The Queensland Budget And Its Implications
It is hardly likely that any state will be putting up a rosy budget for the next year or two. Like Queensland all states and territories have suffered with the financial crisis.
With the new budget now announced in Queensland, do you feel as if it relates to your own personal budget?
To me what the budget highlighted was the fact there is going to be no quick fix to the financial crisis and not only that, we are all going to be paying for it for many years to come.
If States and the Government are going to be able to meet the interest payments on borrowings that they are making it seems quite clear that there are going to be significant hikes in rates or taxes in one form or another over the next 5 – 10 years.
It seems to equate to a credit card, doesn’t. Keep on borrowing against it and before you know it you are only paying off the interest and only a little of the loan.
Certainly what seemed to be a lot of financial scrambling going on in the first six months of the year appears to have stopped, or at least slowed down, but are we over the worst of it?
Those experienced in technical share trading will realise that we are at the cross-roads. Is the share market going to bounce back up as it has been doing in the past 3 months, or is it going to turn back down from its present position? There has been a significant technical trading pattern with the Dow (a head and shoulders) and there will be many waiting to see if the pattern is going to retract from this point or go upwards, indicating a strengthening of the economy.
Time will tell. The share market is a good indicator of whether the financial status is improving or going to get worse. There are those backing both sides of the coin at the moment.
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