Wednesday, September 19, 2007

Humbled on Wild prediction

Okay it was and the team of Prime Minister in extremis and Subprime Minister Peter Costello have survived the day intact. I owe froggy a beer. But hey! Maybe I can equalise on the election outcome.

Coalition members might be encouraged by the latest polling, but they are also aware of the rapidly worsening economic situation.

Despite attempts to cool the economy with a rate hike recently there are clear signs that creeping inflation is well underway.

Just lately I’ve been asked to be advocate in an increasing number of services debt issues. Invariably the contested bills are correct, except that the normal amounts are increasing by up to 40%.

The fact is that price rises are not being announced, but rather introduced by way of billing changes, designed I expect to hide the hard truth. Sounds like more than creeping inflation at that rate, but still signals that it is here.

A new report suggests that reliance on credit cards was masking the true level of household economic stress. It predicted that at least 600,000 households could be under mortgage stress by the end of the year. That is a significant number in a population of 21 million.

It also ignores the number of renters in stress. I’m hoping my new project will give some access to figures which I haven’t been able to see up to now. You can’t see me drooling at the prospect of hard data, but I am.

I can’t see Howard’s government being surviving, always given he actually calls an election. We all live with that fear now as governments become entrenched in more than simply running the country.

There are so many issues stinging voters in this ‘booming’ economy I simply can’t see this government surviving. I’m not convinced the alternative is any more desirable.

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