FED: Wind back stimulus or face higher rates, gov't told
Wed Aug 19 17:41:17 EST 2009
Subject: [Fwd: FED: Wind back stimulus or face higher rates, gov't told] name="FED: Wind back stimulus or face higher rates, gov't told.eml" filename*0="FED: Wind back stimulus or face higher rates, gov't told.eml" Subject: FED: Wind back stimulus or face higher rates, gov't told FED: Wind back stimulus or face higher rates, gov't told
CANBERRA, Aug 19 AAP - The Rudd government will provoke higher interest rates if stimulus measures aren't immediately wound back, Liberal frontbencher Joe Hockey says.
He's urged the government to re-think its economic approach following an apparent shift in thinking from economists, who believe the downturn has not been as bad as the 1990 recession.
It was time for the government to take a calmer approach, Mr Hockey said.
"The economy is going to be hampered by this continuing, massive spending," he told reporters on Wednesday.
"The government committed over $100 billion of new spending since 2008 - that new spending goes over a number of years - (and) more than $40 billion is to be spent from July.
"It's too much money, it's too much debt and higher interest rates."
Australians can expect higher interest rates and increased taxes under Labor if the government continues its billion dollar cash splash, Mr Hockey said.
AAP cj/sb/maur=0A
FED: Wind back stimulus or face higher rates, gov't told