Treasurer Chalmers warns inflation sky-rocketing

Treasurer Chalmers warns inflation sky-rocketing
The RBA is willing to engage in mis-direction to avoid any responsibility.
As a nation we need to act now, as everything to do with monetary policy in this nation is spiralling out of control.

Clifford Bennett Independent Analyst

Yes, we have been saying this for 12 months, and expected the institutional realisation to take about this long.

The big question right now however, is what is the point to be limiting government spending because of inflation, but doing nothing about the Reserve Bank that completely abandoned its responsibilities and allowed this to happen. In fact, continues to allow this to happen with atrocious and ridiculous tiny first rate hike to just 0.35%.

Kindergarten children could do a better job

The Australian economy is now terribly sandwiched between high inflation and the necessity to raise rates toward at least neutral. Because, they did nothing a full year ago when we first raised the alarm that being late on rates returning to normal would become highly problematic.

The completely astounding mis-management off the Australian economy by the RBA has to be urgently and dramatically attended to.

It is absurd that the Treasurer does nothing to correct the biggest problem facing the nation. A totally by normal international standards inept central bank.

Then, there is the galling mis-direction attempt by Deputy Governor Luci Ellis yesterday. Suggesting that up-coming mortgage stress will be due to 'government' stimulus measures alone? Unbelievable. These people are not only totally incompetent, but willing to engage in mis-direction to avoid any responsibility whatsoever for their own absurd policy decisions over many years.

I will say it again, the OECD recommended an urgent review of the RBA board and its charter due to poor performance on monetary policy.

The Treasurer has the power to act

The previous Treasurer completely failed the Australian people by looking the other way as if the fiery car wreck across the road wasn’t happening. Perhaps this had something to do with re-election hopes?

The fresh Treasurer of the nation can serve his country best by taking onboard the OECD recommendation, and my personal recommendation that the Governor and Board must be immediately replaced. Why should a failure of a Governor be allowed to serve out his term?

As a nation we need to act now. As everything to do with monetary policy in this nation is spiralling out of control.

Author

Clifford Bennett

Independent Analyst

With over 35 years of economic and market trading experience, Clifford Bennett (aka Big Call Bennett) is an internationally renowned predictor of the global financial markets, earning titles such as the “World’s most a

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.