RBA Wrong Again

There was talk of us losing our AAA rating so the RBA rushed out with a statement that if we lost our triple-A rating everything would be ok. Wrong, wrong, wrong RBA - again!! As you can see from our placards back in 2009 instead of raising rates to 4.75% the RBA then should have taken advice to lower them 2.25%. This would have kept unemployment at 4.3% instead of seeing it rise 50% and sitting there. So RBA wrong again. If we lose the AAA rating, the low cost of funding our deficit will be gone; it will rise. All subsequent loans throughout the community will rise.

Let's end this constant series of mis-information, poor advice and actions coming from the RBA. Let's stop this fairly new experiment with an independent RBA and integrate it back into government control. Let's appoint as its head, someone with good business experience and not someone from a banking background. Let's bring commonsense into board decisions.

Photo taken in 2009, Kevin Young protesting outside the Reserve Bank of Australia to lower rates to 2.5%.

Interest Rates - Up or Down?

Have you joined in our campaign to rob your bank? The chart below shows the RBA rate historically and above that is the bank's lending rate to you which is their rate to business. You can see the profit gap now is greater than at any other time. From the 90's until 2008 you can see up that we had banking competition. Kevin Rudd saw fit in 2009 to over-react to the northern hemisphere financial crisis. His response was to create a banking monopoly. He gave cash and a better rate and a guarantee to the big five. $600b flooded from the non-majors in a flight to safety. They used this new-found Rudd wealth to gobble up this competition. APRA tells us we now have an oligopoly. In my opinion it is a monopoly. An oligopoly is when just a few players control a big market.

I have written many times that what the RBA does with interest rates is immaterial. The banks simply won't pass on any reductions. In the red line above you can see in anticipation of an RBA drop, the banks in collusion raise rates so that when the RBA lower rates they proudly announced that they too would lower rates. Back to where they had them! You were robbed. Now it is your turn to rob them!

Another Most Common Question That I Was Asked Going Around The Country

Who was I voting for and why? My answer was for the Coalition in the Lower House on the basis we need stability and I didn't trust Labor's spend, spend, spend. They will save, save, save, all based on their track record. Interesting thing was that in the Senate I voted against the Coalition and the reason was their superannuation policy. We all know that superannuation is a failure and only favours the finance industry and those with a Self-Managed Super Fund. The average worker has to pay a higher price that is caused by super tax or labour tax while they are working and then they only end up with enough money to live on for 5 years before going onto the Pension of $397 per week!

Then the Coalition comes along and says that they are going to bring in a retrospective tax. People from 2007 thought that after paying tax, bringing up their kids, and paying all expenses, they could then put their savings into super to be there for them in retirement. The Coalition said no! We are going to tax, tax, tax you in retirement.

Where Does This Stop?

If the Liberals can get away with this retrospective activity, what about the next Labor Government? They would also use Liberal's precedent to introduce more retrospective legislation attacking your super money. Remember you've saved it but they want to spend it. Your Club prophesied this over ten years ago. It’s happening.

So that is why I voted against the Coalition in the Senate. Let's keep our fingers crossed that this retrospective legislation gets tossed out as it should. Hard-working tax payers were told over each of the last ten years that they could put money into the fund and they wouldn't invent a tax and that would be it. All those years should not have been wasted.

The good part about the future is all of us have done the same thing and we have bought in a very conservative Senate this time, a Senate I think that has more deep-thinkers concerned about you and me and I think we will see some logical improvements to the Liberal Party's policy.

Same Sex Marriage Plebiscite

In the media there has been many articles about the changing the marriage law. It is everywhere! What do you think? I believe it is going to cost Australian’s Millions to run this campaign, simply just to have the general public decide on what the people can do. Tough choice!

I have an idea. Let's make this an interesting plebiscite where we tell the politicians what we think of the real issues.

• Should we continue with the super levy? Yes or no.
• If we do continue with the super levy, should tax payers be able to use this to pay down their mortgage (funded from overseas borrowings)?
• Should the Senate be abolished, as it is simply an obstructionist house that is long past its use-by date?

What questions would you like to see in the plebiscite? It is going to cost you $200M. Let’s get our dollar value from it at the same time. Please respond to me at virginia.bergman@propertyclub.com.au

I love property!

Kevin Young Club Founder