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.
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.
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