alp damage to interest rates / aussies, page-4

Country Writer

Re your post which included;
"The ALP has distorted interest rates and kept them artificially high in Australia. ..."

The Reserve banks Chart Pack is a rich data source for such considerations.

The RBA's latest chart pack shows the cash rate rose every year under John Howard after about mid 2002 - something that continued until the full onset of the GFC was apparent & before Kevin Rudd's economic stimulus came into effect.

That same chart pack also shows that under the Rudd- Gillard Govt.s the cash rate has fallen to just 3.5%.

Under the Howard Govt. private indebtedness also rocketed to about 160% of disposable incomes; where it halted under the Rudd Govt. & now appears to be falling slightly.

Another matter that needs to be considered is who is seeking money in our economy & for what purpose - as we all know our mining sector has had its BIG hand out for years; dwarfing national public debt arising due to the GFC & mostly directed at public infrastructure projects such as the NBN, roads, ports, rail, ...

Further to thses matters, recently we have learned of the extent to which the LIBOR has been affected by actions that have nothing to do with Australia at all - Barclay's is facing the music on that one.