Anyone expecting a lolly scramble from the government today is going to be disappointed.

At best, one or two old Werther's Originals.

As we’ve been talking about for the last few weeks, this government can’t, politically, splash cash when oil’s forcing inflation up.

The $60 billion borrowed and spent during the pandemic, half not actually on COVID expenses, was fuel on the fire to an already raging inflation inferno. 

The Reserve Bank and government were both blowing into the same sail. It got us up on the foils for a while but ultimately just delayed the pain we’re now still feeling.

The new Governor, imported from Sweeden, will give a key speech later this morning after the market opens with a hint of how they’ll react to the latest international catastrophe to reach our shores.

Any whiff of central government is planning to borrow and spend to cushion the blow would complicate her job.

The reality is, when the shite hits the fan, things get messy. Somebody has to pay. There is no free ride, no free bus. No free train.

If we don’t pay today, we’ll pay tomorrow. 

And let’s not forget, we’re now officially on notice from at least one of the big rating agencies. 

We need to be cutting, not borrowing. 

Balancing the books, not setting them in fire. Again.