I see even Prime Minister Julia Gillard can no longer resist doing what she’s not supposed to do, i.e. advise the Reserve Bank of Australia to cut the cash rate – just as I’ve been suggesting since 2005.
Inflation’s hasn’t been the problem, guys! Mind you, it will be eventually [….. and how!]
Now that you’re at it, make the rentiers pay their way, Julia!
They are an untapped horn of plenty–more than one-third of the economy–the answer to all your revenue prayers.
High interest rates are a good thing for anyone who isn’t a rentier.
The current real estate drops are due to uncertainty; the market is spooked. Nothing’s quite right. An Interest rate drop now is as likely to reduce confidence as it is to increase it.
So you’re saying high interest rates are a good thing, Chris? For whom? They won’t curb the real estate bubble: it’s started correcting itself.
Reducing the interest rate is like a drug.. The hit is great, but soon enough you need another, and another… and in the end you suffer for it.