Today the
RBA raised interest rates again, effecting the lives of millions of Australians,
who less than two years ago were being told by the same RBA that interest rates
would not be going up before at least 2024. Of course this was most likely messaging
encouraging people to spend during a time of economic tightness. Still people
were led down a garden path and are now being made to pay, dearly. What is worse is many
factors driving inflation are out of the hands of Australians. This is pretty
maddening.
Inflation is
being driven by forces you cannot and do not control, are likely even not
supportive of, and so, of course, you need to be made to pay more on your home
loan, because of this. One of those main forces driving inflation is the Australian
government's policy of inflating the economy artificially through immigration.
Such is the
nonsensical nature of economic management in Modern Australia. The government
needs the economy to grow and the easiest way to do that is via immigration.
The Reserve banks needs inflation to go down, the only mechanism they have is
charging more interest. And so these two branches of government[1]
work against each other, both using simplistic approaches that cause incredible
ongoing effects down the economic stream.
You know you
are really being screwed when you are made to pay for a policy that cannot
solve the root issue causing inflation to continue to grow. Raising interest
rates has zero effect on immigration, which is one of the main
admitted drivers of inflation, “The arrival of half a million migrants over
the past year is adding to inflation pressure and will influence the Reserve
Bank of Australia’s interest rate decision next week, a former RBA economist
says.”[2]
Raising interest rates will increase how much profit the banks take in though,
of course, for a time.
The other
main reason inflation is continuing to grow is because of how much money the
government put in the economy during the Covid years. This has rapidly expanded
the economy and probably will not change without an actual recession, that is until
the economy shrinks again, which the current government is rapidly seeking to
stave off with record immigration. This money printing was also something you
cannot control, but must be made to pay for. Though I think it is fair to say
that most Australians at the time approved of these policies, because they
liked getting paid to stay home. They were, however, not thinking of the economic ramifications of cheering this on.
These are
truly wicked times. But when two branches of economic management, the
government and RBA are actively seeking to work against each other, and we are
made to pay, you know we are in a cursed society, one given over to foolishness
and mismanagement. The RBA governor would be better off advocating for dropping
immigration by 70%. That will be much more likely to achieve her targets. But
the truth is neither the RBA or the federal government really are seeking to
serve the Australian people, because if they were, they would not be working
against our way of life so consistently.
List of References
[1] I know
that technically speaking the RBA is independent, and not a branch of the
government. But what else can you call an economic body responsible for the monetary
management of all Australians, than a form of government. Also how immoral is
it for the leaders of a nation to farm out such an important aspect of
government to an unelected branch of banking elites? Maybe I could have said “two
branches of the elites” but I am going to leave it as is, because the RBA is
governing our economic monetary policy in this country, so it right to call
them am arm of government, even if they technically say otherwise.
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