IT’S time for the Reserve Bank to stump up on Tuesday with an interest rate cut to kick-start the nation.
The Australian economy has been a one trick pony for much of the past decade, but our prized runner - the mining industry - just turned lame. It is time for the Reserve Bank to give the other parts of the economy retail, manufacturing, services and construction a giddy up this Tuesday.
It’s a close call - given the Reserve Bank has already cut interest rates 1.5 percentage points over the past year - but another rate cut at 2.30pm looks like the favourite.
Latest 2 of 59 commentsView all comments
The Gillard government’s much-touted Australia in the Asian Century report is packed full of eye-popping statistics about the rise of Asia. Did you know, for example, that 80 million people played football in Asia in 2006 and that by 2020, this is expected to reach 380 million?
China is already the world’s biggest buyer of Rolls Royce cars. In the first decade of the 21st century, the number of cars per 100 urban households in China jumped from less than one to more than 18. There are now 80 computers per 100 households in China, up from eight. There are 60 microwave ovens, up from 16. And a whopping 200 mobiles, up from 16.
Are you excited about the Asian Century yet? Wait, there’s more.
Latest 2 of 146 commentsView all comments
It is immodest to say I told you so. So let’s move on…
The board of the Reserve Bank has sent a clear message with yesterday’s cut to the official cash rate: it’s time to start preparing for the end of the mining investment boom, which, crucially, is going to arrive sooner than expected.
Yesterday’s board meeting was a closely watched and hotly contested affair among economists and mortgage holders alike. Three members of News Ltd’s “Shadow RBA” had tipped a rate cut, while five of the remaining six were tipping a Melbourne Cup day move.
Latest 2 of 168 commentsView all comments
In June 33 years ago Gina Rinehart launched her Wake Up Australia campaign and had to charter a Boeing 747 to reach the people she wanted to hear her demands for all power to the miners. No need for a jumbo jet these days when a no-frills video and the internet can bounce her words around Australia, and the world.
The medium has changed, but the message hasn’t.
“The minerals are in the ground. All we have to do is give free rein to individuals and companies with the incentive and ability and courage to dig them out and sell them,” Ms Rinehart said in 1979.
In her video released today she says: “And with state and federal debts, we must get realistic not just promote class warfare. Indeed, if we competed at the Olympic Games as sluggishly as we compete economically there would be an outcry.”
Latest 2 of 172 commentsView all comments
All those rocks and vapors we have been selling to overseas customers by the boatload have protected Australia from the economic frailty of other countries and made it a freak of the industrialised world. So any suggestions revenue from those gasses and gravel is likely to fall steeply is a matter of huge concern.
Particularly at a time when the Government is facing higher and additional bills while scrambling to present a minimalist Budget surplus.
Thus the trepidation is understandable when giant miner BHP Billiton defers a $30 billion Olympic Dam expansion in South Australia because of, in part, “subdued commodity prices”. Is this the the first sign of the minerals bubble deflating?
Latest 2 of 101 commentsView all comments
There’s only one circumstance in which a corporate profit of over $15 billion looks disappointing. That’s when you made $23 billion last year.
The multinational mining giant formerly known as the Big Australian announced a massive US $15.4 billion net profit yesterday afternoon (simultaneously on stock exchanges around the world, reflecting the global behemoth it has become).
It was reported in some places as ‘BHP profit down 35 per cent’. That’s true. But then last year’s $23 billion mega profit was up 80 per cent on the previous year, knocking all previous corporate profit records out of the park.
Latest 2 of 167 commentsView all comments
A peculiar diplomatic exodus is taking place away from Australia’s economic heartland.
Over the past year more than half-a-dozen Consulates based in Perth have either completely shut-shop or withdrawn key representative postings.
What is Western Australian doing wrong? Foreign governments should be scrambling to court the state that is essentially driving the nation’s economic development.
Latest 2 of 14 commentsView all comments
Gosh it’s hard to keep up. Kevin Rudd is responsible for us surviving the worst of the Global Financial Crisis, but not responsible for the massive government debt we’ve racked up in the battle.
The Rudd government is close enough to China to get the $50 billion Gorgon Gas deal through, but not close enough to get Stern Hu an appointment with a lawyer.
What’s next - John Howard was responsible for interest rates going up, but Kevin Rudd was only responsible for interest rates coming down? What about when they go back up again?
(The Punch team will be discussing this and other issues with Federal Minister Anthony Albanese on Punch TV at 12.30pm today on Sky News).
Latest 2 of 31 commentsView all comments
Read all about it
Up to the minute Twitter chatter
The latest and greatest
Good morning Punchers. After four years of excellent fun and great conversation, this is the final post…
I have had some close calls, one that involved what looked to me like an AK47 pointed my way, followed…
In a world in which there are still people who subscribe to the vile notion that certain victims of sexual…