Greatest Credit Squeeze in Australia's History

“We will also want to see the borrowed debt to income levels are being appropriately constrained in anticipation of ‘eventually rising interest rates’”.  So, what does this mean? Shows his real ignorance in my opinion by muzzling the whole economy.  We have low rates around the world and we had low rates in Australia until the monopoly ignored the RBA gave us interest rates that are now 4 times the RBA rate.

However, Wayne wants all lending to be constrained by Paul Keating high-interest rates. The problem with this is that, if and when, we return to the following of high-interest rates and high inflation it will bring with it high wages and therefore the ability to service loans which haven’t grown in size.

Wayne Byers is out of his depth in the property market and him applying a muzzle has no justification. The muzzle is fattening bank profits but starving the citizens of Australia.

Wayne stated on the 21/2/19 that the aim and charter of APRA is to “ensure the safety and soundness of the financial system”.  He has often said that he wants to make our banking system the safest in the world. We all know as a result the majors are the most profitable in the world.

That is one side of the coin, the employment minister department aim it is to create jobs for people and with more jobs, more rising income presumably.  So, we have 2 department heads each championing their own charter but pulling in opposite directions. Byers wants bloated bank profits that come from the pockets of consumers.  The employment department wants consumer spending to create more jobs and keep unemployment down to the traditional 2.3% not over 5%. To have more full time jobs, not part time jobs. So, both of these departments are pulling in opposite directions. One wants banks to have more money the other wants the banks to have less money and consumers more.

Leadership:

This is where sound leadership is vital so that balance is restored and common sense brought to bear.  I believe that it is seriously lacking and has been so since RUDD took control. It has been in a state since then.  In my opinion, we have a banking monopoly. It is also a matter of fact that this monopoly has enjoyed runaway profits while their competitors have not.  This column has produced charts to confirm these facts.

“APRA releases Geoff Summerhayes’ speech ‘The weight of money: A business case for climate risk resilience’” APRA | 29 November 2017

APRA's ignorance on property cycles has caused Australia's biggest credit squeeze and bank profits. Now it is an expert on climate change. Directing capital away from carbon needed for oxygen.

“APRA announces an executive appointment” APRA | 15 November 2017

He is growing his staff and the size of his public empire...funded by you, the tax payer...for no public benefit... to achieve his aim of making the free world's only banking monopoly the "safest in the world".

“APRA eager to wind back lending curbs” Mortgage Business | Friday, 27 October 2017

We were right! Our warnings of APRA’s stupidity.

Kevin Young | Director