Pericles,We both know it is not only who generates the new money for GDP and inflation,it is all about balance.The US Federal Reserve has been totally criminal and self serving.They created the GFC and will again put rates through the roof to destroy our economies.They are about to conjure up another $ trillion in their computers and loan it out at interest to the US people.They are an utter disgrace.First of all they steal by inflating a currency, then have the audacity to loan stolen money back to the worker.As a result our RBA today announced that it would increase rates because some of their money will come here inflating our assests.Who pays? Those on mortages who can least afford it.Who benefits? The big end of town.More and more theft!

The lack of interest on this topic by people on OLO shows me we have many who are bereft of basic economic principals.Even well educated people fail to understand the most simple of concepts.

I don't think it is a lack of understanding on your behalf Pericles, but more about immediate self interest.

So, tell me Arjay.

>>As a result our RBA today announced that it would increase rates<<

Do you actually understand why the RBA is contemplating an increase in interest rates?

I'll give you a clue. The reason they will lift interest rates is to discourage - yes, discourage - excessive borrowing.

If you can get your head around that concept, then you are halfway there.

Not many people are borrowing.NSW has been in a recession for a long time.The real reason Pericles for the RBA pushing up rates is to take up the excessive counterfeit money created by the US Federal Reserve.Some of it comes here inflating our asset values.The fed is about ot create another 4trillion of phoney money.So wrap your brain that reality.

We always have much higher rates here since the big end of town keep pumping our economy dry.They've been doing this for decades.

Thought so.

Me: "Do you actually understand why the RBA is contemplating an increase in interest rates?"

Arjay: "Not many people are borrowing... The real reason Pericles for the RBA pushing up rates is to take up the excessive counterfeit money created by the US Federal Reserve"

But Arjay, who will "take up" the money, if "Not many people are borrowing."?

Try thinking it through again.

Here's a short excerpt from "All the President's Men" to help you along:

"Deep Throat: Follow the money.

Bob Woodward: What do you mean? Where?

Deep Throat: Oh, I can't tell you that.

Bob Woodward: But you could tell me that.

Deep Throat: No, I have to do this my way. You tell me what you know, and I'll confirm. I'll keep you in the right direction if I can, but that's all. Just... follow the money."

If you "follow the money", Arjay, you too will find economic enlightenment, just as surely as Woodward and Bernstein skewered Nixon.