Right Pulse

Well we all know why Rudd embarked on his cash-a-thon spending spree. It had less to do with protecting the economy and more to do with forming welfare recipient addiction to Rudd’s handouts. So is it any wonder that Rudd is continuing to put the budget into deficit while the RBA raises interest rates:

Reserve’s view that the worst for the economy was over and that “a new stage of expansion”

…Mr Rudd appeared to contradict Mr Stevens, saying that the recovery in the global economy was ”far from certain” and ”that is why calls to end the stimulus are so irresponsible”.

”Economists still point to the possibility of a double-dip recession,” he said.

So in other words the RBA is wrong. If John Howard has said something similar you can imagine the headlines it would make. Clearly the RBA hasn’t taken the right socialist pills. And which economists is Rudd talking about, maybe ones in the USA? This is Rudd once again confusing Australia with what is happening in the USA – subprime market meltdown, extreme capitalism, etc…none of which happened in Australia, but Rudd still attacks the domestic free market.

Even recently Rudd has been out and about spruiking his own brand of economics, still claiming that the financial downturn was the result of greed, without realising that it was a symptom not a cause:

…millions of people around the world have lost their jobs and suffered because of unrestrained and unregulated greed.

Ah no. The source of the downtun can be found in the US mortgage market, which is probably the most highly regulated mortgage market in the developed world. It was the constraining of free market forces and the moral hazard created by the government business enterprises of Mae and Mac that resulted in the meltdown, more than any private sector greed that resulted from the distorted market.