Australia is strong - part three

The Reserve Bank of Australia cut rates by 1% down to 3.25%. At the current rate, we'll successfully ZIRP in June. The government is issuing bonds to cover the newfound deficit. In addition, we have an A$42 Billion stimulus package still in the works.

The optimism expressed by the government in the statement about issuing bonds is truly special:

Updating November's Mid-Year Economic and Fiscal Outlook, the government said it expects deepening deficits of more than $30 billion in the following two years and about $25 billion in the year after that.

Pretty good given a sudden slide of A$115 Billion and stimulus of A$42 Billion that you're only A$35 Billion behind your previously forecast A$5 Billion surplus, with another A$55 Billion into the future.

Earlier, the federal government said it expected economic growth to be just 1.0 per cent in 2008-09, slowing to a mere 0.75 per cent in 2009/10.

That's significantly better than the IMF thinks. I'll be sure to revisit both these figures every time you revise them.