Money, money, money, must be funny in a federal election year

In the teeth of the Reserve Bank's warning yesterday that increased demand due to public sector spending was fuelling Australia's underlying inflation and Consumer Price Index which could both rise above 3% for the next two years on a year-ended basis; John Howard strode to the Liberal campaign launch lectern and promised to spend, spend, spend to the tune of $9.4 billion on top of his other recent pledges. 

 

The Prime Minister has lost any credibility as an economic conservative. He is playing with funny money promises. If re-elected he would have to recant on many of his money promises if inflationary pressures are to be kept in check.

 

But then, on the NSW North Coast we have said for years that John Howard takes the money from his right pocket, waves it at us, puts in it back into his left pocket, and the cash never sees daylight again.