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Pay packets are growing at pretty solid 4.1% (annual). It’s beating inflation. Does that put pressure on the RBA to hike interest rates? ⁦ABC News⁩

21,416 Aufrufe • vor 1 Jahr •via X (Twitter)

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The RBA has to stop selling Australians out. It’s like pulling teeth with these Central Bankers. Manipulating interest rates isn’t part of the solution, it’s part of the problem. The solution to controlling inflation is to build assets to increase the supply of goods and services. In the private sector the cost of a loan with a secured asset is cheaper than an unsecured loan. That’s why interest on credit cards is much higher than interest on housing loans. If the loan defaults you get a security in return. Yet the RBA is claiming a bond secured against an Infrastructure asset would cost more than an unsecured government bond that is secured against the government’s power to tax the population. This is ultimately going to lead to ruin because lending to a country that doesn’t actually have any infrastructure is ultimately going to lead to a sovereign default as the nation can’t produce enough goods and services to pay the interest. Secondly the RBA (right at the end of the clip) claim that they only have a mandate to manage the demand side of the economy. This is completely false. The RBA has a mandate to manage inflation which is a function of both supply and demand. Treasury should not be issuing bonds if they aren’t going to build assets that pay for the interest on the bonds. To just issue debt without ensuring there is a way to pay for it other than taxes, is just selling out Australians to foreign banks. #auspol

Senator Gerard Rennick

23,387 Aufrufe • vor 1 Jahr