Australia Treasurer Peter Costello has warned of a ‘huge tsunami‘ set to engulf global financial markets, in his strongest bid yet for the Australian Reserve Bank not to raise interest rates.

To understand this you need some background. John Howard, the Prime Minister of Australia is facing an election. It will be a damn close run thing and the betting is he will lose. Peter Costello is treasurer and John Howard’s probable successor. If John Howard loses this election Peter Costello is archives.

For the Reserve Bank to raise its rates does not help the party in power to stay in power. This means higher mortgages and this is not a good thing for a sitting party.

Peter Costello said the Chinese economy would at some stage unleash even greater instability on global markets than the United States had with its sub-prime crisis. This is a little difficult to follow but remember this is an election speech and logic is never a strong point.

Peter Costello said, ‘That will be a wild ride when that happens. That will set off a huge tsunami that will go through world financial markets.’

And there will be another tsunami when Peter Costello finds his party has lost the election and, as a direct result, know for certain he will never be the prime minister of Australia.

It is, indeed, possible, China faces some interesting financial times. They will not be caused by Australia which, incidentally, in head count has the same population as Shanghai.
Source: News.com