I'm still trying to see any difference between Tories & the Woke. Anyone know ?

Paul,
>Knowledgeable economic sources are now telling us that today's inflation and the
>subsequent lifting of interest rates in Australia has more to do with the trillion dollars of
>irresponsible wasteful borrowing, and spending on their mates from the Big End of
>Town, by the Tory government of Morrison than any war or any external forces.

Beware of foolish economic sources who claim to be knowledgeable. They are often dangerously wrong! A reality check is often needed, and those ones completely fail it.

Hi Aidan,

I thought "knowledgeable economic sources" would sound more creditable, that the usual line trotted out by the Forums conservative mob..."I've gotta mate". The only difference between their's and mine, is their's is from the right side of the street, and mine's from the left.

Paul,

Either your "economic source" is a pinhead or you have half-arsed it again.

Heavy fiscal spending is justified when there are strong recessionary influences such as the pandemic the effect of which was moderated by wage support, however, when the economy recovers, then this spending should be cut off and the budget runs in surplus.

The economy began to grow again in March/April 2022 which is when spending should have been cut. The coalition handed the economy in a good state to Labor in May 2022 just as inflation was starting to rise.

If labor had been even vaguely competent they would have cut back spending immediately. However, they continued spending like drunken sailors and inflation accelerated. Labor has been in power now for 9 months and they cannot blame the inflation and rising interest rates on the previous government.

Your other thread where you suggest a "future fund" to borrow $billions and spend it on building is jet fuel for inflation and one reason why the gangreens should never be let loose on the economy.

SM,

We let the incompetent Coalition loose on the economy, and how did it end up in, a trillion dollars of Liberal Party debt, with nothing to show for it. Correction, Gerry Harvey pocketed $12 million, and the Big End of Town pocketed the rest!

Any comment on the corrupt NSW Fiance Minister Turdhope, he kept it all in trust, his family trust that is, to benefit himself!

Paul,
Crap is still crap even if you manage to make it sound more impressive. At least having a mate appears to be authentic.

Shadow is half right. Tightening fiscal policy is a much better way of controlling inflation than raising interest rates is. Alas the Libs, when in power, resorted to so many false economies that increasing spending had become almost unavoidable. But raising taxes would have had less of an adverse effect on the economy than raining interest rates.

But this inflation is rather unusual in that it was caused by the Ukraine war resulting in a huge jump in energy prices, the likes of which we haven't seen since the 1970s. Floods also cased a rise in food prices.There's a limit to how much monetary policy (and indeed fiscal policy) can do to fix it, as they do very little to fix the underlying problem.

Generally money spent by governments has inflationary effects straight away rather than delayed effects. The Covid Lockdown did result in some delayed effects, but it's peanuts compared to those from the Ukraine war, which even dwarfs the Libs' wasteful failure to spend enough on things that ultimately pay for themselves.