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Ryan Bridge: Australia's economy is a warning of what's to come · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Let that Ossie economy be a bit of a warning
• 0:02
  Speaker 1: to us. The inflation thief might be gone, but it
• 0:05
  Speaker 1: still lurks in the corner, and if you're not careful,
• 0:08
  Speaker 1: it happily leaps out and steals your wages. Last week
• 0:11
  Speaker 1: we spoke about the fact their inflation is running hot,
• 0:13
  Speaker 1: almost four percent across the Tasman They're now world leaders'
• 0:17
  Speaker 1: highest rate in the developed world, more than the UK,
• 0:21
  Speaker 1: the US, Germany, Japan, Canada, Spain and France. Not something
• 0:24
  Speaker 1: that Elbow or anyone in Camberralli should be proud of.
• 0:27
  Speaker 1: So yesterday the RBA did what central banks do. Things
• 0:30
  Speaker 1: get a little too spicy, They hike the rates. They've
• 0:33
  Speaker 1: just done a quarter of a percent. They're likely to
• 0:35
  Speaker 1: do another one next month. Labour has a very generous system.
• 0:39
  Speaker 1: You might have heard friends who've moved over there talk
• 0:41
  Speaker 1: about it. That gets Ossis into house. Its first home
• 0:44
  Speaker 1: buyers can get in with the ten percent this cash
• 0:47
  Speaker 1: at the ready housing costs are partly driving this inflation.
• 0:51
  Speaker 1: No such thing as a free lunch. The subsidies are
• 0:54
  Speaker 1: also helping to drive house prices up, which in places
• 0:57
  Speaker 1: like Sydney go and have a look and even now
• 1:01
  Speaker 1: Brisbane completely out of reach, not even comparable to our
• 1:05
  Speaker 1: big cities, especially now that ours have come down a bit. Now,
• 1:08
  Speaker 1: the interest rate hikes that these young new buyers are
• 1:11
  Speaker 1: going to have to swallow as the rates go up
• 1:13
  Speaker 1: will leave an estimated one point three million mortgage holders
• 1:17
  Speaker 1: under stress. Roy Morgan says that's thirty percent of mortgage
• 1:21
  Speaker 1: holders in Australia now. Alba and Labor are overseeing near
• 1:25
  Speaker 1: record highs of government spending at the same time almost
• 1:28
  Speaker 1: thirty percent of GDP Now. The problem is when the
• 1:32
  Speaker 1: private sector runs up against competition from the public sector,
• 1:36
  Speaker 1: it can cause the whole thing to fizz and bubble
• 1:38
  Speaker 1: up to the point of overheating. And overheating needs calling
• 1:41
  Speaker 1: and calling causes pain. So the next time that politicians
• 1:44
  Speaker 1: on this side of the Tasman telling you that more
• 1:46
  Speaker 1: borrowing and spending will solve our problems, ask them how much,
• 1:51
  Speaker 1: from where, for what exactly, and whether the spend carries
• 1:55
  Speaker 1: an inflation risk or not. For more Family edition with
• 2:00
  Speaker 1: Ian Bridge, listen live to news Talks. It'd be from
• 2:03
  Speaker 1: five am weekdays, or follow the podcast on iHeartRadio.