Sunday, October 12, 2008

Labour dithers while economy is in danger of collapse

The world, and that includes little ole New Zealand is running close to the brink of financial collapse.

The credit crunch, a fallout from the sub prime meltdown has seriously affected global stockmarkets and it is only a matter of time before that seriously impacts our real economy.

Currently The Labour Government, through the lame-arsed mis-management of the economy by Michael Cullen, has us limping through a recession, but it could get worse if action isn't taken, and soon.

The rest of the globe is acting to intervene in this financial crises and over this weekend finance ministers from around the globe have convened in Washington to brainstorm solutions to the problem.

Cullen meanwhile is silent. He seems relaxed in the face of possible economic doom.

For a Government who has been hands on with intervention in the economy for nine years it seems bizarre that they are now hamstrung in the face of possible re-election or indeed just don't care about the serious position the world and New Zealand finds itself in, economically speaking.

For his part Cullen has been all over the place with the state of what has been happening in the United States and has been changing his opinion from day to day as to the seriousness of the situation.

Labour simply need to cut back expenditure on wasteful spending, cut taxes and use whatever spare cash there is to build infrastructure-it would be perfect timing for a new Auckland Habour crossing construction announcement, amongst other stuff.

Instead we get nothing from Labour, zip, zero, zilch, nada, sweet FA.

His only answer so far has been to pass more new taxes and restrict more personal freedoms.

Make no mistake, how this economic crises is attacked by Labour in the next week or so will mean the difference between a reasonably shallow recession for a medium term to a deep recession for a number of years.

Nationals response has been weak as well, but hey they are not on the treasury benches, Mikey boy is and so far he has failed.

Big time.

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c Political Animal 2008

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