Reserve Bank keeps official cash rate at 1.5%. Whoopie-Doo & Cupcakes Too, what a bunch of fiscal jerks the Reserve Bank Board is. Cowboys who couldn’t run a pie cart on pay night, who couldn’t organise a booze-up in a brewery. The Reserve Bank has destroyed the assets and income of all retired Australians. Kick their arse.
Scott Morrison is full of it. He is another economic okie from Dudsville. He thinks a Keynesian accelerator is wigwam for a goose’s brindle. The only way to fix the economy is to reduce welfare significantly, abolish negative gearing, introduce a fee for service on Doctor’s visits and increase the cash rate to 3% as well as taking back monetary policy from the Reserve Bank.
The Aussie dollar is being destroyed by the deadbeats at the Reserve Bank (RBA). The Government needs to retake charge of monetary policy from the RBA and increase the cash rate to 3% with effect 1 November 2016. This cash rate of 1.5% is a crime against deposit holders, the salt of the earth.
The commercial banks are doing fine the fly in the ointment is the incompetent Reserve Bank. Sack the Reserve Bank.
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.
What an act infamy to reduce the cash rate further in the face of no justification. Again I ask the Reserve Bank, where is the evidence that low interest rates are working? There is none and never has been any justification for the policy of crashing the cash rate. There is no doubt that the world is going through a change; the exact nature of the new order is yet to be revealed. People are fed up with the same old diet of bullshit from politicians and government officials who are committed to past theories and past formulas that no longer work and who lack the foresight and energy to introduce innovations and change. Take for example the following factors that may affect households: the falling price of petrol, falling mortgage repayments and falling household costs according to the CPI. Yet nowhere has there been a break out of spending or inflationary forces, so longed for by you band of inept bank Johnnies now running the country. The cash rate must be increased immediately. I have spent ten weeks abroad in Asia, and in Ireland and the UK both broken down economies entrenched in clapped out post-war II socialist welfare polices of forever handing out government money to people who will not work, and who will not contribute to productivity. Whereas in Asia, people are working because they have to feed themselves to stay alive, no dole queues there. Keynes relied on low interest rates to stimulate the economy but more importantly the animal spirit to spend and accumulate. Sack the Reserve Bank and get rid of the dead hand of Keynesian lunacy.
Socialism is said to free the worker from capitalist slavery but I’ve never met a Laborite yet, who hasn’t been an authoritarian, control freak. Shorten wants to regulate the banks again. He has lost his memory. If the modern day home owner was subject to the rules and restrictions on lending for domestic home ownership that existed in the bad old days, then he would either be renting or boarding; October, 1989, the variable home loan rate was 17%. The world’s greatest treasurer did one or two things right namely, deregulating the banks and the currency. Moreover, he offered every Australian the opportunity to buy a share of the Commonwealth Bank. No shareholder could agree with Shorten. Keating’s greatest failure was in not deregulating the labour market and abolishing unions. How the country would now hum like a bee and smell like a rose, if he had. Sack the Reserve Bank.
All we have ever heard for the last eight years is how the mortgagee belt is suffering and needs a drop in the mortgage rate. The RBA has obliged. Yet the RBA is required to look after all Australians not just mortgagee whingers. The manufacturing industry wants the Aussie dollar devalued, drop the cash rate. The RBA obliges. What about taking a 25% cut in wages like retirees: Oh no, they holler. The usual suspects have continued to enjoy record levels of welfare under Labor along with the non preforming sectors of the labour force such as the car industry which has got massive cash support. The government and the community seem to forget that retirees have all bought and paid for their homes and have endured greater hardship with Keating’s 18% interest rates than the current namby pamby situation. Anyone over 55 who votes Labor has rocks in their head. Sack the Reserve Bank. A cash rate of 1.5% is an act of terrorism against retirees and the wealth of middle class Australians.
We don’t need an inquiry into the commercial banks but we do need an inquiry into the Reserve Bank and monetary policy. The commercial banks are running a business not a charity for a bunch of welfare and Labor deadbeats. A ridiculously low cash rate is bad for business. The commodity, money is worth more than the current cash rate of 1.5%. The Reserve Bank has or will drive depositors away from the money market run by the commercial banks who will put their saving in other income earning safe havens. Without ready cash a commercial bank can not operate. The Reserve Bank is run by a bunch of unelected hoodlums who have systematically destroyed the Australian economy, destroyed the Australian dollar, destroyed the Equity (share) market and more importantly destroyed the capital wealth of middle class Australia. They have pursued an obsolete policy of driving down the cash rate in the vain belief that this will stimulate investors with capital to borrow and spend. However, it has had the reverse effect and has frightened people into fearing that the future is fraught with economic chaos and failure
We don’t need an inquiry into the commercial banks but we do need an inquiry into the Reserve Bank and monetary policy. The Reserve Bank is run by a bunch of unelected hoodlums who have systematically destroyed the Australian economy, destroyed the Australian dollar, destroyed the Equity (share) market and more importantly destroyed the capital wealth of middle class Australia. They have pursued an obsolete policy of driving down the cash rate in the vain belief that this will stimulate investors with capital to borrow and spend. However, it has had the reverse effect and has frightened people into fearing that the future is fraught with economic chaos and failure.