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 > Europe's deal gives RBA good reason to sit tight > Comments

Europe's deal gives RBA good reason to sit tight : Comments

By Henry Thornton, published 3/7/2012

If ever there is an iron-clad case for the RBA to sit tight, with monetary policy on the easy side of neutral, today presents such a case.

  1. Pages:
  2. Page 1
  3. All
There's not much to like in the article, which seems to advocate austerity as the solution.
Austerity creates a much smaller economic pie, yet seems to seek to give even larger slices to those who deserve it least? i.e., those who have created the problem?
Private bankers etc, with their ever increasing personal rewards and bonuses.
Earned it seems, by cooking or misrepresenting the books?
Sometimes made to look vastly better with shiploads of derivatives, [complex debt funded instruments,] that allows the self serving, to simply kick the debt can down the road for around a decade or longer, and plenty of time to consolidate their, [cleverly conceived,] real capital gains.
The problem of un-repayable debt remains for Europe.
When the Spanish were bailed out, with loans set at 3%. The even more debt laden Italians, were required as EU partners, to provide 20% of that loan, on which they pay 7%.
So instead of dealing with the debt, they have large simply exacerbated it or kicked a little further down the road; however, as an even larger financial monster, ready to push them into yet another Great Depression.
Doing as you have always done and expecting a different result is lunacy!
I believe the RBA should get off its hands and keep reducing rates until the AUD is beaten down to less than 90cents.
The debt can can't be kicked down the road and must come back and bite those who created it.
Failing banks must be allowed to topple, and then be nationalised, in order they keep acting to underpin affordable economic activity.
We need a growth paradigm, a bigger pie and larger portions for all.
We need tax and other vast simplification reforms, that would allow the RBA to simply lower rates until the hovered semi permanently, at historically low rates.
If that then allows the AUD to fall below 90 cents, the productive economy will thank them!
Rhrosty.
Posted by Rhrosty, Tuesday, 3 July 2012 1:29:50 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