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August 10, 2007
Okay, so interest rates increased because of a booming economy running at full capacity. There is a need to apply the monetary brakes to slow down the inflationary forces. The problem for the PM is that in his muscular approach to economic management of global market flows is that his electoral strategy is to spend big time, thereby putting the foot on the accelerator. As Chris Richardson from Access Economics quips, there's lots of blue smoke.
It's a great way to drive Costello's finely tune Formula 1 racing car isn't it?--one foot on the brake and the other on the accelerator. But the problem goes deeper than the flaws highlighted by using the politician's frame the economy as a machine metaphor. Howard's credibility is also involved:

Alan Moir
It's the spin, as he and Costello gave the strong impression that every fall in interest rates has been due to their fantastic abilities and experience as economic managers. Only they could deliver the good times. Trust me the spin says. And the electorate did in 2004. Howard is making the same pitch again--the Government's economic performance is all he has judging from the embattled look in Question Time. Only this time we have 5 interest rate rises on his watch.
Now there is significant disillusionment with Liberals on the issue of broken promises and dishonesty. Howard, in walking from the Liberal party advertisements of 2004 with his ducks and weaves, reinforces that mood. His character and relationship to citizens comes into play. It's now no longer a question of the judgment and experience of the person driving the car. The driver is no longer trusted. He may crash the car.
So the lower white collar and upper collar working families start abandoning the government because of their experience of mortgage stress. Many of these reside in marginal Liberal seats and that spells trouble.
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Gary,
Dennis Shanahan thinks that it is just a case of the PM persuade his party that he has enough credibility with voters to retain government.
We already have finished one of these weeks. So how is Howard doing? Nothing by way of analysis is provided by Shanahan. He sees himself as offering campaign advice, as if he is on the Liberal team. The advice is packaged with cheer up troops Howard has well and truely clawed his way back in the polls.