Smart thinking Volt. Your scenario is very feasible. Timing of the election is clearly Gillard's main concern at the moment. It wouldn't surprise me to see her studying the markets too to fine tune the election date. The only catch though is there are other forces beyond her control that could produce a surprise attack on her strategy. For example, I can also see a scenario where the markets plod along for a while, she calls an election, then the markets plunge unexpectedly, perhaps even a significant and alarming smash. Then people's feelings will turn against the government and eject them. Time will tell which scenario if any comes about.
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