Weirder and weirder...

from the ABC

Banana growers reject rate hike responsibility
Queensland's banana growers have angrily rejected claims that high banana prices could lead to a possible rise in interest rates next week.

The quarterly Consumer Price Index shows annual inflation now running at 4 per cent, partly due to the high price of petrol and bananas.

Economists are predicting interest rates will go up next week as a result.

Jan Davis from Growcom says many growers are still recovering from the effects of cyclone Larry and that linking bananas to a potential increase in interest rates is illogical.

"If we, and I don't, but if we did accept that this logic was true and that one of the reasons interest rates are predicted to go up next week is because of the price of bananas, when bananas come back onto the market, are we going to see a decrease in the interest rates as a result of that? I think it unlikely," she said.

Fron the ABC

Howard sees fruit's inflation impact diminishing
The Prime Minister is predicting banana prices could fall slightly in the next three months and says the cost of the fruit will not impact inflation in the next quarter.

The higher price of bananas and petrol pushed up inflation in the three months to June and is expected to lead to a jump in official interest rates.

.....

He says the crop is recovering and bananas will not impact inflation in the next quarter.

"Not only did bananas go up but all the other fruit went up as well," he said.

"I know it's crazy but the good thing about that is that in three months' time that will be out of the system because they're not going to go up by the same amount again.

"They hopefully might have come down a bit so the movement will be in the right direction."

read more at the ABC

From the ABC

Rate rise would 'breach' Govt pledge
Labor housing spokesman Senator Kim Carr says another interest rate rise would be a breach of the Federal Government's undertaking at the last election.

The Reserve Bank is tipped to lift interest rates on Wednesday, in part due to the rising price of bananas.

Prime Minister John Howard will today talk to banana growers who lost crops in cyclone Larry in north Queensland.

Senator Carr says at the last election, the Liberal Party gave everyone the impression that under a Howard Government interest rates would not go up.

He says mortgage holders would be under even more strain.

etc...

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Gus would suggest that according to the rules set by the capitalist system, the RBA has no choice but to increase the lending interest rate by that much —
but if it does it is likely to compound the problem of inflation in the short/medium term —
while if it does not raise the interest rate, it's a sure sign it is in bed with John Howard to save his bacon and his rotten-to-the-core promises...

From the ABC PM to stay on for next election Prime Minister John Howard has decided to contest next year's [http://www.abc.net.au/news/newsitems/200607/s1701074.htm|election].
Mr Howard has been under pressure to stay and is expected to make the announcement later today.
He is travelling to far north Queensland to address the banana farmers recovering from tropical cyclone Larry.
Mr Howard has written to Coalition MPs and senators saying he has decided against retiring.

From the ABC

PM's decision to face electorate welcomed
The federal Opposition and Coalition MPs have welcomed the news that the Prime Minister John Howard will fight the next election.

Mr Howard has told his Liberal Party colleagues that he intends staying on to fight the next federal election and is expected to make the announcement later today.

Mr Howard has written to Coalition MPs and senators saying he has decided against retiring.
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How long is a piece of string.... Gus express regrets that Mr Howard has made this unwelcomed decision to stay on... Knowing the twister, he knows he can pull this one of hat... Beware.