More Money
Interest rates are up again, and everybody’s got something to say about it. Opposition leader, Kevin Rudd, Prime Ministerial hopeful, says PM Howard’s bluster over past high interest under Labor show’s he’s out of touch, unconcerned with the reality of the effects. But the PM, recently shown poll results characterizing him as dishonest and arrogant, rejects such criticism, as he does any criticism, for that matter. (Arrogant, moi? I reject that.)

Mortgages will be well up over 8% now, and likely to rise further still, perhaps even before the next election. Keep in mind, only the PM knows when that will be, but most people are tipping November. That’s about when the rates would be likely to rise, too, just in time for Labor to take over the government. If we’re headed for an economic downturn of any duration, let alone – and God forbid – a recession, the rates will go up even more under the next government, regardless of who’s in the Lodge.

If it’s Labor, it will cement their reputation for economic mismanagement and we can look forward to a swift return of the Liberals, and by that time, much of the present crop will have retired or at least been relegated to the back bench. While that itself might seem a good result, keep in mind that Mr. Howard has empowered the far right wing of his party, much as Reagan did in the States, so we’d be looking at a George W-style leadership coming to power.

Labor’s best hope to manage the economy is to act in consultation with the civil service, a practice Howard decided to abandon, in favor of his own brilliance. That’s why I feel a little leery over this latest 2.0 promotional effort from Rudd: Kevin 07. It’s a little “presidential,” don’t you think?