More and more signs are emerging that our economy is in trouble and the prime minister has admitted he is almost powerless to stop it.
Talk of an interest rate cut is now firmly back on the agenda with a raft of economic data showing the economy is slowing too fast.
Consumers are tightening their belts, which is hurting their business, while inflation is running uncomfortably high, posting today at an unofficial 4.6 per cent.
Prime Minister Kevin Rudd today refused to rule out a recession, saying unfortunately some economic factors are just out of our control.
"We're facing very difficult global economic conditions. I think we've just got to acknowledge that fact."
The Reserve Bank board will meet on Tuesday to discuss rates and Joshua Williamson with TD Securities says there will be plenty to talk about.
"I don't think we'll se a rate cut next Tuesday, I think that's wishful thinking.
"But I that the Reserve Bank will acknowledge the risks to the economy are to the downside and although we've been calling for a December rate cut for over four months now, I think we have to be honest and say we could even see a rate cut before then, maybe even in October or November."
