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Originally Posted by westy73
No we are not in a recession. LAst time I looked interest rates are low, unemployment low and inflation within targets. Recessions effect local economies. Depressions effect Global economies. We are not in a recession however we are terribly vulnerable if it hits as we have deficits as far as the eye can see at least 3 years into the future which will turn even more negative should commodity prices drop and heaven forbid the mining bubble bursts. As you say it is vulnerable in other European economies so instability could mean great negativity in share markets.
On the contrary debt is exactly the problem especially when it isn't being contained. That's the real issue. If I have a loan for a house then yes at that point in time I can service the debt. What if interest rates double ?? then what ? keep spending or are you in trouble ? Have you had to pay mortgage rates above 10% in your lifetime or 15% ?? I know for a fact that answer would be NO.
Yes and about forecasts....the FORECAST was for a surplus of 1 Billion bucks this year....tell me what the ACTUAL result was....well ??? 18 Billion in Deficit.
So forecasts are not a guide at all and if so are very flimsy and are subject to financial events outside of our governments control.
Couldn't agree more with this quote but voting rights are not determined by people's political intellect. Unfortunately modern politicians (especially in the Rudd-Gillard era) think popularity by appearing on mainstream media programs and social media is more important than nuts and bolts policy.
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Unemployment figures are WAY off the mark, missus works? Received a redundancy? Got some money saved? Centerlink wont let you register and while you may not be employed you are technically not unemployed.
Figures would be closer to 10% for those looking for full time employment.