Australian Politics Forum - Low interest rates

cods

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Re: Low interest rates
Reply #15 - Aug 6^th, 2013 at 8:55am

perceptions_now wrote on Aug 5^th, 2013 at 11:15pm:

miketrees wrote on Aug 5^th, 2013 at 10:33pm:

Zero would lower the $A and give exporters and manufacturers a fighting chance.

Oh yes that's the working part of Australia the bit that leftards have no understanding of.

It ain't necessarily so!

Both the Euro & the British pound have been considerably lower against the US$, the oZ$ and other currencies, BUT THAT HAS NOT SEEN A REBOUND IN THEIR ECONOMIES.

The US$ has also been lower, without any noticeable Economic rebound & now, when their money printing has been at its highest, the US$ has actually rebounded higher - GO FIGURE!

i saw where retail here has ground to a halt..been slowing since gillard made her astounding statement.about sept.. and of course now its almost stopped..

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perceptions_now

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Re: Low interest rates
Reply #16 - Aug 6^th, 2013 at 11:08am

cods wrote on Aug 6^th, 2013 at 8:55am:

perceptions_now wrote on Aug 5^th, 2013 at 11:15pm:

miketrees wrote on Aug 5^th, 2013 at 10:33pm:

Zero would lower the $A and give exporters and manufacturers a fighting chance.

Oh yes that's the working part of Australia the bit that leftards have no understanding of.

It ain't necessarily so!

Both the Euro & the British pound have been considerably lower against the US$, the oZ$ and other currencies, BUT THAT HAS NOT SEEN A REBOUND IN THEIR ECONOMIES.

The US$ has also been lower, without any noticeable Economic rebound & now, when their money printing has been at its highest, the US$ has actually rebounded higher - GO FIGURE!

i saw where retail here has ground to a halt..been slowing since gillard made her astounding statement.about sept.. and of course now its almost stopped..

Cods,
The major reasons for the slowing OZ Economy are the same as the reasons for the current Global GFC and those are reasons 1-3 in the following post!
http://www.ozpolitic.com/forum/YaBB.pl?num=1375696410/2#2

In terms of timing, Australia was one of the later countries to feel to feel the effects of the Global GFC, as -
1) We were one of the major suppliers of resources, such as Iron & Coal, to the developing world (such as China), which were the last to feel the effects of the GFC, so we also came in late.
2) We also went into the GFC in a comparatively good position, relative to most other countries, in terms of Debt.
Our lower Debt to GDP ratio was mainly attributable to to the Howard/Costello Liberals measures taken during 1996-2007 and the Peak Boom years of the Baby Boomer Boom, which went for a similar time frame.
However, whilst the Liberals did restrain Debt during that period & did a better job than most other countries, they and all other OZ Politicians over the last 40-50 years, did not do enough, nor did they or the rest of the world's Pollies set the Global structure properly to avoid major Economic problems, due to -
1) The Baby Boomer Bust
2) Energy Supply shortfalls & Price increases.
3) Climate Change.

In addition, the Labor governments between 2007-2013, whilst they did avert an earlier Economic regression, by implementing various stimulus programs, they did not change the final Global outcomes, which are still accumulating in the system.

In any event, the time is quickly coming, where the "piper will call & announce payment is due for past "indiscretions" and all sectors will have to carry their fair share of the pain!

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perceptions_now

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Re: Low interest rates
Reply #17 - Aug 6^th, 2013 at 8:43pm

Low rates due to slowing economy: Howard

THE Labor government is deluding itself if it believes lower interest rates are a sign they have the economy well in hand, former Liberal leader John Howard says.

In 2004 when Mr Howard was contesting an election as prime minister, he said interest rates would always be lower under a coalition government.

"The context in 2004 was who was better to deliver lower interest rates in a booming economy," Mr Howard told the Australia-Israel Chamber of Commerce on Tuesday.

Then the Reserve Bank of Australia's cash rate was 5.25 per cent compared with 2.50 per cent now.

Mr Howard said rates were lower now because the economy was slowing.

"For anybody to run around between now and election day and say that a cut in interest rates means that the government has got the economy well in hand, they're deluding themselves," Mr Howard said.

"Look at some of the nations of Europe. They have got virtually zero interest rates and their economies are not moving."

Link -
http://www.dailytelegraph.com.au/news/breaking-news/low-rates-due-to-slowing-eco...
==============================
Well, the RBA has lowered the cash rate to a record OZ low, so everyone should now feel good & ready to go, RIGHT?

Wrong!

As John Howard points out, the rates in Europe are already effectively at ZERO and their economies are not moving & nor are Japan & the USA, who are in the same boat!

In fact, the reality of interest rates is that Governments & Central Banks use them to "influence" the Economy, by raising rates to slow Demand & lowering them to increase Demand.

However, there are situations where Governments & CB's are in CONTROL, where they are in relative control & some where they have
no control
over events at all.

The current event is the latter of the above situations & that will not alter, whether Labor or Liberal win the upcoming election!

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Dnarever

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Re: Low interest rates
Reply #18 - Aug 6^th, 2013 at 9:25pm

perceptions_now wrote on Aug 6^th, 2013 at 8:43pm:

Low rates due to slowing economy: Howard

THE Labor government is deluding itself if it believes lower interest rates are a sign they have the economy well in hand, former Liberal leader John Howard says.

In 2004 when Mr Howard was contesting an election as prime minister, he said interest rates would always be lower under a coalition government.

"The context in 2004 was who was better to deliver lower interest rates in a booming economy," Mr Howard told the Australia-Israel Chamber of Commerce on Tuesday.

Then the Reserve Bank of Australia's cash rate was 5.25 per cent compared with 2.50 per cent now.

Mr Howard said rates were lower now because the economy was slowing.

"For anybody to run around between now and election day and say that a cut in interest rates means that the government has got the economy well in hand, they're deluding themselves," Mr Howard said.

"Look at some of the nations of Europe. They have got virtually zero interest rates and their economies are not moving."

Link -
http://www.dailytelegraph.com.au/news/breaking-news/low-rates-due-to-slowing-eco...
==============================
Well, the RBA has lowered the cash rate to a record OZ low, so everyone should now feel good & ready to go, RIGHT?

Wrong!

As John Howard points out, the rates in Europe are already effectively at ZERO and their economies are not moving & nor are Japan & the USA, who are in the same boat!

In fact, the reality of interest rates is that Governments & Central Banks use them to "influence" the Economy, by raising rates to slow Demand & lowering them to increase Demand.

However, there are situations where Governments & CB's are in CONTROL, where they are in relative control & some where they have
no control
over events at all.

The current event is the latter of the above situations & that will not alter, whether Labor or Liberal win the upcoming election!

"The context in 2004 was who was better to deliver lower interest rates in a booming economy," Mr Howard

The conservatives are never wrong as long as they have somewhere to move the goal posts when the facts do not align with their opinions.

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