Tuesday, June 17, 2008

Australia's banking cartel: "Its under control"

Would you buy a used car from these guys ? They are the mafia bosses behind our banking cartel and they absolutely love the status quo.

Sure - they can't really control inflation ( all they ever seem to do is produce the damn thing by running the printing presses and fractional reserve banking).

But hey, its nothing for the proletariat to worry about, just go back to staring at those official government CPI figures and don't worry about anything else the RBA does. So what if their buddies in the banking and finance sector profit from credit expansion and unbacked reserves ?

Thats the way of our "modern" world and they do it in such enlightened places like Zimbabwe. How's their currency going these days ? About 4 million Zimbabwe dollars to $1 AUD.

Anyway, here's the official spin and meaningless pseudo-scientific doublespeak:

Economy under control: RBA

The Reserve Bank has backed Labor's first budget in 13 years, revealing it believed the accrued surplus would have a contractionary effect on the economy in the year ahead.

In the minutes from the June meeting, the RBA said the surplus, as a ratio of GDP, was higher than expected and should not add to the demand forces in the Australian economy.

The Australian dollar dropped from 94.34 US cents just before the mintutes were released, to 94.10 US cents.

For homeowners, the interest rate cycle could be nearing an end as the RBA emphasised the current interest rate of 7.25% could be cooling the economy by the degree needed to harness inflation.