Against the optimism and confidence being pushed by Prime Minister Julia Gillard and the $50 billion in government expenditure cuts being proposed by Opposition leader Tony Abbott, there is a very real risk of a major global double dip decline in the next few months.

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As we head into the final month of the election process, every small business needs to be aware that debt repayments and cuts to forward expenditures have replaced the stimulus package as the basis for popular illegitimacy.

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As we enter the "moving forward" campaign of the Gillard Government and the "direct action" commitment of the Abbott advance team, SMEs need to present a consistent charter for change to the incoming administration. Cost cutting is not going to overcome the potential for a significant slowdown and double dip return to turbulent times with rising energy prices and declining business to business opportunities for smaller companies.

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As forecast in columns earlier this year, the market has locked itself down to a square root symbol rather than a W shape as the IMF begins to forecast a strong recovery in the world economy.

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Now that Julia is in the final stages of clearing the decks for her drive back to see the GG, all attention will now turn on the very independent decisions of Glenn Stevens. While the RBA's cash rate is likely to remain unchanged until the end of the silly season, it is likely that there will be significant movements in international support for the Australian dollar as it loses its attractiveness as a currency speculation offer.

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Naturally the media is full of Julia Gillard as Canberra closes down for the winter break. What is less clear is that Wayne Swan is going to be redoing the budget figures as Kevin Rudd and Lindsay Tanner eject from the tough team that has begun the rewrite of the forward estimates to respond to pressures to bring in a surplus earlier than would otherwise be required or expected.

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The sooner we have elections the better. We can then get on to looking to the future, implementing the buried innovation and research and development strategies and exploring some of the options in the long forgotten Rudd Futures Summit. The last couple of years have been characterised by high hopes for a new government and dashed expectations that a change of government makes any difference as we still will be electing a bunch of pollies.

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Now is the time for all smart companies to come to the aid of their country, turn off the shrill screams of the mining masters and plan ahead to get ahead of those that expect China to collapse, commodity prices to fall in a heap and investors rush off to emerging markets with highly unstable administrations. Consumer and business confidence provides a better song from the canaries that sit in the booming minds of the nation.

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Taken together with the figures that have had the Australian Central Bank itching for more rate rises to jump all over inflationary pressures and business over confidence, smart companies will begin building their customer relationships management plans to encourage forward orders and begin making appointments for business-to-business value paths and marketing communications efforts.

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As the iPad reaches Australian shores and the equities market breathes a sigh of relief that the European contagion has been quarantined, it is again time to recognise that sales are a function of consumer expectations.

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