Abbott has a bad rap and its nearly as effective as the job done on Gillard. Mark Lathams review of Abbott is quite interesting as he went at it with aim of doing a chainsaw job to him and ended up having to admit he was a totally different personality than portrayed.
Rudd said today " I will run policy past cabinet from now on" ffs
that's what they are there for (arnt they
)
interesting times.
and I think if the libs get a majority, they will be brutal with any superfluous expenditure and I believe its the only way we are going to level out from this tailspin.
Oz is grossly inflated in costs and wages and its the main reason the dollar is killing our industry.
We will need to "devalue" to get back to a level where we can compete on the world stage.
the real world of this is that your $800,000 house will be suddenly be worth $450,000
This is a real simple model of what the world will do in the next 5 - 10 years
The amount of devalue and the rate of it will be determined by the govt policy to a degree......
in the US the fed has tried to "soften" the landing by printing bucket loads of cash but it hasn't worked so they have pulled the ripcord and have now let t he joint run as it should.
as the country and its economics destabilises and devalues, it will increase the buying power of the us dollar.
some of you may have noticed the gold price take a nose dive and its due to the fact that a few investors have sold gold in the view that the US dollar will become more valuable now the printing presses have been turned off and they are getting out.
The current state of play in aus has seen all speculative mining cash disappear, drill rigs are parked up and only current budgeted and cash backed work is going on.
so no new mines will be found.
Existing mining operations are taking the chainsaw to operations as the current cost per ounce / tonne or whatever they are producing is damn close to its selling price.
any developing mines and proposed mines are backburnered currently unless they are real low cost but several signed and sealed projects have been hit by major funders pulling out due to their sudden internal issues.
So the mining Industry is stopped dead in its tracks and has been for a while....this will flow on to the retail and real estate sectors in 6 to 12 months
so look to see interest rates down even lower but stuff all going on....
Govt will look to get private enterprise to undertake some big projects but private enterprise cant raise any cash so its snookered
The govt will want to do big projects but dropping tax and revenues from sales etc will curtail this work.
Unions are going to have to take a big "bath" on the minimum wage and conditions to get our banana republic competitive again.
If all goes well, only 10% of this will happen and all will be good.....
ive got to stop drinking on Friday nights.....