Interest rates

I spoke this morning about the interest rates.

How the ARB (The Reserve Bank) has to keep its’ eye on the economy
The treasurer sets what he things the inflation rate should be the ABR has the job of trying to keep inflation under that figure.

Now we have a sector of our economy that is running away which is the resources or mining. That boom has things going gang busters in W.A.
So how does that effect the rest of us well they think but slowing down the rest of things it takes the pressure off.

Well it wont here in NSW for instance our building industry is stagnant it actually needs stimulation we have a couple of artificial things holding it back one is the release of land. So land gets more expensive and all that goes with that.
The other is the infrastructure charge on anything that is built
These do not help but only hinder

Right now when we have the worst drought on record which creates demand with little or no supply; along with high fuel prices not helping

Living in a place like ours where everything has to travel and sometimes vast distances that also puts upward pressure on prices

What is really needed is for there to be a strategy meeting between all the parties The Federal Government ARB and possibly the states so we can work a way forward which is equitable for all of us.

That is the reason that we are paying more for our money in a nutshell