Economic Insights by Clifford Bennett

Australia has a new Prime Minister

Property Club Property Market Insights

Having once briefly chatted to Tony Abbott, and knowing the man up close just a little, I have to say we lost a good PM this week. The positive though, is that despite undoubted treachery, the Liberals may actually deliver to our nation TWO good Prime Ministers.

So this could still be a move in the right direction. The Australian economy is undoubtedly challenged and softening as I have previously outlined. It was, however, at least beginning to move in the right ‘policy’ direction.


APRA and the RBA aside

The major obstacle to new policy initiatives, of course, is the tendency of some Senators to grand-stand and hold back policy or totally eliminate it – Instead of respecting the views of most voters. The removal of all senates would be a nice thing, but is unlikely anytime soon. Malcolm Turnbull will still face the reluctance of key Senate votes to endorse true reform.

Here is the essential angle on all of this. Malcolm, also an incredibly capable individual, has come to power promising faster and bolder economic reform?

So this is how he will be judged!

Perhaps then, there is a real prospect for the kind of honest reform we all so badly need. For Australians (just 23 million) to compete in Asia, we have to be the very best at what we do in every way. This includes politics.

In a general sense, an improving economy will of course be good for property prices, providing a higher ability to earn and invest. There is also the slightly outside chance that the idea of appointing the RBA Governor outside the bank (as I have often suggested) could be given a hearing. In addition, Malcolm is a very knowledgeable man in regard to banking, and hopefully he will be open to Kevin Young’s plea for something to be done about APRA.

While policy changes will take time of course, Malcolm has put himself under pressure to quickly deliver. Tony delivered in spades. He just didn’t successfully communicate that to the people. Now Malcolm has to prove that his reason for ousting Tony, too slow economic reform, was valid.

So long live the Prime Minister. Having ousted a good PM, he better be more than just shiny talk.

Clifford Bennett

Guest writer Clifford Bennett is an international speaker and author who persists in his view that the world is much better placed than the media would have us think. The AFR call him a Guru, Bloomberg News named him the “Most accurate currency forecaster in the world”. He has literally rubbed shoulders with Hillary Clinton, while President Putin has referred to his views in a major speech. Clifford’s accurate economic commentary has earned him international respect and given him the foresight in calling the very start of the DOW JONES rally of the past six years when the media was negative. He has also been bullish about property in Australia since 2008.