Will the Australian house price souffle rise twice? (1)

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One of the advan­tages of being over­seas right now is that it takes less effort to avoid lis­ten­ing to the insipid dis­course that pass­es for polit­i­cal debate dur­ing this Aus­tralian elec­tion. As Kevin Rudd and Tony Abbott com­pete over who can be more obnox­ious to refugees, I find myself pin­ing for the days of sen­si­ble and humane poli­cies under Mal­colm Fras­er. As politi­cians make them­selves the butt of their own unin­ten­tion­al sup­pos­i­to­ry jokes, I pine for some­one who could deliv­er a killer line against his oppo­nent, rather than against him­self: Paul Keat­ing.

What­ev­er one might say about his poli­cies, Keating’s polit­i­cal rhetoric was mas­ter­ful. My favourite among his many put-downs of oppo­nents was his ref­er­ence to a pre-Rudd polit­i­cal come­back kid, the flam­boy­ant Andrew Pea­cock. Pea­cock beat the dour Howard to become Oppo­si­tion Leader after Hawke’s vic­to­ry in 1983, then resigned in office in response to Howard’s white-anti­ng of his lead­er­ship (plus la change?), and then came back again after Howard lost the next elec­tion. Com­ment­ing on Peacock’s chances of win­ning the elec­tion after that, Keat­ing quipped that “a souf­flé doesn’t rise twice.”

It’s not a Keat­ing orig­i­nal , but it’s a good­ie. And it segues to my top­ic, a souf­flé that clear­ly is ris­ing again right now: Aus­tralian house prices.

Read more: http://www.businessspectator.com.au/article/2013/8/19/economy/will-housing-souffl%C3%A9-rise-twice#ixzz2cNrl3TYk

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About Steve Keen

I am Professor of Economics and Head of Economics, History and Politics at Kingston University London, and a long time critic of conventional economic thought. As well as attacking mainstream thought in Debunking Economics, I am also developing an alternative dynamic approach to economic modelling. The key issue I am tackling here is the prospect for a debt-deflation on the back of the enormous private debts accumulated globally, and our very low rate of inflation.