The old saying that a week is a long time in politics is as true as ever.  Yesterday Australia’s new government was sworn in. Prime Minister Kevin Rudd has ratified Kyoto. The new cabinet includes a Minister for Climate Change and Water. Industrial relations laws will be rolled back.  

Former Prime Minister John Howard not only lost the election for the Liberal Party - he lost his own seat. The losing Liberal Party is in tatters with new leadership and the loss of senior leaders. This once dominant party has lost almost all power - the Mayor of Brisbane holds the senior-most elected Liberal post.

And the economy is experiencing inflation, reduced corporate profits and a likely rise in interest rates (again). 

It promises to be a rocky road for Kevin Rudd and his team - we all hope his team has the skills and determination to make the change while continuing Australia’s strong economic record.