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[SG]

The case is finally closed, the cut in interest rates proves beyond a shadow of doubt that Kruddley Do-Nothing and his team have no idea how to manage the economy.  That's not to say that the cut isn't a good idea, it's just too late.  Far too late.  Having allowed the RBA to slash and burn the economy (whoops, sorry to those newly unemployed people or those who have lost their house), and in fact encouraged it with all his talk of the "inflation genie" in order to score political points, Kruddley Do-Nothing abrogated his responsibility to manage the economy for the people.  Blind Freddie could see local demand was, and still is, a lesser contributor to inflation than overseas, particularly Chinese, demand.  In other words, demand which a rise in Australian interest rates will have close to zero effect on damping.  Which is precisely what has happened.

And for those screaming about an "independent" RBA, why is it that Costello could call it correctly and put pressure on them to keep rates down whereas Do-Nothing & Co simply stood back and watched?  Inflation hasn't changed, there is no logical change in circumstances beyond the information that was available previously.  Other than the fact they have unnecessarily savaged the economy that is.

All of which points to a collossal failure by the RBA to accurately read the situation, and a double failure by the Federal Government, not only did Do-Nothing and Co fail to read the signs they simply abandoned their duty to represent our best interests and manage the RBA.  I guess it's time for another committee, heaven knows we have given up hope on any real action.  They can't even get rid of Workchoices, the whole reason thousands voted for them.  Foolishly they overlooked their lack of economic credentials for teh warm fuzzy of platitudes.

Fool me once, shame on you, fool me twice shame on me.  Let's hope teh Australian populace have learned.  Bring on the double dissolution.

SG

[Mr. Blonde]

The thing that pisses me off about Costello is that he just sits there on the backbench, with that smug smile on his face, and does nothing. He knows its all gone to shit, yet he doesn't stand up and argue. He doesn't put pressure on Rudd et al. to do anything.

Maybe if Rudd's budget wasn't so shit, the RBA wouldn't have felt the need to rise interest rates so much in the first place in the hope of stiffling the inflation that the budget evidently failed to consider.

[Lord Biscuit©]

So, how many times was it that we saw Costello saying on TV that he saw not reason that the RBA should lift interest rates, and then the RBA lifting interest rates? 7 times? Did he really have any idea at all about how an economy works? Clearly not, which is why the RBA controls interest rates.

[Mr. Blonde]

I don't watch TV. Costello should try harder and reach mediums I use on a daily basis. Like electro music. Or Beatles records

[Phenolphthalein]

Apparently, bogan guy housemate's house price went up 80 grand, is that still fail?

[SG]

So, how many times was it that we saw Costello saying on TV that he saw not reason that the RBA should lift interest rates, and then the RBA lifting interest rates? 7 times? Did he really have any idea at all about how an economy works? Clearly not, which is why the RBA controls interest rates.

The RBA themselves were the ones who stated Costello gave them a hell of a hard time over increasing rates.  Beyond the easy "bad for votes" type arguments.

Clearly, given events, he was correct.  It's not even particularly new theory.  But Kruddley Do-Nothing had to crap on about the "inflaion genie" being "out of the bottle" when it most certainly wasn't/isn't in the traditional context (when rate rises would be applicable).

The RBA controls rates.

The politicians are elected to manage Australia.

The former does not mean that the latter must not interfere with teh RBA, independence does not mean pollies can abrogate their responsibilities.

Stevens fucked up big time and should resign.  Plenty o people have lost houses and/or jobs because he got it so wrong.

Kruddley Do-Nothing should be pilloried and Nelson should take every opportunity to give him a double dissolution trigger.

SG

[Lord Biscuit©]

So hang on, for the first time in 7 years, interest rates drop, and you find this an abomination? However, when rate were going up, you though it was all good? I think you might be a little out of line with every home owner in Australia there SG 

[SG]

So hang on, for the first time in 7 years, interest rates drop, and you find this an abomination? However, when rate were going up, you though it was all good? I think you might be a little out of line with every home owner in Australia there SG 

Do you READ Biccie?

I am arguing the rate drop was FAR too slow in coming.

On a personal level I like high itnerest rates, keeps the dollar strong for my overseas trips, brings house prices down so I can buy more, decreases building activity so there is less rental stock available for a growing population, any number of reasons at a PERSONAL level.

More importantly looking at teh national level Kruddley Do-Nothing has fucked the economy by not forcing stimulatory measures prio to the slowdown.  Again, not really an issue for me but it doesn't really matter what interest rates are if you're a factory hand or semi skilled worker laid off becuase the cost of capital and teh stronger dollar makes it easier to buy in from overseas.  Imagine that, zero income after losing a long term job, all because Kruddley Do-Nothing had to insist on point scoring.

SG

[Nev Bartos]

The case is finally closed

Not really.  I reckon the RBA has done a sterling job.
Their aim is to help gradual economic growth whilst avoiding booms & busts.
People & businesses suffer a lot more if interest rates & inflation fluctuate wildly
They've been pretty stable over the last decade & anybody who couldn't handle a rate increase of a few % over that time was over-leveraged.
Let's just ignore Workchoices as far as people who've lost their job.

Howard went on a vote buying spree last year & Krudd matched him virtually dollar fordollar.
After their warnings were ignored, the RBA swung the interest rate banhammer.
So yep, Krudd can be blamed for the last few raises.  He was matching Howard's bribes to get the votes.   
Such a shame that Costello didn't have the balls to challenge Howard for the leadership, or at least tell him to pull his pork-barreling head in.

I'd trust the independence of the RBa over a blue or red flag waving pollie any day.

[SG]

Not really.  I reckon the RBA has done a sterling job.

One assumes you are a public servant with no effects felt directly from the real economy.

Their aim is to help gradual economic growth whilst avoiding booms & busts.

And given they are bringing/have brought a serious bust down on a shitload of people that would indicate failure.

Contrary to your initial claim of a sterling job.

But hey, as long as they're not cutting YOUR job or causing YOU to lose YOUR house unecessarily I guess everything is cool.

They've been pretty stable over the last decade & anybody who couldn't handle a rate increase of a few % over that time was over-leveraged.

Ah, the Turnbull argument....

Let's just ignore Workchoices as far as people who've lost their job.

Um, Workchoices actually got a lot of people employed, record low and all that...

I'd trust the independence of the RBa over a blue or red flag waving pollie any day.

The lack of the former does not indicate the latter.

As I have stated, RBA independence is a good thing, equally there must be some checks and balances on their power.

SG

[Nev Bartos]

The RBA hasn't caused a serious bust.
They've been trying to slow the boom for years with gradual interest rate rises so that the inevitable downturn didn't hit a s hard.
Now that the world economy is wobbly, they've changed tack.
KRudd & JHo are probably responsible for the last few rises, but don't deserve any credit for the recent drop.

Funnily enough, the sub-prime crisis has a lot to do with a wobbly world economy.
A US housing boom fuelled by low interest rates that really did go bust.
if the RBA hadn't been raising rates , imagine what house prices would be like now in Aus.
At least none of our banks need bailing out by the govt yet.

[SG]

The RBA hasn't caused a serious bust.
They've been trying to slow the boom for years with gradual interest rate rises so that the inevitable downturn didn't hit a s hard.
Now that the world economy is wobbly, they've changed tack.
KRudd & JHo are probably responsible for the last few rises, but don't deserve any credit for the recent drop.

Funnily enough, the sub-prime crisis has a lot to do with a wobbly world economy.
A US housing boom fuelled by low interest rates that really did go bust.
if the RBA hadn't been raising rates , imagine what house prices would be like now in Aus.
At least none of our banks need bailing out by the govt yet.

Fool.

SG

[Lord Biscuit©]

i realise you're an avid reader of The Australian SG, but you really mustn't believe everything you read.

It would seem clear that the Rudd government has bought the economy under control far faster than anyone, including the RBA, had thought they could. Hence the RBA being caught slightly  (and only very slighty) on the hop.

...and Workchoices? Even the libs don't want to mention that old thing. Employment isn't just about reducing the unemployment figures. I guess it's enough to fool your average one-eyed punter, but if you take more than a cursory glance at employment statistics, you'll see there has been no real improvement.

[SG]

i realise you're an avid reader of The Australian SG, but you really mustn't believe everything you read.

I think you'll find I was on this before they got hold of it.

Even Janet, my beloved, took a while to come round to may way of thinking.

I had to withold the crop for two days before she begged enough and relented and took my view.

It would seem clear that the Rudd government has bought the economy under control far faster than anyone, including the RBA, had thought they could.

Mr Seinfeld, calling Mr Seinfeld!

Rudd and Swan bringing the economy under control?

How can doing nothing bring the thing under control?

They abrogated their responsibilities and let the bureaucrats loose to wreck thing to a ridiculous extent.

Hence the RBA being caught slightly  (and only very slighty) on the hop.

Playing hopscotch was probably their decision making process...

...and Workchoices? Even the libs don't want to mention that old thing.

Julie Bishop.

Employment isn't just about reducing the unemployment figures. I guess it's enough to fool your average one-eyed punter, but if you take more than a cursory glance at employment statistics, you'll see there has been no real improvement.

Except to those who are not one eyed lefties there haas.

We go back to our old debates about casual jobs and 1 hour working claims only to find that the real facts are that real employment improved under the Libs.  True, plenty of that was due to mining booming, that has only got ever hotter as a sector with Fortescue and the like coming on line.
So Kruddley Do-Nothing has let the RBA wreck the economy (construction data as a leading indicator that this is occurring plus business closures plus reducing numbers of job ads) for no reason beyond point scoring.

Bad luck if you feel the downturn chaps.

SG

[Nev Bartos]

Fool.

SG

"It's the (world) economy, stupid"