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The RBA makes a lot of noise about containing inflation,yet Canada with similar inflation has much lower rates.What's the difference?Well we continue to have a huge balance of payments deficit even with record sales of resources.It is now well over $600 billion.Our higher rates suck in foreign capital to try and offset our lust for plasmas and the like.
Now Kevin is just scapping Howard's pork barrels,so he can replace them with his own at an opportune time nearer the election.Kevin has also his own representitive on the RBA who has more than likely given the green light to our recent surge in rates.Kevin is playing with fire here since,NSW will lead the way in an economic downturn which will affect at least 40% of our economy.Kevin again is relying on the electorates short memory.Do the nasty business early and hard, then he will have lots of pork in his barrel come the next election.
The question is whether or not they have the economic nous not to cut back too much but also fix our ailing infrastructure and skills shortages,that are primarily a responsibility of our State Govts.No country has ever shrank into greatness.