Coalition trying to cause a recession

[freediver]

http://www.theaustralian.news.com.au/st ... 71,00.html

Dr Henry's comments on tax came as he maintained that enough forces were supporting the confidence of consumers and business to allow Australia to dodge a recession despite the impact of the financial crisis.

Australia could weather the crisis without a single quarter of negative growth, he said.

But Dr Henry warned that Australia could still talk itself into a recession.

He defended updated budget forecasts that growth would be maintained at 2 per cent or more this year and next against Coalition accusations that it had been the subject of government manipulation. "These forecasts were produced by Treasury with no political manipulation and no manipulation from the Government," he said.

Dr Henry said it would have been better if the attacks had not been made, underlining that confidence was at the heart of the global economic slowdown.

[Jovial Monk]

Of course, Swan today said the 2% growth forecast is now too optimistic.

This is a GFC of a type not seen before so we are all flying blind. Thank Christ Costello is no longer Treasurer!

[Hebe]

Yeah, the Coalition is doing its best to CAUSE panic by flapping about a deficit. I'd rather have a deficit than a depression.

They have nothing else.

[mantra.]

Regardless of what the coalition are saying - we are headed towards a recession anyway. Talking about it of course helps destroy consumer confidence, but it is more than that - too many businesses and individuals are in too much debt and the collapse of ABC and other institutions are the emerging signs that we can't meet our obligations.

The Rudd government has overcommitted itself and months ago Rudd should have been strong and brought in means testing and not obligated our country to propping up failing businesses. The banks have virtually stopped lending money for major projects and are stashing their cash away while trying to assess their losses, which are emerging as quite large. How much superannuation has gone down the gurgler in the last few months - around $100 billion - probably more? This was going to be our insurance for a rainy day.

Rudd will have no choice but to go into deficit - but as Hebe said - rather a deficit than a depression, although we will probably end up with both.

[boxy]

Talking about it of course helps destroy consumer confidence...

Is that a bad thing? Continuing to consume despite things about to go pear shaped... that seems like a worse thing.

[mantra.]

Is that a bad thing? Continuing to consume despite things about to go pear shaped... that seems like a worse thing.

I think the economy should have been cooled down a couple of years ago. It's not a bad thing that people are spending less, but businesses do get panicky and unemployment begins to rise - that's a downside.

We need to get back to basics and it's about time there was some regulation brought back into the banks, corporations and markets. It's been out of control for too long and people need to tighten their belts.

[Hebe]

It's been out of control for too long and people need to tighten their belts.

Yet at the same time we're being told to spend! I'm trying to do both - no wonder I'm confused.

[mantra.]

Yet at the same time we're being told to spend! I'm trying to do both - no wonder I'm confused.

Yes it sounds confusing - but maybe it's got to do with living within our means. For the last few years there has been such easy borrowing and every man and his dog, even if they're broke with bad credit, has been able to borrow money for anything they want - usually technological toys or new furniture and credit cards have been handed out like lollies.

So many people have lumbered themselves with huge mortgages, the latest model car as well as everything else that catches their eye. We just need to slow down and maybe start repairing our existing goods or going without. Our landfills are overflowing with broken toys and cheap furniture that some people haven't even started paying for yet.

Our generation is having difficulty paying for all this stuff - so our kids are going to be lumbered with these debts in the long term. Howard promoted consumerism as the greatest contribution to our economy - which in theory is true, but in practise is impossible to maintain. Our foreign trade debt is $600 billion - probably more now. We are second to the US in borrowings. Their economy is officially in recession - so the likelihood is we will be shortly as well.

[Jovial Monk]

Turnbull won't care what he damages to become PM, the Party or the country. Fortunately he is inept and losing the Party support

[Hebe]

We just need to slow down and maybe start repairing our existing goods or going without.

Very good point. I used to mend my socks - better get the needle out. And the built-in obsolescence of machinery, whitegoods etc. is infuriating. Our dishwasher just packed it in, and we're not replacing it.

Now my hands DO say housework!