2/2. Paul Keating speaks with Tony Jones, 02 Dec., 2010

Real reform still possible: Keating
http://www.abc.net.au/lateline/content/2010/s3083382.htm

TONY JONES: Well Australia's always trying to find its place in this complex, tricky world and on the economic front we had the first indications yesterday, with the national account figures, that Australia's growth is slowing. What do you see the implications of that being?

PAUL KEATING: Well that's the changeover, as the Treasurer I think has said - you know, as the stimulus has been withdrawn, we're waiting for the kick-up - we're trying to get the pick-up to private demand and investment without a loss of output.

Now it looks like in this quarter we've had some loss of output. And this is the same problem for the United States.

The United States' fiscal stimulus has been withdrawn, and the great fear there is that there won't be enough private demand or investment without a further loss of output.

There's not much output lost here because we've got this enormous drive out of Asia picking up our net exports. This is not the case with the United States. So for them, the loss of output is real.

If the stimulus comes back and they don't get the private investment and private consumption - it doesn't appear as though they're going to have it in the measure they need it - then we start to see an even worse situation in the US. So, we're just a little - this quarter, a little taste of what they've got big time.

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[galactuslives]

@ellicattube Yeah Please explain? I have being watching his interviews on Lateline and almost all he has said has turned out to be accurate. Watch the interview he did in the middle of the GFC, he predicted the bond price of the US dollar would hit rock bottom. He was also expressed his fear if the US defaults on their debts. It did not happen right away but the bond is nearly junk, and the US is living on borrowed money, talk of default is being rife.

[emangi1]

@ellicattube how so?

[ellicattube]

lol Tony is funny when Keating talks out of Tony's depth. Keating is so serious he makes you feel he is right but time has proven him inaccurate and wrong.