Yep, that's the word from the boffins. Or maybe it is the worst drought in a hundred years.
Anyways, the finger pointing and blame game between the politicians is as hot as ever, with the Feds saying the state governments haven't managed their resources correctly, the state governments retorting that the Feds haven't given the money for national infrastructure type projects that they should have.
The Treasurer was saying that the drought may cause a recession in the bush, which may very well then cause higher inflation for the rest of us because groceries could be more expensive. This also after the low unemployment rate, lowest in thirty years apparently, is partly due to a skills shortage and apparently low unemployment overheats the economy, so that's another mark to raising rates again.
On the other hand, Mark Vaile, the leader of the Nats in Canberra - aka Mr Know Nothing at the wheat for bribes inquiry - has asked the Reserve Bank not to raise rates, to take a sympathetic view of farmers going to the wall if rates are raised. Yes, because sympathy is such a large part of economic thinking. And surprise surprise, the politicians are already thinking of rescue packages for farmers.
Sorry to play devil's advocate, but how many people do live out in the bush anyways?
And it is an El Nino year, so it is due to be hotter over summer anyway - the southern states are having some of their hottest October days ever (Sydney was due to get to 37 today), level four water restrictions are to take effect in Brisbane and the South East on November 1 - lucky they got that pesky election out of the way before things got worse, eh - and Tasmania and I think Victoria had their earliest total fire ban days ever earlier in the week.
It's going to be a horrid summer, I can feel it.
Paul
PS - Buffalo, in New York state, just got its heaviest October snowfall in one day ever. Think it is linked with us having a worse summer - ya think?
Anyways, the finger pointing and blame game between the politicians is as hot as ever, with the Feds saying the state governments haven't managed their resources correctly, the state governments retorting that the Feds haven't given the money for national infrastructure type projects that they should have.
The Treasurer was saying that the drought may cause a recession in the bush, which may very well then cause higher inflation for the rest of us because groceries could be more expensive. This also after the low unemployment rate, lowest in thirty years apparently, is partly due to a skills shortage and apparently low unemployment overheats the economy, so that's another mark to raising rates again.
On the other hand, Mark Vaile, the leader of the Nats in Canberra - aka Mr Know Nothing at the wheat for bribes inquiry - has asked the Reserve Bank not to raise rates, to take a sympathetic view of farmers going to the wall if rates are raised. Yes, because sympathy is such a large part of economic thinking. And surprise surprise, the politicians are already thinking of rescue packages for farmers.
Sorry to play devil's advocate, but how many people do live out in the bush anyways?
And it is an El Nino year, so it is due to be hotter over summer anyway - the southern states are having some of their hottest October days ever (Sydney was due to get to 37 today), level four water restrictions are to take effect in Brisbane and the South East on November 1 - lucky they got that pesky election out of the way before things got worse, eh - and Tasmania and I think Victoria had their earliest total fire ban days ever earlier in the week.
It's going to be a horrid summer, I can feel it.
Paul
PS - Buffalo, in New York state, just got its heaviest October snowfall in one day ever. Think it is linked with us having a worse summer - ya think?
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