Jobs fantasy: Another set of figures damns the RBA's judgement.

The article by Michael Pascoe in this week's "West Report" titled as above, is of course prescient.

It confirms an opinion I expressed in a blog I published on the 27th. Feb. titled "At this Rate".

Far be it from me, that I should dare to align my thesis ,with an article written by Mr. Pascoe but I hope he would not be to annoyed with my presumption.

In my blog, I expressed an opinion that Governor Michele Bullock's predecessor, had contributed to the problem of grossly inflated property values, after he dropped the bank rate progressively to 0.1% for an extended period. This lead to rampant property investment, fueled by the artificially low interest rates that applied. A problem that is becoming an issue once again. For about 35-40 years from the late 60's, Aussie battlers like me, had to put up with consistent rates between 7 to 7.5% and somehow we survived. Of course, the other factor that continues to drive property values is negative gearing. Another tax lurk, that benefits only high- income earners such as our overpaid parliamentarians, which is why they prefer to ignore it. Getting back to my hobbyhorse. We are badly governed by the "Two- party "system in particular, but would do better, if we converted to a parliament of independent members, answerable only to their individual electorates.

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