As I wrote recently, there are few greater threats to a democratic nation’s economy than a socialist-left government on the ropes. Already addicted to spending other people’s money, there’s no end to the river of gold they’ll pour down the toilet in a futile effort to buy another election. ‘Dictator Dan’ Andrews has left Victoria once again up Labor Creek with astonishing levels of debt from its big-spending, vote-buying promises.
Federally, the Albanese’s spendthrift addiction was bad enough to begin with. As they grow more and more frantic, with an election fast approaching and their poll numbers plummeting, they’re spending up bigger than ever.
As a consequence, ironically, they are driving their desperately needed interest rate cut further and further off.
Despite uncertainty on the RBA cutting interest rates in its February meeting, Deloitte partner Stephen Smith expects the cash rate to fall from 4.35 per cent to 2.85 per cent by the end of next year, with the average mortgage holder to be $8000 better off.
But too far off to even have a hope of saving Labor’s bacon. No matter how much Treasurer Zippy crosses his fingers.
Jim Chalmers on Tuesday moved to put the spotlight on headline inflation, which is expected to again be below the 2 to 3 per cent target band, despite the RBA being more focused on underlying prices growth when considering interest rates.
The Treasurer also pre-empted expectations that headline inflation would rise slightly as more Australians come off cost-of-living support by declaring “any headline inflation number with a two in front of it will show that inflation has more than halved since we came to office”.
Until Labor embarks on yet another round of pork-barrelling under the guise of ‘cost-of-living support’.
Finance Minister Katy Gallagher has left the door open for further fiscal measures to offset inflation in the government’s next budget, scheduled for the end of March.
Inflation figures are expected later today before a key meeting of the Reserve Bank board in February.
There is an open question, however, as to whether the government would actually deliver that budget given Anthony Albanese could call an election for April and parliament would be dissolved before that budget date.
The Prime Minister last weekend declined to say explicitly that his government would hand down a budget, merely saying it was “scheduled”.
“We are mindful of the economic conditions, how people are feeling out and about and whether there are any further responsible decisions we can take then can assist households as we navigate this time,” Senator Gallagher told ABC RN.
In other words, churning taxpayers’ money back at them to try and compensate for the results of Labor spending too much of taxpayers’ money and making lunatic policy decisions. About energy in particular.
In Australia, increasing energy costs are compounded by government measures to obscure the extent of the cost surge. Billions of dollars are borrowed to provide subsidies that partly offset policy-driven price increases. While this may temporarily alleviate the burden on consumers, it significantly adds to commonwealth debt and the growing cost of servicing this debt. Once subsidies are removed, energy prices will rise again, but the public will be left with both higher energy costs and the enduring interest payment burdens […]
As well observed by William F Buckley, “only government can cause inflation, preserve monopoly, and punish enterprise”.
Government: is there anything it can’t screw up?