“Ad
hoc” tax cuts in the budget, more money for families, rising oil prices and a
tough call on interest rates. That is the economic landscape for this
Mayday.

The
Oz discusses the “conundrum” for the Reserve Bank on interest rates: “… any interest rate rise
now will swamp whatever spin the Treasurer tries to place on the budget tax cuts
he is expected to unveil next week. The irony is delicious. Perhaps the Reserve
Bank board might shame the Government into considering tax reform even at this
late stage, by announcing an increase in interest rates on Wednesday, only six
days before the May 9 budget.”

Henry presents his
advice for the board of the RBA here tomorrow. “Better late than never” is the
theme, although interest rates are far from the main game just
now.

“Solomons a
shambles” writes Craig
Skehan
for the
SMH. Sir Wellington
Boot provides an action plan for all the failing Pacific
states.

We report our
happiness that the two miners have been discovered alive; here’s hoping they are
rescued alive and well in short order.

Read more at
Henry Thornton.