‘RBA boss Philip Lowe should take responsiblity and resign’
Welcome to the column where you provide content. Henry Ergas suggested the Reserve Bank of Australia’s much-vaunted independence should come with a commensurate measure of accountability. “First, the governor of the Reserve Bank promised that rock-bottom interest rates were here to stay ... and now, with further rate rises looming, the millions of Australians who took the message seriously – and put their money where the RBA’s mouth was – may well wonder if the bank’s governance arrangements are quite right,” he wrote. Too right, said Nick:
“Dr Lowe’s resignation to take responsibility for a calamitous message to prospective borrowers would have raised his stature and that of the RBA. Hanging on reduces both ... the battlements of the RBA have been breached from within just as a Treasurer appears, replete with irrefutable belief in fairy dust, magic beans and leprechauns with pots of gold. Hang on tight, it’s going to be a rough ride.”
George agreed:
“The Reserve Bank did make major errors with that famous prediction of interest rates staying low until 2024. In my opinion, even large errors were committed by lowering interest rates to almost zero during a period of large asset growth. Or rather, creating the asset bubble with the low interest rates.”
Graham wasn’t having it:
“You are trying to lay the majority of the blame on the RBA. This is incorrect. The government is the one that owns the economy ... they create all the challenges that must be addressed by their own actions. The RBA responds in the background looking after monetary policy.”
Gary concurred:
“It has become fashionable to shoot the messenger, particularly by a woke, under-performing government.”
GeoffB asked:
“How can the RBA carry the total blame for raising interest rates to pull money out of circulation when the government’s fiscal policy is pumping more money in to replace what is withdrawn with the projects, subsidies, grants and so on. All that means is the RBA has to raise rates higher to keep up with the inflation caused.”
EABlair said:
“As always a rational and balanced opinion on the vagaries of independent central banks in their role of in the management of economic policy settings. The recent display of Dr Jim constantly referring to the independent RBA while his Assistant Treasurer makes public comments about whether or not the RBA should raise interest rates is a classic example of the risk in the concept. An authoritarian government bullying the designated authority of the central bank.”
Peter’s position:
“The Reserve Bank is trying to control inflation caused by government. Jim Chalmers’ dismal October budget was a complete failure, and did nothing to curb inflation. He gets another chance in May.”
Praise from Bushy Bill:
“Great article in terms of putting the present dilemma into perspective. Current inflation is certainly due to a lot of one off or unusual factors, as well as the normal effects of government pump priming and consumer enthusiasm. The RBA’s actions at present are only effective with the latter, yet constitutes big risks to economic growth.”
Ross reckoned:
“Yes to more accountability. And this must mean going beyond the Board’s performance, and focusing on the inadequate economic models used by the RBA to forecast inflation and other economic variables.
“The economists who design and implement the models at the RBA are the brightest drawn from our best universities. But clearly their models are flawed. There were credible economists around the world who correctly anticipated the inflationary effects of the madness of blowing out the money supply and budget deficits so much during the pandemic. Yet they were ignored by mainstream central bankers, not just in Australia but around the world.
“There is a narrow academic mindset at the RBA and at most central banks which explains their groupthink and failure to see the madness of over-inflating their economies in recent years.”
Wow, said Will:
“Magnificent Henry! Historical context, and clear prescription. Let’s hope the government and the RBA are paying attention.”
Chuckle was serious:
“It seems crazy to me that anyone – even or especially a central banker – should predict the future of interest rates. It also seems crazy to me that anyone should make financial commitments based on those predictions.”
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The Mocker reckoned Lidia Thorpe, returned to the Senate last year “by members of the Gullible Nation, otherwise known as Melbourne inner-city progressives” had taken the Greens and their hapless leader Adam Bandt for the mother of all rides. According to AGGF:
“Thorpe’s leaving the Greens says far more about Bandt than it does about Thorpe. And none of it is any good. The problem with all fringe parties is that when the pressure is on, their lack of leadership is there for everyone to see.”
Josephine said:
“Hilarious summary of a ridiculous situation, a senator that represents... her one person party!”
CrankyMick’s comment:
“I really hope she doesn’t resign from parliament and stays right where she is... Every day she’s there is a reminder to the Greens and their supporters of how they were taken for a ride. And every time she opens her mouth she’ll be a reminder of how silly and dangerous the people the Greens preselect can be. Not to mention providing excellent evidence against the Yes case.”
Trevor was in stitches:
“ ‘Members of the Gullible Nation’. That has to be the best yet. The Mocker has written his best work.”
Filthy Phil from French’s Forest frothed:
“Greens is a deceptive name. Actually a collective of socialists, communists, Marxists, anarchists, fringe radicals and, in Thorpe’s case, single issue Indigenous activists. Must be hard for Adam herding those cats. But voters think they’re getting a party dedicated to the environment, but they get so much more. Anti-capitalist, anti-business, anti-banks, anti-energy, anti-western culture and anti-religious ideology that would tear our social fabric apart, not to mention destroy our economy, jobs and our standard of living, if ever The Greens could form a government. Hopefully it will never happen, but voters need to wake up and think before they vote.”
Maxwell said:
“Thorpe was elected on false pretences and used membership of the Greens to Trojan horse her way into the Senate. Ironically Thorpe is the only politician that has been honest and come clean about what the activist woke left want the voice to achieve; sovereignty for 3 per cent of the population over the other 97 per cent. Albanese has refused to come clean.”
Kara M mused:
“Despite Adam Bandt being a worse leader than Di Natale (who’d have thought that was possible?), somehow the Greens vote keeps growing – the ‘bien pensants’ got for what they wished.”
Mark took aim:
“Loose cannons eventually break through the side of the ship, which then takes on water and sinks. Greens are listing dangerously to the left.”
Neil said:
“I don’t care about ‘the master grifters being grifted’, but I certainly care about a senator showing nothing but contempt for our parliamentary institution and the voters of Victoria and the potential she now has for whipping up hatred. She should resign, she was not elected to pursue her own wants and vision.”
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Prince Harry and wife Meghan Markle have been mercilessly savaged by one of America’s most popular cartoons, South Park, which has depicted the pair on a World Privacy Tour, infuriating locals with their constant demands to be ignored. DD was excited:
“South Park nail it again. Some real take downs over the years! Remember Saddam?”
Ben said:
“Thanks god for South Park – the antidote to cancel culture.”
Said Stella:
“The South Park episode seems to depict what a lot of us are thinking. Their requests for privacy while appearing on Oprah and Netflix and promoting a book with life stories is hypocrisy.”
The Other Guy pointed out:
“You know your lives are being laughed at when you’ve actually become a cartoon.”
Phillipa was impressed:
“Absolute gold. Fabulous that they’re voicing what the majority feel in such a brilliantly cutting way.”
Kara M said:
“Brilliant. I thought the South Park boys had peaked with The Book of Mormon, but they just keep getting better. Well done lads.”
A compliment, said James:
“What an honour to be pilloried by South Park. They’re in good company.”
M mentioned:
“The guys from South Park are national treasures. I remember an interview with Matt Damon. His character had been the target of a South Park episode. His interviewer mentioned it and he laughed saying he had no idea what he had done to piss the South Park people off to cause the episode. H&M got off lightly, Barbara Streisand was absolutely slammed.”
Brendan the Frustrated said:
“Brilliant! Scuttling off to Montecito may not have been their best move, after all.”
Last word to Non illigitimous carborundum:
“Finally, a show about Harry and Meghan I might actually watch.”
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