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If a poll was taken today as to whom was the most influential person in Oz economics then Mr Ian MacFarlane of the Reserve Bank should easily take the cake. The question is whether he deserves this distinction for the right reasons?

Are we fully informed as to why the country had to endure a 0.50% rise in interest rates?

It is quite obvious that the major focus of growth is in two cities. This growth may have a fair bit to do with the the olympics and in increasing the rates he has ignored all of the economic forecasts as to what is happening in the rest of Australia. Well thankyou Sydney and Melbourne! Thank you Mr Ian MacFarlane for taking the plight of two cities and increasing rates across the board which will be a severe blow for the rest of the States & Territories.

The truth be known Australia has slipped in the ranking of the best country to invest ones money. We are now 10th, behind Brazil and Argentina. Why? - our rate of return was not all that great (mind you for a politically stable economy I would steer clear of the 5 of the 10 on the list).

With the increase in rates in the US by 0.25% MacFarlane and the Reserve Bank Board could not afford to see fresh capital withdrawn from Oz. They had to entice the global money managers to stay in Oz and invest more money - the principal reason that Howard dropped the CGT by 50%. It seems they are courting international money placers - investment houses to invest in Oz for 'the benefit of the country'. Yet these pollies have just increased their own salaries and benefits by 10% and are fighting the employees requests for increased wages. All of this in a low inflation environment when everything was chugging along nicely.

The major financial economists are predicting a downturn in the Oz economy in the latter half of this year. That is right - a downturn! After the Olympics things are to go down hill as the momentum will be taken out of the need to undertake such massive projects and unemployment will rise. As regards the housing - well the government introduced the GST and those savvy enuff know that they can save 10% if they build before June 30. So what are they coming at with the 0.5% rise in interest rates - well it isnt to stop inflation as inflation is not evident in their own figures! Mr MacFarlane should also be voted the biggest hypocrite of all time!

Second would be Costello with his off the cuff remarks that the increase in the interest rates are set off against his parties reductions in rates since coming to power"... Whilst the average loan has dropped $400 since coming to power they have only increased $50" [or words to that affect]. What a smug indifferent comment from the Treasurer! Where did he take his lessons in double speak? Paul Keatings rocket school of economics?

Then again we have little Johnny Howard (who once I had respected) going crook at the 'greedy banks' for making profits and predicting rates to rise 0.5%. Who is the real greedy one at the end of the day? Whose pockets can we aline first before we give the country the bad news.

As to Mr and Mrs Average with that average home loan on the average block in that average suburb... bad luck ... pull your belts tighter and buy more mince and vegetables... do without and shut-up! It is not time to vote yet........... plus it is far more favourable if you buy after June 30 - the coffers increase alarmingly after that date from the GST!!!!!!

Cyncical am I not!

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