Stevens: ‘Risk of Serious Contraction’ Passed

2 Mar

The man who did not see trouble all around in 2008, continually raising interest rates right into the teeth of the GFC, has raised rates again today:

RBA governor Glenn Stevens said the “risk of serious economic contraction” had passed, and an economy that was growing faster than expected would warrant higher interest rates for the rest of the year.

Stevens clearly believes that the Australian economy is magically immune from the sovereign debt crises in the Eurozone, UK, USA, and Japan, and the massive speculative real estate bubble in China.

However, the Rudd Labor government no longer has a $20+ Billion budget buffer inherited from the previous government. Instead, they have put Australia into unprecedented debt that we can never pay back.

Stevens, allegedly a devout Baptist, had best start praying fervently that all the ongoing financial crises in the rest of the world somehow resolve themselves.  Else he will again be shown as a fool… at a terrible price to the Australian public.

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