Latest / Early Edition with Ryan Bridge / Ryan Bridge: Governments should control spending and stability

Transcript

Ryan Bridge: Governments should control spending and stability · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: There are basically two big things that governments. The state controls.
• 0:03
  Speaker 1: That affects the economy, therefore affects us. All the politicians
• 0:07
  Speaker 1: make big, grandiose statements, they promise to change the world,
• 0:10
  Speaker 1: but the reality is a lot simpler and more basic
• 0:15
  Speaker 1: than that. Spending and stability. Romanians are going to bed
• 0:19
  Speaker 1: right now unsure of who is going to run their country.
• 0:22
  Speaker 1: The government's just lost a confidence vote there the Socialists
• 0:25
  Speaker 1: have cided bizarrely with the far right of all groups
• 0:28
  Speaker 1: to collapse the coalition. This is bad for their economy
• 0:31
  Speaker 1: because business relies on stability and predictability. Their absence kneecaps
• 0:36
  Speaker 1: investment decisions, therefore growth, and it's a problem. Same reason
• 0:41
  Speaker 1: investors right now jittery. In the UK, the long term
• 0:43
  Speaker 1: bond yields are the highest they have been since nineteen
• 0:46
  Speaker 1: ninety eight. Why because Starma is going to get a
• 0:50
  Speaker 1: hiding in local elections in the coming days and his replacement,
• 0:53
  Speaker 1: either Angela Rayner or even in the outside of Andy Burnham,
• 0:56
  Speaker 1: the King of the North, we've talked about him before,
• 0:59
  Speaker 1: are left of him. They are further left of Starmer
• 1:03
  Speaker 1: and that could mean more spending and borrowing something markets
• 1:07
  Speaker 1: unsurprisingly think the Motherland can ill afford at present, which
• 1:10
  Speaker 1: brings us neatly to spending. Look no further than across
• 1:14
  Speaker 1: the TASM. The RBA yesterday hiked the cash rate, putting
• 1:17
  Speaker 1: mortgage coss up for the third time this year, and
• 1:20
  Speaker 1: it comes with a warning to Jim Chalmers there Nicola
• 1:23
  Speaker 1: willis equivalent her jogging buddy in DC. Watch your spending, Cobber,
• 1:27
  Speaker 1: or you'll make this worse. Too much spending is fuel
• 1:30
  Speaker 1: on the fire, and the fire is burning, heading to
• 1:32
  Speaker 1: five percent inflation there, Thank you very much. Pretty much
• 1:35
  Speaker 1: every economist there, including Paul Bloxham, our rock star Economists,
• 1:39
  Speaker 1: says the key risk to Ozzie's right now is the
• 1:41
  Speaker 1: threat of an Australian budget due Tuesday with bazookers that
• 1:45
  Speaker 1: more with more cash than can be expected and afforded,
• 1:48
  Speaker 1: that could false rates higher. Of course, all of this
• 1:51
  Speaker 1: is to say there are plenty of lessons around the
• 1:53
  Speaker 1: world just in the last twelve hours, let alone modern history.
• 1:56
  Speaker 1: That politician's main job is basically to be responsible, get
• 2:01
  Speaker 1: along with one another, and don't be tempted to buy
• 2:04
  Speaker 1: votes with cash you can't afford in the short term,
• 2:07
  Speaker 1: and that we will pay for in the long term.
• 2:11
  Speaker 1: For more from Early Edition with Ryan Bridge, listen live
• 2:14
  Speaker 1: to News Talk Set B from five am weekdays, or
• 2:17
  Speaker 1: follow the podcast on iHeartRadio.