Panic Over Money, or Community and Chocolate?

The condition of the global economy is no longer the elephant in the room. Not when your own Australian Prime Minister says the situation has entered a new and damaging phase and takes an unprecedented step to help fix it here.

Yesterday Kevin Rudd made the astonishing announcement that his government would guarantee for the next three years ALL deposits, every cent, in banks, building societies and credit unions. Banks' offshore borrowings and lending to each other would also be guaranteed.

Mr Rudd said he wasn't going to 'gild the lilly' and he didn't.

'We are in the economic equivalent of a rolling national security crisis and the challenges are great,' he said.

Ministers are saying that Australian banks themselves are not in crisis. The plan is a response to a lack of confidence globally.

Australia has four banks with a AAA rating - and the number of such institutions world wide is less than you could count using one person's fingers and toes.

The Government says it is highly unlikely that it will ever need to back these new guarantees. It wants to remove any disadvantage our banks could suffer in dealing throughout the world without such measures. It will charge the banks a fee or insurance premium for this arrangement.

The Australian share market lost it on Friday, panicing to produce the biggest drop since 1987. Our country had been drawn into the vortex of global problems.

Right now it's Monday morning in Australia and all over the week-end Mr Rudd met with his top Ministers and senior public servants. The Treasurer Wayne Swan was in the USA at the G20 meeting, also discussing the crisis.

Yesterday afternoon (Sunday) Mr Rudd announced his decision. He stated in unequivocal terms that the Australian economy would slow and jobs would be lost. And outlined his protection plan for banks as well as everyday people.

He didn't muck around. He said it the way it is, good and bad, and gave details immediately. The news was determined action.

That attitude in itself is a comfort and induces confidence and trust.

So - what can we do about this in our particular neck of the woods (wherever that is)?

We can turn to community that's what! Crisis is a time for families and neighbours to pull together, helping the less well prepared and taking advantage of the increased sense of security that will come as a result.

My plan for me:

Get on with life.

Get out there and say g'day to everyone I come across. Smile.

Visit someone who lives alone.

Don't panic.

Play my happiest music.

Smell the flowers in the garden, and plant some more veggies of my own.

It's almost summer here, so I will get to a beach and wash my troubles away with a swim.

Have a bike ride or a long walk.

And when all this is done - break out a new bar of chocolate!

Love to everyone from

June

STOP PRESS: 12.15pm Australian Eastern Time the Australian Stock Market has so far today gained five percent across the board.

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By the way there's a new blogging community out there for Aussies - Where the Blog Are You?. Check it out through the cockie link on my sidebar. Our mate Lilly is featured blogger this week.