John Key's delusion over economy should worry us all
So the Dow drops another 259 points today, turns out the debt caused by deregulation low tax Milton Friedman free market dogma that allowed venal corporate greed to crash the global economy in 2008 wasn't sustainable.
Who woulda thunk it.
It all makes the Governments bizarre optimism last week over the economy seem utterly delusional. Last Tuesday Key was bragging in Parliament how great he was and how great the economy is, by Friday the country had its credit rating downgraded. Over the weekend the Government claimed the downgrade wouldn't impact on interest rates, today Bill English is admitting it will.
I've pointed out many times that our multi-millioanire Money Trader lives in an optimistic bubble world removed for the realities of poverty, and his bizarre optimism last week brought that vacant aspiration to the forefront, especially in light of the Reserve Banks warnings yesterday...
Reserve Bank warns of global financial risks
The Reserve Bank is warning of a "slow grind ahead" with surprises and disappointments that can't always be predicted. There is a "real risk that global economic activity could slow sharply," Bank governor Alan Bollard says.
...and the slow down in Australia, our largest trading partner is being described as a 'super slump'...
Next recession a super-slump: forecaster
The next global recession will make the GFC look like a picnic, with property prices to fall by almost half across Australia. That's the view of American economic forecaster Harry Dent, who says Australia could be dragged into a massive global economic slowdown, brought on by Europe's sovereign debt crisis.
...John Key must thank his lucky stars that the sleepy hobbits are too transfixed on Dan Carters groin to notice the global economy is in meltdown and that all he has done to prepare us for the tsunami coming our way is to provide an umbrella on the beach.