Saturday, 29 December 2012

Fiscal cliff jitters

Looks like we're in for more of a rough ride. Australian stock markets are all a jitter about the US fiscal cliff looming. 

I suspect there's much frustration in the Gillard gov that in an election year the economy may go down the toilet simply because a few buffoons in Washington want to play politics with people's lives. "Cranks and crazies" indeed, as treasurer Wayne Swan said some months back about the Republican party. He does though appear to have toned down his rhetoric some:
The Treasurer, Wayne Swan, lauded Australia's ''resilient'' economy, but warned of international influences. ''We're not immune from global developments,'' Mr Swan said. ''The impact of America's fiscal cliff saga combined with Europe's deep problems is having a real impact on the entire global economy. ''Of course, we're seeing the impact first-hand in Australia with the huge whack we've copped to our revenue base.'' Read more
Well, I changed what's left of my superannuation fund into a safe one 6 months ago. The stupid default fund was only getting a pathetic 1% for an entire year. Here are the results for the 2011-2012 financial year from my Super fund Australian Super. I changed to Australian fixed interest. It's not doing as well in the financial year to date, but with a fiscal cliff looming I'm not going to risk putting it back into the default "Balanced" fund.