From the old Auntie

Interest rates jump to 6.5pc

The Reserve Bank says it is raising interest rates by 0.25 per cent to 6.5 per cent, their highest level in 10 years.

Economists had widely tipped the central bank would increase the rate after higher-than-expected annual inflation rate figures for the June quarter.

The rates hike is the fifth since the 2004 election.

The decision came after the US Federal Reserve announced it was keeping its own interest rates steady at 5.25 per cent for the ninth time.

That decision came against a backdrop of volatile financial markets and rising default rates in the US sub-prime mortgage market.

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Gus: According to what our little UnAustralian once said, the higher the interest rates the better the economy is performing... But because your mortgage is going to cost another 40 bucks a month or a week, depending on your unfathomable borrowings, he will blame everybody else for this, including the union bosses, who of course have nothing to do with the doubling of housing cost in just a few short years...

In the same sneaky breath, he did announce that under Labor the interest rates would be much higher — which if normal Johnee-calculations of better-economy-higher-interest-rates are applied would show the economy would be going more gangbusterer under Labor... But then, since he's shortchanged the States for so long and created an economy that trades in reverse gear, he'll blame the States for borrowing a few bucks...

Beyond that, the amount of red herrings Johnnee has thrown at us is so humongously huge that the smell is now whiffing from everyone's hip-pocket.

But don't chastise him too much for telling porkies... Since he blames everything else for whatever, including the whoppers of war, he's got to be seen here as a small inanimate decorative statue in the political landscape — like a Mankenpiss that does not know where the water of the fountain is coming from...

Just don't vote for him though...

From the SMH

And he claimed Labor's policy to dismantle the Government's workplace changes would put pressure on interest rates to rise further.

"Changing industrial relations will put upward pressure on interest rates," he said.

"What this decision by the Reserve Bank does is to place economic management once again front and centre in the political and social debate in this country.

"It's a reminder that even in a strong economy there are pressures and challenges, which if not properly managed, can undermine the fundamental strength of the economy. There is nothing in today's decision which suggests that the economy is weakening. Rather the very strength of the economy is identified by the governor [of the Reserve Bank] as the principal reason why there are pressures necessitating this interest rate adjustment."

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Gus: see what I indicated in the blog above: the little Mankenpiss contradicts himself IN THE SAME SENTENCE just to bag Labor (no other purpose)... without knowing where the water is leaking from...  

Poor Johnnee: passed his used-by date and still tries to sell himself as a wiz... but achieves nothing more than a wheeze...

Apparently changing the industrial relations would put upward pressure on interest rates, meaning that changing the industrial relations would make the economy go even better... as the strength of the economy would necessitate this interest rate adjustment... 

 

From the ABC

Federal offer to help mill 'political extortion': NSW Govt

Posted 26 minutes ago

The New South Wales Premier, Morris Iemma, has accused the Federal Government of an action bordering on corrupt behaviour, in its offer to help a timber mill in a marginal seat.

The Federal Government has offered the Canberra timber mill, in the Liberal-held seat of Eden-Monaro, a $4 million rescue package if the NSW government guarantees long-term contracts for the mill.

Mr Iemma has accused the local Liberal Federal member, Gary Nairn, of trying to extort purchase contracts from the state government in return for the grant.

"There are very clear guidelines through ICAC [Independent Commission Against Corruption] about this sort of behaviour," he said.

"You don't award contracts or tenders on the basis of the whim of a politician."

"I'm saying to Mr Nairn and indeed to Mr Howard - tread very carefully here - because the New South Wales Government, indeed any government, we are not going to award contracts or tenders on the basis of a politician saying it's got to go to that company.

"Where do you draw the line. It's bordering on corrupt behaviour."

 

Heffernan accused of impersonating Joyce

The Opposition has raised allegations in the Senate about Liberal Senator Bill Heffernan impersonating Nationals Senator Barnaby Joyce.

Labor Senator Robert Ray also asked if an investigation had been launched into claims Senator Heffernan pretended to be a member of ASIO while speaking to the manager of Queensland's Cubbie Station.

Senator Ray says Senator Heffernan's sense of humour could get him into trouble.

"Could he also confirm that Senator Heffernan has boasted that he impersonates Senator Barnaby Joyce... and rings Queensland constituents of Mr Joyce and asks them what they think of Senator Heffernan," he said.

But Senate leader Nick Minchin made light of the claims.

"I can confirm that Senator Heffernan has a remarkable and attractive sense of humour, which endears him to all his colleagues," he said.

"I can also confirm that Senator Joyce has a distinctive voice that I would not have thought was capable of being impersonated."

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Gus: has anyone out there got any dirt on good ol' Senator Heffernan?

I'm confident there would be a few people, even in his own party — the Liberal party, who got the rough end of the pineapple when dealing with him, say in the 1980s and 1990s?... and they're too afraid or too ashamed for speaking out...? May be one day, their conscience might become stronger than their secrets...? Sense of humour? Hum...

RBA signals another rate rise
Inflation worries: The RBA has issued another warning on interest rates

The Reserve Bank of Australia (RBA) has given a clear signal that interest rates will rise even further on the back of higher inflation.

After raising the official cash rate to 6.5 per cent last week, the central bank has today indicated that interest rates may have even further to go.

In its quarterly statement on monetary policy released today, the RBA revised its inflation forecast upwards.

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Gus: I don't want to say I told you so... But I think I already mentioned somewhere that Rattus was lucky that the RBA did not put the rates up by at least .5 of a percent at the last instalment... It's called creaming the poor — the bottom of the barrel — those on credit to the eyeballs because they can't afford to pay for minimum standard of living any other way.

Howard boosts climate change funds by $70m

Prime Minister John Howard has announced more than $70 million for international climate change initiatives.

Mr Howard says the Australian Government will commit $50 million towards an Asia-Pacific partnership on clean development and climate.

The Government will also give more than $15 million to a forestry skills program in the Asia-Pacific region.

Mr Howard says climate change will be one of the important agenda items during this week's APEC leaders meeting.

However he says it is unrealistic to expect the APEC summit will come up with binding targets to tackle greenhouse gas emissions.

"We must be realistic about what can be achieved on climate change," he said.

"We won't reach agreement nor do we imagine for a moment that we could reach agreement on binding targets amongst the member countries of APEC.

"But we can reach a framework agreement if we work hard enough on the shape of a post-Kyoto approach."
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Gus: why have got "to be realistic" (meaning weak-kneed) on Johnnee's furphied understanding of climate change? "we won't reach agreement"? What a lot of garbage from the PM... Stronger effort has to be necessarily realistic and an agreement has to happen realistically no matter what — like signing Kyoto and preparing for the next stringent agreement. Because agreement on climate change NEEDS to be made... Yes, this announcement by our Prime Minister is a small step for his hubris but a giant step backward for the environment...

PM 'could never deliver' on 2004 rate pledge

Opposition Leader Kevin Rudd says the Prime Minister has broken a promise on interest rates that he should never have made.

In the lead-up to the last election, Liberal Party advertising promised the Coalition would keep rates at 30-year lows.

John Howard has tried to distance himself from that pledge, but it has now been revealed that he made the same promise days before the 2004 poll.

Since the promise was made, there have been five rate rises.

Mr Rudd says the broken promise is a blow to working families.

"What Mr Howard said before the election was something he could not deliver on, but he told the Australian people he could," he said.

"He said he'd keep interest rates at record lows, he knew he couldn't do that.

"He said he'd keep them - out of his own mouth - at 30-year lows; he knew he couldn't promise that."

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Gus: the PM erred with red herrings and we knew that... But is took a while for the Aussie electorate to see through the master painter of herrings in red... And we're not home yet! Hopefully the collection of John Howard's red herrings will stop on November 24...

See the cartoon at the top of this line of articles...