Let’s look at the facts:
- GDP is struggling and risking a recession at only 0.2% growth,
- Inflation is a Non-Issue at only 1.5%,
- Un-employment is among the highest in world at 6.2%
And The RBA is “Happy” – Their own words! Unbelievable!!!
Why does Australia tolerate having the least talented, poorly performing Central Bank in the world? Why?
Please – Sack the lot of them, Malcolm!
The RBA is no longer a relevant or effective body in regard to setting Australian interest rates appropriately. The major banks increasingly ignore RBA rate moves, even going in a counter direction. The Australian business community and Australian in general are tired of the RBS’s bombasity and self-embellishment, completely oblivious to the fact (proven time and time again), they just do NOT get “the economy of this century”– domestic OR global!
After 15 years in the role, they still do not get it!
Strong growth will now run in unison with low inflation. So there was no need to be hiking rates in the middle of the world’s worst economic crisis since the great depression.
Just how do they get away with having done that? How do they get away with holding rates higher than the rest of the world when we have low inflation, slower economic growth and higher un-employment than anyone comparable ?
They are not held accountable, and hence they get away with being terrible at their jobs. Yet, they give themselves huge pay rises – in the middle of the global crisis? That’s what they were thinking about? They are completely out of step with the rest of the world’s central banks.
JUST LOOK AT THESE CHARTS BELOW! THE HARD DATA TELLS THE TRUTH!
Everything is going in the wrong direction. And it is not caused by external events. It is caused by inept government decisions to be sure, called over-complexity and over-taxation, but it is IN THE MAIN due to our suffering the world’s most lethargic, incapable, incompetent, no-idea, quaint tea sippers of a central bank.
If we are not going to close down the RBA and create a totally new, competent and “of the times” institution in its place, can we at least gain some hope in having it made mandatory for the Governor to be appointed from outside the Stupid Bank.This is not so hard to do – the Treasurer can do this. Otherwise, we will remain trapped in stupidity and perpetuity!
Some people will think these are outrageous words.
But what is really outrageous, is that this situation goes on and on, simply because it is an old school type club of constant self-congratulations, among private bankers, central bankers, and Government Ministers. It really is.
Lack of competition or answerability only ever leads to one outcome –corruption – as we have seen over currency printing, ineptitude, Peter Principle entrenchment, and damage to the rest of the economy.
Come on everyone! This has gone on far too long!
People, speak up! Tell your local member you want the RBA removed or at least the Governor appointed form outside the bank.
I have worked at a senior level and mingled at the highest levels in financial centres all around the world, and I can tell you the RBA is the laughing stock of the global economists and financial market community.
Please, its insufferable… Let’s start making a noise on this issue!
Clifford Bennett is Chief Economist at brushTURKEY
NO Disclaimer : I stand by what I have said.