Up, up and away.......!!

[WinstonWolfe]

THinking about how the govt is going to pay down public debt, their choices are :

- reduce public spending (sack public servants and reduce services)
- raise taxes
- target a higher inflation rate to erode the debt.

the last will be interesting. I look forward to seeing what excuses the RBA comes out with to relax its upper cpi target band, so as not to push rates so high they slow the economy and reduce tax revenue and inflation.

 

[Ausprop]

or wait till some of these bigger resource projects are signed off and reduce thru royalties

 

[Aaron Sice]

Why should they rise?
Our economy is not looking good and even if it did
it's not like we are a 3rd world country to justify high interest rates.
Why should we have the highest interest rates in the western world?
Our $ is now going up, I think it's time for the RBA to lower our cash rate.

i never said they had to IMMEDIATELY - just eventually they will have to move up.

 

[Aaron Sice]

Except buy bank shares!

I have no idea what is going on with IRs and global recovery. Mr Market seems to think it is all hunky dory right now anyway! But we know he has been wrong before...

except most people have to borrow money from *where?* to buy bank shares...