Interest rates and lessons not yet learnt

From today's Crikey email:


Kilgour: Dumb, dumber, downright stupid and Downer
Adam Kilgour writes:

John Howard suggested last night on The 7.30 Report that Australian interest rates are rising in Australia because of the US subprime mortgage markets. So why are interest rates falling at a rate of knots in the US?

He also points to other events out of his control that impact the economy. Yet he still maintains on the eve of the 6th interest rate rise this term that he will keep interest rates down better than a Labor Government. Dumb.

At least Wayne Swan was honest about the situation in the last 24 hours saying that you couldn't make promises on interest rates. I'm tipping voters will believe Swannie over Howard on this one.

So how would Peter Costello, the economic wonder boy, keep rates low if re-elected? By making billions of dollars of spending promises? Dumber. If a financial tsunami is rolling in like Peter warns, why is he blowing the surplus like a 1999 dot.com burning cash? And if all that cash is really going to flow in all its abundance, why are we waiting until 2013 for the $34 billion tax cuts?

One thing's for sure. The winner of this election will spend the first year junking a big bunch of spending promises if they are responsible. Howard figures he's not going out with one penny in the kitty. Labor feels they have to follow. The Pork Barrel meters the daily press love so much are blown out already, less than halfway through the campaign.

Mark Vaile is still not convinced Climate Change is being impacted by human activity. That's downright stupid. Visit any farmer or regional centre and ask them what they think about that absurd statement.

Drought and water shortages. Bushfires and twisters. Mark must have seen some of these on the famed Wombat Trail. I thought the Nats' campaign was about being young, funky and relevant.

And where is Alexander Downer in the campaign? Back in Adelaide making sure the jailer doesn't fall asleep and let David Hicks escape from his cell until after polling day?

If he succeeds, he's a sure bet for South Australian state Liberal leader, his new dream job.