This week we are again
experiencing great political excitement – IR reform, anti-terror legislation, and
who knows what else – while we relive events of 30 years
ago.

“Trust us,” says the Government, and
why not? Its members are good Aussie lads and lassies, with Labor, Barnaby and
the odd Green and other colourful fringe players to keep them honest.

… it cannot be denied that the
Howard Government has “form” – real wages have risen far more than they did
under the Hawke & Keating Governments. Why would this change? Why would
the Howard Government throw away the general prosperity that is a major reason
for getting it re-elected? I know I am just a card carrying economist but in my
business career I must say getting rid of real nutters has been one of my
greatest challenges and the soon to be replaced IR laws are biased for the
nutters.

As we have said, however, there is
some heavy economic weather coming. No lesser person than John “Aussie Home
Loans” Symond has warned that house prices have further to fall. Great for first
home buyers, not so good for those of us sitting on fantastic capital gains.

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prices also have to fall as global excess liquidity is reeled in by
Alan Greenspan and Ben Bernanke. Long-term prospects are great,
provided we can keep the economy bubbling along which requires
continual economic reform, and that we cope with the terror threat,
bird flu, global warming and other alarms and excursions.

Read the full article at Henry
Thornton.