PaulMay 5

It's kind of ridiculous that the RBA has now lifted interest rates 3 times this year at the same time fuel prices are higher and that's starting to flow through to grocery prices etc

I feel bad for them in that it's the only tool they have and the rules they work under effectively forced their hand.

I feel worse for people, especially young families, already struggling to make ends meet with the cost of living through the roof and salaries not keeping up

The budget next week really needs to do some of the heavy lifting rather than leaving it all to the RBA imo

#auspol

Show threadJason Tubnor 🇦🇺May 5
@HardBeingGreen It is a shit tool that should be dumped on the scrap heap as it doesn't affect all of the expenditure in the economy. There are a lot of people out there with no mortgage spending like its 1999 causing the inflationary issues. Mortgage holders are spending the bare minimum and doing the heavy lifting for others.
Show threadPaulMay 5

@tubsta I think the split is 1/3 own, 1/3 have a mortgage and the last 1/3 rent etc

You're spot on, the 1/3 that own aren't bothered by interest rate rises and potentially benefit if they have money in the bank

Show threadRaymondPierreL3May 6

@HardBeingGreen @tubsta
THe Cash Rate does more than affect mortgages, it is a tool to control NAIRU (non-accelerating inflation rate of unemployment) because current economic thinking (Flawed IMO) is that low unemployment is inflationary. The RBA impacts private capital investments and job growth and everything else flows on from that. From this, you can infer that the RBA does not like full employment, ergo it is not looking after workers’ interests full stop. Mortage rates are set by greedy banks, not the RBA per se (look to Banks posted profits — seems it’s never high enough for shareholders/investors/rentiers).

/forgot where I wanted to go with this toot/

Show threadInsurgo FormicaMay 6
@RaymondPierreL3 @HardBeingGreen @tubsta perhaps someone could calculate the correlation between interest rates and employment over the last decade?
Show threadRaymondPierreL3May 6
@InsurgoFormica
I think there would be a correlation, but in my view it is caused by multiple factors and not by an employment-inflation nexus (despite the NAIRU model). For example, we already know from recent experience with #GreedFlation when #bigMoney and the #Oligopolies were looking at shrinking opportunities to make a killing (super profits and stock market manipulation), that increasing profits is inflationary and has an adverse impact on jobs security, increases cost of living and gives rise to unemployment when small businesses are squeezed out. You’d think that the system would self-balance somewhere if not for greed and corruption and an controversial addiction to growth at all costs. A balanced (regulated) economy could sustain its society where ‘no one is left behind’ but where Millionaires are few and billionaires do not exist. This is no a ‘leftist’ view, simply being humane and compassionate.
Show threadInsurgo Formica
@RaymondPierreL3 you quoted Greg Jericho the other day. I like his analysis on who profits from increased productivity and it's not the workers
May 6 at 2:38amWeb
Show threadJude🇵🇸May 6
@InsurgoFormica @RaymondPierreL3 The great Trickle Down scam!
Show threadRaymondPierreL3May 6
@InsurgoFormica
Yes Greg Jericho (Australia Institute) tells it like it is and makes no bones about it. I regularly read his columns as well as those of Prof John Quiggin (well argued views), Prof Richard Murphy (taxresearch.org.uk) for his excoriation of #NeoLiberalEconomics, and Prof Varoukakis (for his unconventional view) when he writes them