The battlers on the lower pay scales have recently got a pay rise, quite a small one too, most in their own EBA's gained about $20 a week, not much is it considering how everything seems to be going up.
What does sickens me is how out of touch these big shots at the Reserve Bank seem to be because within a week or two of getting this latest pay rise the Reserve lifts the cash rate by a quarter of a percent, effectively ripping your pay rise right out of your hand and gifting it to themselves for fat bonuses.
I know well the theory of monetary policy and I'm old enough to have seen the worst uncontrolled examples of monetary policy applied defensively and the damage it can do to the general wage earner.
I also know that in real terms monetary policy is the only tool they have in their arsenal to control inflation and keep the current account from blowing out in huge proportions.
However, it seems to me that they have erred in their calculations of how growth indicators are performing due to manipulation of statistics and data to show real growth where stability is really what's occurring, particularly in the building sector where growth does not appear to be happening if you count slabs on ground but growth has occurred if you count new loan applications due to people who own their property having to refinance to put personal money into their businesses, or renovate rather than buy new.
the reading of the data can be interpreted either way, it's guess work when you're up at lofty peaks in your tower looking down on the workers and saying Let them eat cake, isn't it.
3 comments:
Dont know what`s happened to everyone in North Beau Uno,
maybe we`ve finally scared
the commos right off LOL.The Reserve Bank is totally up
Rudd and Swans uno what as
far as setting the ground-
work for the nationalisa-
tion of the economy and the
banking sector. Reserve Bank
Governor Glenn Stevens and
Treasury Boss Ken Henry are
not where they are to make
Rudd and Swan coffee. Watch
out for Ken Henry in partic-
ular, he has been given the
over-empowered individual
authority to re-write aus-
tralia`s tax system and he
is far from apolitical now.
The Reserve Bank, is a part
of Treasury and collectively
they are attempting to bring
about socialism in Australia
by manipulating the economy
according to the political
agenda of the governmnet we
have in power.
You're right about the relationship between the government and the Reserve, which I've tried to put into terms that most people should be able to understand.
The big 4 say they ( in particular the CBA )want rates around the 7% mark and the only reason for that I think is that it is probably the limit of the public's ability to comfortably pay off their home and still have a few bucks left for some small pleasures or for routine maintenance.
However the gap between the reserve rate and what the public pay as the basic homeloan rate has grown over the years particularly in the last two when banks failed to pass on the full cuts as the reserve dropped the cash rate.
There's no doubt that there is a political agenda in controlling the disposable income of the general population and there is also little doubt that as predicted by the big banks late last year rates will go up a quarter of a percent twice more by the end of the year.
It's funny we saw during the end of the Howard stint as PM an uncontrolled upward spiral of interest rates for no reason that was obvious to the battlers out there except the ones given that inflation and the trade deficit were at risk of blowing out, those rises quite probablly spelled the end of Howard in real terms and I do wonder if the continual rises month after month were a strategy to be rid of the government of the day.
Beauracrats and Politicans have no consept fo living in the real world . Price rises,utilities increased against a pitance of a pay rise for us workers. We need to through the whole lot out and start again. The pigs are enjoying the swill too much at our expense.We need to wake up now!!
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