Every 2% appreciation in the Australian dollar is a $1 billion loss to the RBA. The control of the rise is simple. The RBA just needed to lower interest rates to bring down our Australian high rate to in turn bring down the Australian dollar.
Like bunnies caught in the spotlights of an oncoming truck, our Reserve Bank has a history of doing too little too late with the result that last year they lost $1.9 billion just on this play alone. Why has the Governor of the RBA still got his job? Why have the Reserve Bank Board still got their jobs? Why isn’t this independent Board declared a failed experiment and folded back under the care of the Government??
If you lost your boss nearly $2 billion last year would you still have your job?
Quite apart from this the Annual Report shows that they spent nearly $1 billion getting experts in to help them! With such experts and such a loss then why would these experts get paid?
I thought the new Treasurer would be a new broom to sweep clean but unfortunately, it appears to me that the Treasurer is a captive of Treasury and Treasury, as I know and you too probably, is always wrong with its predictions.
So will the dollar continue to rise and the Reserve Bank lose more money – your money?
Until next time,
Kevin Young | Club Founder
– So let’s end RBA’s independence – Let’s bring them back under our member of parliaments control!