MYEFO

well the MYEFO was released yesterday.
The 'blow-out' in the deficit was mainly due to Government decisions and less so to changes in economic parameters.

No government can put the budget into balance whilst Nominal GDP is growing at 3.5%.

If the terms of trade continue to decline this will put more pressure nominal GDP. Clearly this is not the time to have fiscal consolidation as Wayne Swan found out.

Now if lower interest rates start to impact and the currency falls to sensible levels things would be different.

update

Sinclair Davidson says something sensible about MYEFO. Wonders will never cease however he still has no idea about when to undertake fiscal consolidation.

Oh and Joe Hockey is obviously a liar.
UPDATE:
I forgot all about the structural deficit. Matt Cowgill hasn't. And it wasn't due to spending it was due to tax cuts! Mostly but not all due to these tax cuts.

and each time Hockey talks about this his nose gets longer!!