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INFLATION FIGHT TO EASE STRESS: RUDD
Monday, 4 February, 2008RELATED CONTENT
WHAT DO YOU THINK?
Should the government do more to keep a lid on inflation? The Reserve Bank is tipped to raise interest rates to an eleven-year high today in another attempt to rein in inflation.
COMMENTS
First [1][2] LastThe only problem causing credit problems is the fact the Unions and ALP Governments allowed state banks to get values from Union land developers who rig cost/return and land planning developments to benfit future owners that have no money. So for a 500k home I would adjust it to 250k.
simple answer is NO. The problem is in the sales and spending patterns which with the election of the ALP have seen our water, power, and services sold to other union business interest partners who are not elected. Contracts have been signed and now Australia has a future sold to people that have no money (these people borrow and spread risk away from them selves, but it looks like the rest of the world worked this scam out driving money away from the scammers, and adjusting our money ROI rates)
The principal method for slowing inflation in Australia and other first world countries is putting the breaks on the economy by raising interest rates. If people continue to spend out of their means, often on credit card or with loans, and consistently ask for increases in income, then they have to accept some of the blame as well. It is a myth that governments control interest rates and can completely control inflation anyway. We are also facing price increases driven by high oil costs that not only affects the cost of transport, but also plastics, glues, explosives, therapeutic drugs, fertilizers and pesticides etc. We have seen unstable oil prices ever since Iraq was invaded. How can a Rudd's government that never condoned invading Iraq be held responsible for this?
those who think the gov.should keep a lid on the inflation they should read and understand the economic theory of time inconsistency.gov.s can only do so much as conditions permit.
Yes, although keeping a lid on inflation while maintaining economic growth has never been one of Labor's strong points. Now that Rudd has power he needs to stop buying votes with promises of tax-cuts and mindless spending. I think the RBA will keep raising interest rates for as long as Rudd keeps up this inflationary behaviour.
Regardless of whether it is private spending that has led to this problem, the current Rudd government has made it an election pledge to keep interest rates under control. Now that can consist of many things, including incentive (or disincentive) programmes to encourage so-called "working families" to save or rein in their spending, but yet we see little of this from the government so far. I believe it is imperative for the Federal government to start acting upon this issue! Even just outlining their plan to combat inflation in more than general "we're going to fix the capacity constraints" terms (without telling us exactly how they intend to do this without going on a spending spree) would likely give the market some relief.
The government should stop eroding the basic mortgage of our country's wealth. It is very foolish to allow unelected corporations to control our lands.
Anyone who thinks the Government can responsibly do anything to curb inflation in the present national and globalised economic situtation, is having a lend of themselves. Despite our booming materials and energy exports the CURRENT TRADE DEFICIT tells it all. We are living, as a nation above our meanns. We have failed to address the educational and infracture needs of our 'dig it up and ship it out' economy. The Government is captive to the whims and wishes of the big multi-national corporations, all in the name of employment whilst they cream off excessive profits. Inflation is the penalty we must pay for the past and present stupidy of the 'Richard Craniums' we elected to govern us, combined with our own personal irresponsible greed.
If the average person didn't over extend themselves in the first place, these rises etc wouldn't hurt so much. Couples start out wanting families and two cars and the extra family room and they spend too much too quickly instead of getting things more slowly (when they can afford them) and having a head spin. Then when babies start coming along one either gives up working or pays through the nose for child care and they wonder why they struggle. Their inital plans were not really thought out that far into the loan. Stoping and thinking every time you make a purchase, Do I really NEED this? Don't try and think how you can save money. Stop spend and then saving just follows!
When do we stop blaming the government and start taking responsibility ourselves? We can take house prices back to the 70's. Its easy. Just list your house for sale at the price it would have been back then! No? Of course not. Its how it is. No one would do it so that this generation could easily buy because we all want our houses to value, dont we? Hard work and a realistic starting point will get young people inot houses but very few want to start at the bottom with second hand furniture or no furniture our parents and grandparents did. Time we pulled our heads in and realised our greed bought us to this place not the governement.