Re: Chance of recession if Labour wins???
In fact the spending they have both promised , will undoubtedly add to the dilema .
Negligible spending on priorities is at a peak ! Instead of trying to save lives on the roads they are putting the money in pockets , which only ends up in some company or corporations coffers . usually a bank or other lender ( Visa etc. ) or the local Myers or Woolworths etc. , it can get worse , like the money that ends up in pokies , you know the nappy money ..........
After 11 years the Libs have stumbled across the fact that Australian roads are atrocious , our hospitals are in disrepair . The list could go on infinitely I'm sure , especially if we start on about transport routes for all the new developments and housing projects , isolated from amendities or wharves that are ridiculously inadequate ......... and we could keep going ......
But , then we must look at the fact that a lot of the blame can also be laid squarely at the feet of state Labor governments , who are also so far off the mark that it makes a trip to Mars more like a walk up the street in comparison .
Then ..... we can start blaming banks and lenders , for letting over zealous plastic carriers , go on spend binges , where the majority are incompetent money managers .
Of course , then we should blame ourselves for being a " I want it now " generation , prepared to ignore the warning signs , just so we can watch the footy on a 109" flat screen . The money would have been better spent on RIO , BHP or
FMG shares . Unfortunately the theory of putting hard earned money to work , has fallen to the wayside nowdays , instead they spend it before they have saved it , that's letting other people put their money to work for them , usually a bank or foreign corporation . Either way the money doesn't benefit the countries economy , the benefits go elsewhere , like China , Taiwan , England , USA or India . When these stop receiving any benefit and stop production and lending .......... ouch !
That could lead to R ....Re ....Recess....Recession !
The mining boom will keep the wolves at bay for at least decade or so yet , from our shores , but two of the above mentioned countries are already in strife .
The USA now already dropping rates faster than you can feed pellets to the chooks , with the BoE poised to do the same . So expect a softening , like melting butter .