OF GREAT ECONOMICAL MANAGEMENT, HOW DO WE COMPARE TO MEXICO?
Well according to the CIA Website,(2006), NOT THAT GOOD……..
CURRENT ACCOUNT BALANCE
Australia $42 Billion…..Mexico 0.4 BillionINFLATION
Australia 3.8%………Mexico 3.4%UNEMPLOYMENT
Australia 4.9%……..Mexico 3.2%GDP REAL GROWTH
Australia 2.7%…….Mexico 4.80%INDUSTRIAL PRODUCTION – GROWTH RATE
Australia -3.5% (that right – minus)…….Mexico +3.6%EXPORTS
Australia $117 billion…….Mexico $248 BillionRESERVES OF FOREIGN EXCHANGE & GOLD
Australia $49 Billion………Mexico $85 BillionDEBT (2006)
Australia $585 Billion…………Mexico $178 Billion1995…..Speaker Minchin Sen N.H. (LP, SA, Opposition)
"No wonder the Economist said that Australia is an emerging economy which is the next Mexico and which combines a third world economy with a first world standard of living."WHAT!!!!!!!!!!!!!!!
IF ONLY WE COULD BE SO LUCKY!1995…..Speaker Costello Mr P.H. (HIGGINS, LP, Opposition)
"Australia today is staggering under the load of foreign debt. What concerns us is that we wake up a miscreant Prime Minister to the load he has inflicted upon the Australian economy and a country that is staggering under the load of foreign debt which threatens to break that country and impose on ordinary Australians some of the pressures that this government has allowed to build up.."I LIKE THIS ONE
YOU SEE, IN 1995 FOREIGN DEBT WAS "BAD" DEBT
TODAY OUR $544 BILLION DOLLARS OF FOREIGN DEBT IS "GOOD" DEBTTVs, DVDs, GMCs, BMWs, etc, etc, etc
