Several of my posts have stated why RBA increasing interest rates theory is mostly incorrect, instead increasing interest rates is more causing increased inflation than reducing inflation.
     RBA single theory statement increased interest rates taking spending power away from indebted consumers reducing consumer consumption forces businesses to reduce prices has by myself not been noticed. It’s a stupid theory for shallow thinking people whom believe what they’re told by media to be truthful.

     A difficulty to argue against are that increasing interest rates increases business costs the same way higher fuel prices adds costs of doing business which must be passed on to customers.
     Business can’t reduce prices to maintain turnover unless they’re planning to go out of business, intending not to restock whole sale goods which would have raised prices to cover they’re increased costs.
     Reduced sales turnover due to reduced customers caused by reduced customer spending power causing reduced business profit margins also encourages business to increase prices. As all businesses have similar issues needing profit margins and that competition is more a myth than reality being that true capitalist competition drives businesses into bankruptcy competition doesn’t exist, media talk of competition is merely a fake solution statement of market forces propaganda.

     School educated humans are so traumatised by stressful schooling, so self-programmed to believe they’re intelligent regardless, people believe what feels good based on simple short statements of The Chase quiz show knowledge. When asked to think about what increased interest rates are really doing to business, repressed memories of processing school learning studying traumas are felt, which are instantly repressed with anger and or escapism tactics to stop feeling a lifetime of oncoming depression, which is what school education was intended to do.

     Same subject:
     Superannuation fund ‘cbus’ plus I’m sure many other superannuation funds financial statements report large percentage profits based on they’re asset holdings valuations. Superannuation funds and share market companies need inflation to offset asset depreciation. Land may rise in value with real estate speculation and bank leading booms supported by wage inflation allowing auctions to bid up property prices, yet buildings and plant equipment rise in prices associated with replacement costs of labour and materials. Therefore inflation erodes the purchasing power of money increasing prices of assets forcing people to invest in non cash assets: houses; Stock Market shares; Superannuation investments; etc..
     Treasures may state inflation is bad for the economy, yet inflation solves the problem of speculative asset value boom bust crashes leading to many speculator bankruptcies.

     I assume by now fewer than 1% of people clicking on this post title have read this far down the page, If you a reader have read this far down this post, please post a reply “I read the whole post” to prove to me and other posters not every clicked on post title clicking ‘person whom only click on posts to make a quick judgement to then leave posts as though they didn’t do a school teacher’s assigned task, feeling relieved from increased stress, and or to stimulate a brain chemical reward’ whom feel isn’t school educated to be a complete ‘know it all know nothing’ dummy.

steve9