Australia the next Banana Republic?

Apparently, according to those who should be trusted in the areas of economic management, the cost of bananas is going to drive everyone over the edge and is driving up inflation. More like politicians are clutching at straws for feasible excuses for the (inevitable) impact of high petrol prices in all aspects of our lives. Not surprising when you build an economy around oil and you yank the price by 50 percent. Perhaps the connection between the pursuit of a foolish war in the Middle East and the high price of oil, a massive housing bubble, rampant personal debt, a massive overseas trade defecit and a slowing economy are slightly more relevant.

Current prices are $15 a kilo and no respite in sight until the end of the year. Personally I haven't bought a banana for months and I think that is probably true of most people. I do not understand why they don't just import them. New Zealand does and our Kiwi neighbours pay around $2 a kilo (with no documented increase in phony health impacts), that have tied up a government enquiry for four years.

Australia imports everything else, giving it the largest current account deficit in history. Apparently electronic goods, cars and other luxury items are fair game, but bananas no way. It is mind boggling that a small group of growers can close out the market for bananas, to protect their turf. It is hard to imagine other industries being treated so well. Seems to me that it is the poor consumer who loses again.

Funny things those sacred election guaranteeing banana cartels, sponsored by Honest John's Nationalist side kicks. So much for free trade. Australia is about to host the last gasp effort to save the current round of Free (what a misnomer) Trade talks. This is a great example of the all the hypocracy associated with trade. What is the problem with letting in some bananas that are currently rotting the Philippines or other banana producing country. Take the case of oranges, where South Australia has a large part of the Australian market, domestic production is being fed to cattle while Yanqui oranges flood the market.

Poor bananas, will they ever recover from the economy wrecker label. You can just imagine children either not knowing what bananas are or for their parents to refuse to buy them because they lost their house due to interest rate increases driven up by Gucci Banana prices.