Irish Guinness

Just watched our prime minister Kevin Rudd, say how sorry he is, that rates have gone up yet again,

I do feel so sorry for young people trying to buy their first home in Oz <<<<<

herrchook

Absolutely, we just managed to secure a fixed rate with about 3 hours to spare before our lender increased their rate too so that's saved us $50 a month.

It must be an absolute nightmare for those buying for the first time or with little or no equity. How on earth are people still managing to spend so much when interest rates are so blinking high?

Trixy

Kevin is good at saying sorry isn't he? Sorry really helps - not.

Irish Guinness

yes he seems to say sorry an awful lot>>>>>
I think he likes the word

Irish Guinness

Well done you... getting in before the rates went up.

I wonder how most people will feel now coming to live in oz?

Vim Fuego

If this forum is any indicator then most will whine about everything being 'different' and get on the nerves of perfectly happy people.

First one to suggest what the government should realistically do as an alternative wins a prize.

Bloody gorgeous day out there, but I'm out of ice cream

Hey, the cricket is being shown live all the way through, bonus

busterboy

Well....I am out of peanut butter. Lovely day here too.

Economically the rates need to rise to bring spending into control. I cannot see anything else that will influence spending and keep some type of check on inflation other than this obvious measure.

Trixy

How about slugging us all with GST? I'm tired of buying plasma TVs every time I go out and being the only one keeping that inflation rate high. I need help in my endeavour to bring down the Australian econmy with my evil spending ways.

Amazulu

Rasing GST would have an effect on inflation. Raising interest rates only affects a third of the population. Raising GST would affect the whole country and would be more effective IMO.

@boy

Correct. Don't forget folks that the official cash rate going up or down is completely and solely under the control of the RBA.

and on that subject, the latest relevant article there.....
http://business.theage.com.au/rba-fl...0304-1wsq.html

bcworld

And any business that services debt in order to invest in capital expenditure, expansion plans etc. Raising GST has no effect on business.

Trixy

Great comfort to know the guys at the RBA are in control of the econmy..

busterboy

Good idea! Big Kev might have a job for you!

worzel

Agreed, though it could just as easily be income or any other tax. The advantage of doing it through tax rather than interest rates is the government gets to bank the extra and stick it in the Future Fund but that is an out of date policy it seems. My personal preference would be to raise the Super contributions from 9% to 10% given all the warnings of so many people facing being poor in retirement.

busterboy

Again a very good idea and one where it would reduce our spending today for a stronger future tomorrow.

We have a bit of talent on this forum and no mistake...