9 months

[Reaper]

Well it took them only 9 months to bring the Australian economy to a halt. GDP growth has contracted to just 0.3% in the June quarter.

GDP slowing justifies RBA rate cut

The disturbing thing is this will be considered a great figure when the ALP bring in their Carbon "**** manufacturing in Australia" tax in 2010. The only good news from todays figure is that there will be more downward pressure on interest rates however I'd expect the unemployment rate to start gathering real momentum over the coming months.

Reaper

[CSP]

Yup - but history proves it's pretty much what we should expect from any Labor governemt.

I bet Labor and all their ignorant followers are still crying "we/they cant have any impact in such a short period of time". LOL!!!

[CSP]

How is this muppet the Treasurer?

"The Australian economy continues to grow solidly,'' Mr Swan told reporters in Canberra.

"These are solid numbers, these are solid numbers especially considering global challenges that we are facing and what is happening elsewhere in the developed world.''

Those quotes are from today!!!

[88GreenVN]

Well it took them only 9 months to bring the Australian economy to a halt. GDP growth has contracted to just 0.3% in the June quarter.

GDP slowing justifies RBA rate cut
I'd expect the unemployment rate to start gathering real momentum over the coming months.

Reaper

A 1 % drop in employment will reduce the inflation fig by about 1 % too.

Which in turn will reduce pressure on the intrest rates for home owners - there will just be a few less people able to afford to buy a home.

The economy was always going to slow after a decade of full steam ahead.

[Lumps of cheese]

Yeah but it's always the same, labor **** the show and the libs are left to clean up the mess.

[Reaper]

A 1 % drop in employment will reduce the inflation fig by about 1 % too.

Which in turn will reduce pressure on the intrest rates for home owners - there will just be a few less people able to afford to buy a home.

The economy was always going to slow after a decade of full steam ahead.

Don't know how accurate the correlation of those figures are but wow - what a stupid way of doing it. True - the economy inevitably has to slow eventually. There is a difference between slowing and totally stopping. 3-4% pa. growth is considered healthy. 1.2% means a *lot* of people are going to be out of work, probably loose their homes etc etc etc. But thats ok - Kev'll fix it

Reaper

[Calaber]

Anybody willing to bet that the current Federal Labour government won't be a "one term wonder" like Whitlams was?

[88GreenVN]

Don't know how accurate the correlation of those figures are but wow - what a stupid way of doing it. True - the economy inevitably has to slow eventually. There is a difference between slowing and totally stopping. 3-4% pa. growth is considered healthy. 1.2% means a *lot* of people are going to be out of work, probably loose their homes etc etc etc. But thats ok - Kev'll fix it

Reaper

Those figs come from my 2 years of accounting studies - some time ago now, and used as a summary of major shifts if public senetiment with spending.

But as people loose their jobs and their spending power goes down the gurgler, thats how they can say how the pressure comes off inflation. Less people competeing for goods & services.... yarda yarda...

[CSP]

Anybody willing to bet that the current Federal Labour government won't be a "one term wonder" like Whitlams was?

What's the "Federal Labour government"?

By mentioning Whitlam I'm going to assume you possibly me the Federal Labor Government. And if you think they're going to last more than a term I'm certainly willing to take that bet. They're just screwing the country like every Labor Government gone before them... And people realise the mistake they made by voting Labor this time round. Well, those that I know that have shamefully admited to voting for Labor that is.

On a smaller note it always amuses me that Labor supporters can't even spell Labor...

[garth]

at the risk of being abused and pretty much flamed in a huge way. can someone please explain to me the following

why is labour to blame?

i like you to take into account all the facts from pervious liberal government, their rate rises over the last 8 yrs, when the last interest rate cut was previous to today, what drives the interest rate rises.

im not after big flash words, jsut something nice and simple to explain to me why a labour government that has been in power for 9 months can be blamed for 8 yrs of rate rises that have lead us to the point we are at today.

[Reaper]

What's the "Federal Labour government"?

By mentioning Whitlam I'm going to assume you possibly me the Federal Labor Government. And if you think they're going to last more than a term I'm certainly willing to take that bet. They're just screwing the country like every Labor Government gone before them... And people realise the mistake they made by voting Labor this time round. Well, those that I know that have shamefully admited to voting for Labor that is.

On a smaller note it always amuses me that Labor supporters can't even spell Labor...

It's too early to say but I think they will be re-elected. The liberal party doesn't know if it's coming or going and that doesn't look like it will change any time soon.

at the risk of being abused and pretty much flamed in a huge way. can someone please explain to me the following

why is labour to blame?

i like you to take into account all the facts from pervious liberal government, their rate rises over the last 8 yrs, when the last interest rate cut was previous to today, what drives the interest rate rises.

im not after big flash words, jsut something nice and simple to explain to me why a labour government that has been in power for 9 months can be blamed for 8 yrs of rate rises that have lead us to the point we are at today.

The ALP (by their own admission) had an economy that was rolling along very nicely when they came into office. Growth was slap bang in the "healthy" target zone, interest rates were trending up but still around about the 20 year average (We have to remember that they were coming off a *very* low base) and un-employment is the lowest it's been for many decades. Inflation was on the high end (or slightly higher) of the RBA's target and this is what the ALP zero'ed in on during their election campaign.

The problem is that the cost of oil was one of the primary drivers in pushing up inflation. Weather we like it or not, oil is traded on the world market and Australia has little or no influence on it's cost. So what was the ALP's answer? Cut spending, raise government taxes and charges and encourage the RBA to lift rates.

Any Economics 101 student will tell you that actions like that will put the brakes on the economy and raise un-employment. The problem is it will only have a very minor impact on inflation (remember the cost of oil is controlled externally to Australia).

Compare this approach to that of the Liberals during the Asian crisis several years ago which saw much of Asia in economic meltdown for years. During that time (and shortly there after) Australia had the strongest economy in the western world against a back drop of many countries in recession.

Reaper

[greenfoam]

Don't look at me I didn't vote :!) I was busy racing the VP at Casterton

[Full Spectrum]

at the risk of being abused and pretty much flamed in a huge way. can someone please explain to me the following

why is labour to blame?

i like you to take into account all the facts from pervious liberal government, their rate rises over the last 8 yrs, when the last interest rate cut was previous to today, what drives the interest rate rises.

im not after big flash words, jsut something nice and simple to explain to me why a labour government that has been in power for 9 months can be blamed for 8 yrs of rate rises that have lead us to the point we are at today.

I was led to believe it';s a world thing we are going through right now,
Last i herd the squeeze is just about on every country on the planet.

Parent company's from the U.S are dropping like flys, And they are squeezing the throats of there company's here and world wide, No wonder there is low confidence across the world right now, World wallets are being hit, And we are in it we are not amuined from it no way..
What we are feeling right now is that pressure John Howard himself spoke of before the last election, He spoke of world trouble and hard times it was going to get very tough he said.. And here it is, Ask the Yanks are the having difficulty right now, Yes, Much worse then us, Even the UK is hit, Asia also, I think the U.S has been hit so hard it has sent ripples through the developed world.
Banks have been hurt, We have been hurt, Business is laying of workers from no business or parent company's pressure.. People almost refuse to spend money there confidence is low, Thinking whens the next pay coming there that desperate, Holding off on the things they need waiting for something to turn in there favor, And business is the same, They have budgets to keep to, And if they can't afford the staff they let them go, Or they just sit there doing nothing and that business suffers more, It's something we have all been going through of late.
Finally some good news for home owners, And it's been over shadowed by innuendo..

Only the other day holden let go an unspecified amount of engineers through pressure from GM, They are leaking money like a sieve GM..

In the end, I can't see anything drastic they have done that could have made this economy nose dive. I'm more worried about the next few years, And how we turn it around, It won't happen overnight.

[minux]

Wonder how many people will get ****ed when RBA drops interest rates and the banks do not. A lot of people do not understand that 40% of all funds that banks use come from oversea's, so just because the RBA raises or lowers Interest rates it does not mean that the banks will or will not.

I think people forget banks are a business, as such they are there to make money for stockholders/owners, they are not there to make sure every person in Australia will be better off.

[MasterOfReality]

Their other new wealth tax, aka LCT, is also heading for defeat.

Good.

Swan can't exactly bleat about the opposition tearing a hole in the budget, after a decade of Labor opposition that tried to block every move by the Libs to get the budget back in the black.

Fark I hate socialists.

[Full Spectrum]

So is that, One right makes a wrong, Or Two wrongs make a right, Or two wrongs make two wrongs?.

I don't see the issue with the LCT?, Charing a higher tax on 4wd's over $60,000 can't be all bad?.

[MasterOfReality]

The LCT was a thinly veiled attempt to slug those at the upper ends of the income scales.

It has since been masqueraded as a tax on gas guzzlers after amendments from the Greens, but if they were serious they would then apply a tax on all gas guzzlers, including all cheaper V8's.

[Full Spectrum]

I'd like to see less 4wd SUV's on the roads, But V8's can at least be less hungry for fuel, And most important, Smaller.

They can always pay it yearly or in one hit?.

I'd like a higher registration for better roads and a lower tax on fuel personally.

[minux]

I'd like to see less 4wd SUV's on the roads, But V8's can at least be less hungry for fuel, And most important, Smaller.

They can always pay it yearly or in one hit?.

I'd like a higher registration for better roads and a lower tax on fuel personally.

I agree, registration should be at least $2500 starting on older cars through to around $1000 year for cars under 2 years.

[MasterOfReality]

I agree, registration should be at least $2500 starting on older cars through to around $1000 year for cars under 2 years.

Ah yeah but imagine the outrage and gnashing of teeth from the welfare lobby?

If this were to happen, it would be the higher income earner that would be slugged yet again to subsidence the increase in rego for those on lower incomes.

[Rufus®]

Wonder how many people will get ****ed when RBA drops interest rates and the banks do not. A lot of people do not understand that 40% of all funds that banks use come from oversea's, so just because the RBA raises or lowers Interest rates it does not mean that the banks will or will not.

You'll find that banks have already started to announce rate cuts, once the majority do, the rest will follow. St. George has gone above the 0.25% and announced a 0.3% reduction.

I think people forget banks are a business, as such they are there to make money for stockholders/owners, they are not there to make sure every person in Australia will be better off.

That is one of the reasons why there is a difference between the cash rate and rate the banks charge.

[ProphetVX]

Well it took them only 9 months to bring the Australian economy to a halt. GDP growth has contracted to just 0.3% in the June quarter.

GDP slowing justifies RBA rate cut

The disturbing thing is this will be considered a great figure when the ALP bring in their Carbon "**** manufacturing in Australia" tax in 2010. The only good news from todays figure is that there will be more downward pressure on interest rates however I'd expect the unemployment rate to start gathering real momentum over the coming months.

Reaper

Not to burst your bubble or anything, but we had large debt before the labor government came in, and the government has no control over interest rates, only the RBA.

They have the ability to control other inflationary measures such as taxes. But interest rates were going up well before Labor jumped on board.

Not defending Labor, as I think they are just as bad as Liberal were. But alot of what has happened has been out of their control. Except for the obvious like fuel prices and carbon emissions trading, the former government were the ones who put in place the taxes on fuel in the first place, yet renegged on their promise to remove them once they were no longer needed.

[VrWagz1]

I think labor is doing alright, they are trying to slow inflation so they can assist with stopping interest rates to go any higher, which they have done, but any boffin will know that there will be adverse affects to putting the brakes on. But while they need to put the brakes on a bit, they still dont want to stop the minerals boom either which is proping up this country at the moment, so its a fine line they have to tread. Theres people in the resource sector who arnt even feeling interest rates yet and yet theres the average joe out there who is going under due to higher rates, i think there doing ok so far and have got the right ideas.

[Full Spectrum]

I agree, registration should be at least $2500 starting on older cars through to around $1000 year for cars under 2 years.

Maybe not that high, Or that age, But cars over 10 years? Maybe yes.. Cars 15+ higher maybe, And must provide RWC with reg to claim 18% discount on registration. In that way maybe older cars can be more road worthy with some incentive, Try and encourage more care with older cars, As some are not fit to be on dirt roads..
Just came come back was up the street, Camry with no rear window passed me.

I do agree on Cheaper Registration on newer cars, Should encourage buying newer safer cars. But discourage buying 4wd that only clutter suburban roads.

[Reaper]

I was led to believe it';s a world thing we are going through right now,
Last i herd the squeeze is just about on every country on the planet.

Parent company's from the U.S are dropping like flys, And they are squeezing the throats of there company's here and world wide, No wonder there is low confidence across the world right now, World wallets are being hit, And we are in it we are not amuined from it no way..
What we are feeling right now is that pressure John Howard himself spoke of before the last election, He spoke of world trouble and hard times it was going to get very tough he said.. And here it is, Ask the Yanks are the having difficulty right now, Yes, Much worse then us, Even the UK is hit, Asia also, I think the U.S has been hit so hard it has sent ripples through the developed world.
Banks have been hurt, We have been hurt, Business is laying of workers from no business or parent company's pressure.. People almost refuse to spend money there confidence is low, Thinking whens the next pay coming there that desperate, Holding off on the things they need waiting for something to turn in there favor, And business is the same, They have budgets to keep to, And if they can't afford the staff they let them go, Or they just sit there doing nothing and that business suffers more, It's something we have all been going through of late.
Finally some good news for home owners, And it's been over shadowed by innuendo..

Only the other day holden let go an unspecified amount of engineers through pressure from GM, They are leaking money like a sieve GM..

All of these things are well known and have been around for well over 18 months now. None of them snuck up on this government yet they insist on contractionary spending policies (to slow the economy down) when the rest of the world was inevitably going to do that. All of this at a time when growth was slap bang in the comfortable zone and un-employment was nearing an all time low. Blind freddy would see that a more expansionary monetry policy was the way to go.

In the end, I can't see anything drastic they have done that could have made this economy nose dive. I'm more worried about the next few years, And how we turn it around, It won't happen overnight.

What they should have done was follow a more expansionary monetry policy or at the very least keep the status quoe (sp?) and thus we would have had a chance to minimize the negative world wide effects on our country. Instead they jump on the recessionary band wagon. FFS get them out!

Reaper