Its the Friday lay day blog, which means very little as it turns out. Today, though it means a short insight into the latest data from the Australian Bureau of Statistics – Private New Capital Expenditure and Expected Expenditure – data for the March-quarter yesterday, which showed that Australia is heading for recession-level private capital formation rates. The data also suggests that the Australian government’s fiscal strategy outlined earlier in May is based on deeply flawed forecasts of private spending and if the investment plans signalled in this data release are realised then the economy will slow substantially over the next 12 months. The fiscal stance in the most recent statement is towards contraction (austerity). In the light of the latest investment expectations revealed in the ABS data release, the Government should abandon their fiscal strategy immediately and announce a significant stimulus package. Unemployment is already rising and will rise further under the current trends. This is another case of neo-liberal austerity white-anting the capacity of the economy to deliver prosperity for all.