Fundamentals haven't changed, page-412

Governments of all persuasions have always dragged their feet when it comes to budget deficits because the simple solution is more tax which is political suicide whichever way you slice and dice it. You can't tax the poor, they are taxed hard enough and don't have any money. Before you start taxing the middle class you need to get rid of middle class welfare which will see you get swiftly booted out of power and don't try taxing the rich because they will bite back (remember we live in a trickle down economy).

Household debt has been on the RBA radar for quite a few years now and I'm sure it has given the bank governors some sleepless nights. The problems will come when people stop spending. Where I live in Perth I don't see many obvious signs of people retreating into spending shells and we are supposed to be the hardest hit state due to the "end" of the mining boom.

Actually I was in the queue at the bank today and I was surprised to see one of the resident beggars in queue in front of me. Jovial and talkative young guy. He didn't have a bank card so just recited his account number to the teller and withdrew $15.

When a country has beggars with bank accounts you know it's still very much in business. We remain the lucky country and hopefully we can keep it that way. Esh