GET RID OF THE BANK
RBA ECONOMICS FAIL
RATE CUTS NOT HIKES
The 'Reverse' Bank of Australia just failed economics 1.01, businesses and the people. Again.
It is a litany of incompetence and no idea central banking going back two decades. From being the only bank to raise rates in the GFC, to promising zero rates for years in covid, to hiking rates now?
Why? Will it stop the war?
A policy that has zero impact on the cause, and only adds pain and further inflation to the economy. Economics 1.01: Raise rates to cool an 'over-heating' economy that is generating inflation. This is an economy already on its knees.
Correct monetary policy is to cut rates to reduce the burden on the people and this will also reduce inflation by giving business greater room to absorb increased energy costs.
The RBA again confirms itself the most dangerous and incompetent actor in the Australian economy.
Policy Response: Remove Governor and Board. Appoint Governor from outside the bank. Create an independent of RBA monetary policy committee.
* The Australian Economy is about to have one of its worst recessions in history. Ever.
* The Australian stock market is every bit as diabolical as I said it would be.
* And the RBA is incompetent and intellectually lost by any objective measurement.
* While the government is fully focussed on increasing taxes as a means in its own delusions to add productivity.
All highly problematic.
When they say productivity, they mean putting more people to work in the public service.
The highest ratio of public servants of any nation on earth. Which, by the way, is now completely out of the control of the politicians anyway. Anyone notice the promises to reduce immigration to a sustainable level, while the public service keeps issuing visas as fast as it can? Out of control public servants who openly consider themselves superior to all. While cuddling up with global corporations for the big payout on leaving the service.
We are a country in trouble where the once independent media is now merely the marketing branch for those same global corporations. We are now the 'lost' country. Once the lucky, looked back on with nostalgia.
How to turn it around. There is a path, but it is painful and will now likely happen of its own accord. Severe recession/depression, radical new government elected, I think One Nation may win power with the Nationals, with a savage cleaning out of government spending. Otherwise, even a return of full fuel supplies, some 3-9 months away, will not save us.
As for fuel, when have we seen a Minister so excited about achieving so little? It took over a month to secure another 400 million barrels of diesel. That is just four days supply???? Big fanfare. Dire economic outlook.
Long term bearish Australian equities. Long term bullish the Australian dollar, but there is an immediate risk window evolving around deep recession.
Clifford
