The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
The Forum - On Line Opinion's article discussion area



Syndicate
RSS/XML


RSS 2.0

Main Articles General

Sign In      Register

The Forum > Article Comments > Reserve should resist siren calls for rate cuts > Comments

Reserve should resist siren calls for rate cuts : Comments

By Henry Thornton, published 3/4/2012

Australians have again begun to save because they recognise that saving will increase their families' independence in an uncertain world.

  1. Pages:
  2. Page 1
  3. All
Henry how do you sleep at night knowing what a rort this whole banking system is? Businesses near mine are down 40% this year.I'm down by a 50%.This fractional reserve system of counterfeiting our currency must end.

It is nothing more than a rorting carry trade.We have have $ billions coming in from China selling off our resources/energy cheap and then pay three times the rates that Canada and the US pays for mortgage pays,yet our banks get their money from the likes of the US Federal Reserve for the same price?

If the rates do not drop soon,they will drive our economy so deep into recession that it will not recover like the USA even with 1% rates.Time to get real Henry or find another job.
Posted by Arjay, Tuesday, 3 April 2012 7:42:40 PM
Find out more about this user Visit this user's webpage Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
Arjay,
You have expressed my sentiments exactly. The "Big 4" are one of the biggest routs around. Even if the Reserve cuts rates the banks are just as likely to increase there rates, who is running the economy? Not Wayne Swann. The reserve needs a system to which they can successfully manage monetary policy. If the Reserve had the taxation system in which to manage monetary policy it would even out the economy.
Posted by JustGiveMeALLTheFacts, Tuesday, 10 April 2012 12:44:25 PM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
It is a puzzling line that you are pushing at the moment, Arjay. In the cause of trying to sheet the blame for your business downturn, you have executed a complete backflip on your standard anti-debt rants.

>>Businesses near mine are down 40% this year.I'm down by a 50%.This fractional reserve system of counterfeiting our currency must end<<

It is the "fractional reserve system" that creates the money that banks lend to you, in case you had forgotten.

>>If the rates do not drop soon,they will drive our economy so deep into recession that it will not recover like the USA even with 1% rates.<<

If the rate were to drop, do you think that businesses would borrow a) more or b) less? So what you are asking, is that banks "counterfeit" even more currency than they are already doing.

I think you are becoming very confused, Arjay.

And what is so magical about "1% rates", that they indicate an economy that will not recover? You need to make up your mind, in terms of your personal economic theories, whether you think that lending is "good", in which case we need every bit of the fractional reserve system we can get, or whether the fractional reserve system is "bad", in which case there won't be any money available to lend. Any that is available will command astronomic interest rates, due to its scarcity.

Sorry to hear about your business though. Seriously.
Posted by Pericles, Tuesday, 10 April 2012 7:49:49 PM
Find out more about this user Recommend this comment for deletion Return to top of page Return to Forum Main Page Copy comment URL to clipboard
  1. Pages:
  2. Page 1
  3. All

About Us :: Search :: Discuss :: Feedback :: Legals :: Privacy