The Greek crisis and the world crisis to come
When I have a moment I will do an update on this subject. Greece has learned nothing and the saga continues. Now there is a report that says Japan will join in the bail out efforts. This sounds rather weird to me considering that Japan has its own financial woes. A quick check of the news report indicates that the Nikkei index seems to be in a bit of a free fall.
The Australian Prime Minister, who is an economic illiterate, seems to think that Australia will be shielded from any new global crisis. The problem is that the woman, being an economic illiterate is dreaming. In 2008 when the last crisis took place, Australia was well placed because of the work done by the former Australian Treasurer Peter Costello. The Coalition left the budget in surplus. It look Wayne the goose, Swan 12 months to fritter away that large surplus which did nothing to stimulate the economy.
Australia is starting to go through the death throes of an economy in trouble from the stagflation that is on the way. The comparison to the 1970s when Gough Whitlam was in charge is at this stage even more obvious than what it was 12 months ago. The government spending has been accelerating at a very fast pace. There has been an increase in demands for higher wages. On top of this we find that the rise in the cost of groceries over the past 10 years has been phenomenal (I suspect that the increase has been more phenomenal over the past 2-3 years than the previous 7 years). Utility costs such as water, gas and electricity have sky-rocketed thanks to the dumb climate policies that have been adopted because of watermelon stupidity. These are indicators that do not suggest good fundamentals as claimed by the economic illiterate Juliar Dullard.