The Reserve Bank’s responsibility is the economic prosperity and welfare of the people of Australia, which it has failed to achieve-sack the Reserve Bank. The Reserve Bank (RBA) has a one-eyed approach to the Australian economy focusing totally and exclusively on the building industry for many reasons but historically, because it had shown to be a quick fix to an ailing or overheating economy. The Reserve Bank has made no secret about that policy approach and in fact it went to great lengths to demonstrate its prowess at being able to pull the appropriate levers and bring the economy back to level flying.
The reality is that the Reserve Bank has never given up on the mono-policy of doing everything it can to stimulate the building industry to the exclusion of all other issues and responsibilities by crashing the cash rate to 1.5%. The Reserve Bank has never spoken of the need to modernise the labour laws by deregulation, restructuring the tax system, building better infrastructure; not so much as a peep just the eternal unctuous massaging of politicians’ egos. No insightful analysis of the economy just the ever present cracker barrel rhetoric best illustrated by the Glass half full homily. In other words, if Australia wants a manufacturing sector it needs either to be at the cutting edge of technology and make the patterns or produce the product. It can do neither; wages and condition are too high to compete on the production line. Tourism, destroying the Aussie dollar might help but you come up against two home truths, again labour inputs are too high and the general dumb insolence of the Aussie hospitality staff. Finally, if you have an abundance of minerals, animals and vegetables then you need to sell them without let or hindrance from gangs of Labor loonies, Greens, environmentalists and animal liberators which abound and threaten our prosperity.
I have repeatedly called for a Royal Commission into the running of the RBA and its handling of monetary policy but since circa 2007, a bunch of fools have formed each successive government since then. Not one of them has had the interest or the intellect to confront the Reserve Bank and sack them for incompetence. Furthermore, I maintain we are in a liquidity trap which The Reserve Bank created-sack the Reserve Bank.