1
00:00:00,160 --> 00:00:02,719
Speaker 1: Let that Ossie economy be a bit of a warning

2
00:00:02,800 --> 00:00:05,920
Speaker 1: to us. The inflation thief might be gone, but it

3
00:00:05,960 --> 00:00:08,280
Speaker 1: still lurks in the corner, and if you're not careful,

4
00:00:08,320 --> 00:00:11,240
Speaker 1: it happily leaps out and steals your wages. Last week

5
00:00:11,280 --> 00:00:13,520
Speaker 1: we spoke about the fact their inflation is running hot,

6
00:00:13,560 --> 00:00:17,639
Speaker 1: almost four percent across the Tasman They're now world leaders'

7
00:00:17,960 --> 00:00:20,919
Speaker 1: highest rate in the developed world, more than the UK,

8
00:00:21,079 --> 00:00:24,680
Speaker 1: the US, Germany, Japan, Canada, Spain and France. Not something

9
00:00:24,680 --> 00:00:27,080
Speaker 1: that Elbow or anyone in Camberralli should be proud of.

10
00:00:27,120 --> 00:00:30,520
Speaker 1: So yesterday the RBA did what central banks do. Things

11
00:00:30,600 --> 00:00:33,080
Speaker 1: get a little too spicy, They hike the rates. They've

12
00:00:33,120 --> 00:00:35,040
Speaker 1: just done a quarter of a percent. They're likely to

13
00:00:35,080 --> 00:00:39,559
Speaker 1: do another one next month. Labour has a very generous system.

14
00:00:39,760 --> 00:00:41,919
Speaker 1: You might have heard friends who've moved over there talk

15
00:00:41,920 --> 00:00:44,480
Speaker 1: about it. That gets Ossis into house. Its first home

16
00:00:44,520 --> 00:00:47,120
Speaker 1: buyers can get in with the ten percent this cash

17
00:00:47,120 --> 00:00:51,159
Speaker 1: at the ready housing costs are partly driving this inflation.

18
00:00:51,760 --> 00:00:54,520
Speaker 1: No such thing as a free lunch. The subsidies are

19
00:00:54,560 --> 00:00:57,920
Speaker 1: also helping to drive house prices up, which in places

20
00:00:57,960 --> 00:01:00,959
Speaker 1: like Sydney go and have a look and even now

21
00:01:01,080 --> 00:01:05,039
Speaker 1: Brisbane completely out of reach, not even comparable to our

22
00:01:05,040 --> 00:01:08,119
Speaker 1: big cities, especially now that ours have come down a bit. Now,

23
00:01:08,160 --> 00:01:11,280
Speaker 1: the interest rate hikes that these young new buyers are

24
00:01:11,319 --> 00:01:13,440
Speaker 1: going to have to swallow as the rates go up

25
00:01:13,480 --> 00:01:17,280
Speaker 1: will leave an estimated one point three million mortgage holders

26
00:01:17,360 --> 00:01:21,560
Speaker 1: under stress. Roy Morgan says that's thirty percent of mortgage

27
00:01:21,600 --> 00:01:25,400
Speaker 1: holders in Australia now. Alba and Labor are overseeing near

28
00:01:25,520 --> 00:01:28,680
Speaker 1: record highs of government spending at the same time almost

29
00:01:28,720 --> 00:01:32,000
Speaker 1: thirty percent of GDP Now. The problem is when the

30
00:01:32,040 --> 00:01:36,200
Speaker 1: private sector runs up against competition from the public sector,

31
00:01:36,319 --> 00:01:38,440
Speaker 1: it can cause the whole thing to fizz and bubble

32
00:01:38,520 --> 00:01:41,039
Speaker 1: up to the point of overheating. And overheating needs calling

33
00:01:41,080 --> 00:01:44,760
Speaker 1: and calling causes pain. So the next time that politicians

34
00:01:44,800 --> 00:01:46,720
Speaker 1: on this side of the Tasman telling you that more

35
00:01:46,800 --> 00:01:50,480
Speaker 1: borrowing and spending will solve our problems, ask them how much,

36
00:01:51,000 --> 00:01:55,040
Speaker 1: from where, for what exactly, and whether the spend carries

37
00:01:55,080 --> 00:01:59,720
Speaker 1: an inflation risk or not. For more Family edition with

38
00:02:00,000 --> 00:02:02,880
Speaker 1: Ian Bridge, listen live to news Talks. It'd be from

39
00:02:03,000 --> 00:02:06,520
Speaker 1: five am weekdays, or follow the podcast on iHeartRadio.