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Cost of Living meets The Twilight Zone and IT.

02/06/2011

You WERE travelling in a world of illusion; an illusion of sights and sounds  on a journey. A journey where you are told things that supposed to be facts, but turn out to be lies.

Suddenly there is a door!

You open the door and enter a world where the media actually report news and do so without bias. Lies eat themselves out of existence, and illusions fade.

You have entered…. the non bull shit zone.

And boy has there not been some bull shit thrown around recently. The most glaring piece of who flung dung of late is something called the ‘Cost of Living’.

If you believe Tony Abbott, you and I are skint. We barely live from week to week. We live off credit and the good will of the salvos. Oddly, a lot of people nodded and agreed. Not that they agree that they themselves are barely making it, but surely there was someone that was. I mean look at the price of bananas!

But facts tell a different story about the cost of living.

AUSTRALIA has been transformed from a nation of spenders to savers, with the average household putting 11.5 per cent of their income away every month.

Until five years ago, households were saving nothing and indeed, during the most profligate period in late 2003, were spending 2.4 per cent more than they earned.

Let me go through this. Under the Howard government, in 2003, people lived on credit. Under the Howard government only 5 years ago, households were indeed living barely on what they made. And now, in this terrible age of cost of living pressure, if you believe Tony Abbott that is, households are saving 11.5% of the income.

That is under the Rudd government and continuing with the Gillard government, the average household has had extra money at their disposal which, after they pay all these ‘cost of living’ stuff, STILL have enough to save. And that means if you earn 150K a year, you save on average, over $15,000 annually.

Yet Tony Abbott has somehow being telling the Australian people that this is not the case. But as I said yesterday, he can only do that in the absence of facts. And the facts say otherwise.

You would think someone somewhere would point out the flaw in Abbott’s logic. You would think someone would say, what a minute, I’m doing much better now then under Howard during the height of mining boom 1, thank you very much. But no. They wont.

And Abbott will get away with spreading his message of gloom and doom, despite the fact that everyone now knows that everyone else is bull shitting about the cost of living.

Worse, if no one does stand up and say that Abbott is the emperor with no clothes on this issue, they will be silent as prices rise around them as this will somehow confirm to them that the cost of living really is going up.

Sorry, but I just don’t under stand how an economist of any note can say the phrase ‘cost of living increases’ with a straight face.

It seems that we don’t have just a side show, but a full blown circus, with the media providing the elephants and the economists providing the clowns.

Nothing to see here. There is no good financial news here. Not for you anyway! Here. Have a balloon….

A. Ghebranious   2011   (All Rights Reserved)

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One Comment
  1. Jennifer Baratta permalink

    Wow! Bet abbot fell for the american dead rapper living near you too. Hey Tony Abbot read before you speak.

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