Mismanagement of Australia’s monetary system
The Commonwealth Government should manage the complex levers of the economy, and can do so, given our laws. and the RBA currently does not suck money from the economy, nor pump it in directly.
The Commonwealth, by law, could control the monetary levers just as it does control the fiscal levers; in the past this was done, but was abandoned decades ago.
As the recent action by the Commonwealth Bank of Australia reducing mortgage rates for new borrowers shows very clearly, the RBA cash rate does not determine mortgage rates.
Will that now cause our experts to come clean on how the Commonwealth could regain sovereignty in money matters? I hope so!
In my foolish past, I have supplied relatively large papers to independent politicians, and economic commentators explaining the Australian situation. But it seems to be true that if an expert’s pay depends on not knowing something, then the expert will close the eyes to the reality and parrot the myths.
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