Two stories in The Australian Financial Review and other papers this morning illustrate just how out of touch both the paper and the Australian trade union movement are with the economy.
Australian economy
Forget the pundits, this jobless data is positive, rates will rise
Forget the media reports; the Australian economy has created over 65,000 jobs in the last two months: pencil in a December 1 rate rise from the RBA.
Megalogenis: What The Communist Manifesto can teach us about Australia’s economy
George Megalogenis revisits his university “required reading” list and finds many of the predictions made in Marx and Engels’ Communist Manifesto have borne fruit in the Australian economy of today. Let the ruling classes tremble!
RBA lifts growth forecasts as economy on the up and up
The Reserve Bank has lifted its growth forecasts for the Australian economy and made it clear that interest rates will rise as the economy resumes its expansion.
Political economy: In Australia’s recovery, the winner is Rudd
A strong economy will allow Kevin Rudd again to campaign as a fiscal conservative, as well as the messiah who protected Australia from world depression, correction, severe downturn, writes Henry Thornton.
Gittins: Have a flutter on the economy
If we can afford to gamble A$137 million on the Melbourne Cup, then we can afford to raise interest rates 0.25 percentage points, says Ross Gittins. Especially since we probably won’t see another rise until February.
Kelly: How next year will unfold for Wayne and Kevin
Avoiding a recession has become both a gift and a burden to the Rudd government, writes Paul Kelly. Expect a battle between managing the economy recovery and spending on big ticket election issues — climate change, health and households. Can Swan reign in spending?
Political snippets: Good news from China, bad news from Copenhagen
Some good news from China on the economy, but some bad news from Copenhagen on the prospect of positive outcomes from the Copenhagen climate change talks. And au revior to the Breakfast Media Wrap.
Throwing the switch to recovery
Today’s new economic forecast means the Federal Government will finally have to stop saying things like we’re “not out of the woods yet” or have “a long way to go” and shift its rhetoric into recovery mode.
Swan: we are “fair dinkum” about sticking to our fiscal strategy
Wayne Swan has unveiled a significant improvement in the Government’s fiscal position from next year, with this morning’s Mid-Year Economic Forecasts showing far higher economic growth and lower unemployment than the Budget forecast back in May.
Lending a cot case, or is it?
If you had to judge the health of the Australian economy by the amount of lending going on, you’d be entitled to call for an ambulance to revive a fading patient after looking at today’s report from the Reserve Bank on private credit for September.
Unsure whether to be happy or sad over the rising dollar?
With news that the Aussie dollar has dropped under 90c today, Tim Boreham writes on the changes — both good and bad — that a strong Aussie dollar brings. It’s not the doom and gloom that many are predicting.
Colebatch: Stop tooting your own horn Ken Henry, the economy ain’t that good
If the Australian economy passed the GFC test as Ken Henry claims, then we should expect government guarantees whenever financial markets cut off funds to Aussie lenders. This isn’t something to be proud of, writes Tim Colebatch.
Kohler: The disaster of a strong Aussie dollar
The rising Aussie dollar may be catastrophic for the manufacturing industry, writes Alan Kohler, and will seriously impact engineering and construction work. How will we cope?
Stutchbury: Stuff the GFC, pay attention to China
Will a lack of adequate infrastructure slow Australia’s economic growth? Australia needs to embark on a new wave of supply-side reform, one that actually includes cost-benefit analysis, writes Michael Stutchbury.
Australia’s golden age extends to 2050
Don’t hide away your tuxedo yet, because Treasury Chief Ken Henry is declaring that Australia’s economic prosperity can stretch to at least 2050, as long as we use the population boom to our advantage.
Australia: good at being poor, crap at being rich
Post GFC Australia is, well, pretty much the same as pre GFC Australia. The resources boom is still bubbling away, our relations with Asia continue to be crucial. Now, how will we cope with the prosperity?
RBA: “possibly imprudent” not to lift rates
The Reserve Bank lifted interest rates because it might have been “possibly imprudent” not to do so — quite a telling phrase for such a conservative organisation.
How Australia dodged the GFC bullet
Pat on the bank everyone, Australia was the only developed country to miss a technical recession in the GFC. Major shout outs go to China, the banks and our growing population. But will other nations copy our recovery?
China, the dollar and feds’ stimulus the shape of things to come
The shaping factors for the Australian economy and business over the next year were seen yesterday: China, the strength of the Aussie dollar and the federal government’s stimulus spending produced good and bad news for some leading companies and the economy generally.
Ross Gittins’ efficient markets furphy
Ross Gittins reckons libertarians and their evil theories, especially the efficient markets hypothesis, are to blame for the global financial crisis. Sinclair Davidson begs to differ.
Henry: Stimulus cut will kill jobs
The removal of the governments fiscal stimulus now would cost Australia 100,000 more jobs, Treasury Secretary Ken Henry has told the Senate Economics Committee this morning.
Australia: the Switzerland of the South Pacific
It’s Australia’s moment in the global economic sunshine, with strong job figures, and a rising market. “In lifting interest rates, the RBA has succeeded… the Harbour Bridge as the new Australian icon”, writes Michael Evans.
Stimulus isn’t money for nothing. Time to wind it back
Calls are mounting for the Federal Government to reduce its wide-ranging fiscal stimulus package as economists continue to upgrade the prospects for the Australian economy.
Spiralling dollar spells current account chaos
Standby for a good, old fashioned current account scare, as the Australian dollar continues to rise as it did last night in the wake of the Reserve Bank rate rise.
