Australian Politics Forum - Labor Letting The RBA Crash The Economy

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #45 - Sep 10^th, 2024 at 11:48am

Bobby. wrote on Sep 9^th, 2024 at 3:25pm:

Governments never learn - they repeat old mistakes:

https://media.gab.com/system/media_attachments/files/110/473/207/original/e5a6a6...

You needed one to buy a loaf of bread.

You never learn, you just repeat old orthodoxy.

Note: in the US, despite its debt expected to reach $100 trillion by 2030, inflation is falling.

And average incomes can and will still buy a loaf of bread with a few dollars, despite the cost of living crisis; one problem is Musk is expected to become the world's first trillionaire by 2030, an amazing example of market failure and mal-distribution of income......

Back to top

IP Logged

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #46 - Sep 10^th, 2024 at 11:55am

lee wrote on Sep 9^th, 2024 at 5:34pm:

Yep. It is the RBA's fault. Nothing to do with government. That's why governments pillory the RBA. Wink

They pillory the RBA for doing exactly what is required of it.

The RBA has two main tasks: to maintain price stabilkity AND full employment (google RBA Charter)

Problem is, given current economic orthodoxy, it's mission impossible if your only tool is interest rate manipulation.

Back to top

IP Logged

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #47 - Sep 10^th, 2024 at 12:15pm

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

lee wrote on Sep 9^th, 2024 at 5:34pm:

Yep. It is the RBA's fault. Nothing to do with government. That's why governments pillory the RBA. Wink

They pillory the RBA for doing exactly what is required of it.

Doesn't matter if you're an MMT supporter or media commentator, pillorying the RBA for doing what needs to be done is pathetically juvenile.
If you advocate governments should be increasing taxes instead of RBA raising rates etc, than have the "balls" and integrity to state just that.
If you're a nations Treasurer playing deflection politics and watching your citizens incur baked in for years/decades, inflation induced loss of living standards, then get your head out of your arse.
The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The Greens have the "balls" to increase taxes, but the problem is economic orthodoxy - and the powerful, wealthy portion of the electorate with its self interest, is against higher taxes. .

Solution:

The RBA should be demoted to a 'clearing house' for private banks.

The nation's Treasury - issuer of the currency - should ensure sufficient money suppy for the public sector, consistent with resources available for purchase by the government (MMT), to avoid inflation.

Official government interest rates should be near zero, in a mandated full employment scenario (see the 'variable pool' Job Guarantee concept); private banks can compete on loans and interest rates.

I'm almost hoping Albo - following economic orthodoxy -loses the next election (the ALP's primary vote is c. 30% and falling -dismal); yet people know the Coalition are even less likely to support wanted government spending on housing, health and education.

Back to top

IP Logged

John Smith

Gold Member

Online

Australian Politics

Posts: 74739
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #48 - Sep 10^th, 2024 at 6:50pm

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

Back to top

Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

IP Logged

Dnarever Gold Member Offline Australian Politics Posts: 58667 Here Gender:	Re: Labor Letting The RBA Crash The Economy Reply #49 - Sep 10^th, 2024 at 10:24pm Interest rates will stay where they are through this year. The risk is that dropping interest rates will encourage inflation in the opinion of the RBA. They likely try a drop around next March. I doubt there is much risk.
Back to top	IP Logged

goosecat

Gold Member

Offline

Australian Politics

Posts: 619

Re: Labor Letting The RBA Crash The Economy
Reply #50 - Sep 10^th, 2024 at 11:49pm

John Smith wrote on Sep 10^th, 2024 at 6:50pm:

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

The changing age percentage of populace and reliance on interest earning vehicles does have an impact and is calculated into models.
We are not at a stage where it has become counter productive in the existing inflation/interest rate duality.

Back to top

IP Logged

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #51 - Sep 11^th, 2024 at 4:28pm

Dnarever wrote on Sep 10^th, 2024 at 10:24pm:

Interest rates will stay where they are through this year.

Yeh - and Albo's popularity is sinking like a stone result, because some mortagees are forced to sell, and a majority of the population - mortagees plus renters are suffering.

Quote:

The risk is that dropping interest rates will encourage inflation in the opinion of the RBA.

That's the opinion of mainstream neoclassical economists - witch-doctors all of them - including Bullock who said: "people should stop getting haircuts and dental treatment".... the pathetic bitch is getting paid a million bucks to spout crap such as that (...good work if you can get it...)

Quote:

They likely try a drop around next March. I doubt there is much risk.

The risk is recession and the ALP losing the election.

Back to top

IP Logged

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #52 - Sep 11^th, 2024 at 4:34pm

goosecat wrote on Sep 10^th, 2024 at 11:49pm:

John Smith wrote on Sep 10^th, 2024 at 6:50pm:

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

The changing age percentage of populace and reliance on interest earning vehicles does have an impact and is calculated into models.

We are not at a stage where it has become counter productive in the existing inflation/interest rate duality.

But we are at the stage where 2/3rds of the population who have mortgages or who are renters are expected to be cannon fodder for inflation control - a sick, dysfunctional system.

Deplorable.

Back to top

IP Logged

goosecat

Gold Member

Offline

Australian Politics

Posts: 619

Re: Labor Letting The RBA Crash The Economy
Reply #53 - Sep 11^th, 2024 at 5:54pm

thegreatdivide wrote on Sep 11^th, 2024 at 4:34pm:

goosecat wrote on Sep 10^th, 2024 at 11:49pm:

John Smith wrote on Sep 10^th, 2024 at 6:50pm:

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

The changing age percentage of populace and reliance on interest earning vehicles does have an impact and is calculated into models.

We are not at a stage where it has become counter productive in the existing inflation/interest rate duality.

But we are at the stage where 2/3rds of the population who have mortgages or who are renters are expected to be cannon fodder for inflation control - a sick, dysfunctional system.

Deplorable.

Mortgagors, renters, the homeless, the poor etc etc, have always been most affected by supply and demand issues throughout all human existence, under every different economic system tried.

Back to top

IP Logged

Gnads

Gold Member

Offline

Australian Politics

Posts: 29742
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #54 - Sep 11^th, 2024 at 6:06pm

John Smith wrote on Sep 10^th, 2024 at 6:50pm:

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

Not just them .... it's anyone who has money in bank accounts or invested.

How much have you got either in your bank account or invested?

Let alone you property portfolio.

Phuk off with you hypocritical boomer bashing.

You wouldn't be here without them. Roll Eyes

Back to top

"When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid." ~ Ricky Gervais

IP Logged

Gnads

Gold Member

Offline

Australian Politics

Posts: 29742
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #55 - Sep 11^th, 2024 at 6:09pm

thegreatdivide wrote on Sep 11^th, 2024 at 4:28pm:

Dnarever wrote on Sep 10^th, 2024 at 10:24pm:

Interest rates will stay where they are through this year.

Yeh - and Albo's popularity is sinking like a stone result, because some mortagees are forced to sell, and a majority of the population - mortagees plus renters are suffering.

Quote:

The risk is that dropping interest rates will encourage inflation in the opinion of the RBA.

That's the opinion of mainstream neoclassical economists - witch-doctors all of them - including Bullock who said: "people should stop getting haircuts and dental treatment".... the pathetic bitch is getting paid a million bucks to spout crap such as that (...good work if you can get it...)

Quote:

They likely try a drop around next March. I doubt there is much risk.

The risk is recession and the ALP losing the election.

About the only thing I've heard from you of late I agree with.

Back to top

"When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid." ~ Ricky Gervais

IP Logged

Grappler Truth Teller Feller

Gold Member

Offline

Australian Politics

Posts: 84850
Proud pre-1850's NO Voter
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #56 - Sep 11^th, 2024 at 10:28pm

Astounds me that these dorks mumble darkly about 'the jobs market is out of control and is causing inflation'.... never heard such utter bulldust in my life.

That's a quote from some RBA 'economist' sheila tonight on the news... **interprets** you bastards out there are getting it too good and the pressure of not having vast numbers of un- and under-employed people is causing a need to pay you bastards more..... the economy can't sustain feeding you lot well!!

Well - honey - that shows you where the focus of OUR current economy is wrong... in trying to useless joblessness as a way to control inflation when the direct cause of Inflation is costs of living forcing the working dollar to spread further and further every day.

Why don't you apply the same 'reasoning' to the excessive profits of corporations and excessive payouts to shareholders etc?

I'll say it again - the RBA is not a bank - it is an organisation set up to guarantee the never-ending profitability of the banks - and by proxy - large corporations nowadays, along with their shareholders - not one of whom was ever guaranteed a return on investment.

Like all those social science 'commissions' which are in reality star chambers and petty dictators of their whim to suit minorities, the RBA should cop the Tarneen treatment and be burnt to the ground (metaphorically of course)

Tell me again how a corporation can exist for ten years, pay out a dividend each year even when every year is an accounting loss, and then fold up or 're-structure' leaving debts of millions, then start again with the same Usual Suspects at the helm ....

Back to top

“Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence.”
― John Adams

IP Logged

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #57 - Sep 12^th, 2024 at 1:09pm

goosecat wrote on Sep 11^th, 2024 at 5:54pm:

thegreatdivide wrote on Sep 11^th, 2024 at 4:34pm:

goosecat wrote on Sep 10^th, 2024 at 11:49pm:

John Smith wrote on Sep 10^th, 2024 at 6:50pm:

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

The changing age percentage of populace and reliance on interest earning vehicles does have an impact and is calculated into models.

We are not at a stage where it has become counter productive in the existing inflation/interest rate duality.

But we are at the stage where 2/3rds of the population who have mortgages or who are renters are expected to be cannon fodder for inflation control - a sick, dysfunctional system.

Deplorable.

Mortgagors, renters, the homeless, the poor etc etc, have always been most affected by supply and demand issues throughout all human existence, under every different economic system tried.

From a google article on inflation in the Soviet command economy:

"The Soviet system of price controls prevented inflation, but it also created persistent shortages of food and consumer goods".

There's a clue to a functional economic system: if a nation can create sufficient productive capacity (or even excess capacity , as in China which is now experiencing deflation), then price controls on essential goods and services will be a superior method of inflation cotrol.

Obsolete mainstream economic orthodoxy is accusing China of "overcapacity", which is nonsense; "overcapacity" means prices can fall, enabling living standards to rise, without inflation.

Unfortunately, China hasn't woken up yet that it's Treasury can subsidize Chinese consumption by low wage earners, to increase effective local demand while the West is trying to lock China out of its (US and EU) markets because the West can't compete eg in EVs and PVs.

Today Bernie Fraser (former RBA governor) has said the RBA is causing too much distress with its interest rate policy.

He's correct, but he didn't say what the RBA SHOULD be doing.

Such is the consequence of following flat-earth, obsolete mainstream neoclassical economics as some sort of unchangeable law of nature, like gravity.

Back to top

IP Logged

thegreatdivide

Gold Member

Offline

Australian Politics 

Posts: 12997
Gender: male

Re: Labor Letting The RBA Crash The Economy
Reply #58 - Sep 12^th, 2024 at 1:27pm

Gnads wrote on Sep 11^th, 2024 at 6:06pm:

John Smith wrote on Sep 10^th, 2024 at 6:50pm:

goosecat wrote on Sep 9^th, 2024 at 8:45pm:

The reality is; these are the current tools we have and they wont/cant be suddenly changed no matter what your view. The RBA is doing exactly as it should.

The RBA needs to update it's tools. Raising interest rates puts more money in the economy for those with the most disposable income (self funded retirees). The only ones that tighten their belts are those with the least disposable income.

There are approx. 1.9m self funded retirees handed extra money to spend every time rates are increased. Thats a lot of extra money in an economy they are trying to slow down.

Not just them .... it's anyone who has money in bank accounts or invested.

How much have you got either in your bank account or invested?

Let alone you property portfolio.

Phuk off with you hypocritical boomer bashing.

You wouldn't be here without them. Roll Eyes

I don't think John is "boomer bashing"; self-funded retirees - which all boomers are certainly not - are certainly among the groups (a minority of the population) who ARE benefitting from high RBA interest- rate settings.

Back to top

IP Logged

goosecat

Gold Member

Offline

Australian Politics

Posts: 619

Re: Labor Letting The RBA Crash The Economy
Reply #59 - Sep 12^th, 2024 at 2:04pm

And just like that we see yet more evidence of low IQ thinkers masquerading as something other, ensconced in a sea of Dunning Kruger reality.
The RBA is but a product and indeed creation of the political system. It has a limited amount of tools to use to help the ill-informed, self deluded, uneducated masses regarding "living within your means" and it's affects on inflation.
You should be able to read the tea leaves and see why multiple sources go on about things like buying coffee every day and Hairdresser visits etc but the masses are generally stupid and need protecting from themselves at times.
If you keep paying the exorbitant price of any item, the supplier will keep raising the prices until you don't. If you want more direct government interference and price setting control, than that should be your target and argument.
In the meantime the RBA is doing exactly as it must. Forcing the average imbecile, as much as possible within their available tools, to stop underwriting price increases by continuing to demonstrate the inability to understand the importance of actually saying and demonstrating the maxim; "bugger you price gouging suppliers, we're not paying that,"
If it requires better education throughout the education system at all levels to grasp that foundational truth, then that is another target to aim at.

Back to top

« Last Edit: Sep 12^th, 2024 at 2:47pm by goosecat »

IP Logged