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The RBA is happy to fund private banks but won’t fund infrastructure – Senate Estimates 28.11.22

The RBA governor is clueless.

He has no understanding of monetary policy.

He cannot distinguish between lending to the private sector and the public sector. He also cannot distinguish between secured and unsecured debt.

He contradicts himself so many times in this conversation it is embarrassing.

First he says the RBA shouldn’t subsidise governments yet he is more than happy to subside private banks. (see prior videos)

He then says the RBA doesn’t decide what projects it should lend on. No one said it should decide what projects it should lend on. However it should lend on projects that governments need to build to provide essential services such as dams and power stations.

Having said the RBA can’t lend to governments, he then admits that the RBA did actually lend to the government in order to destroy the economy because of C vid. In other words he print and spent rather than print and built. Dumb move.

Finally he tries to dismiss my statement that the taxpayers have to pay a mark up on their own currency to the banks by claiming governments don’t borrow from banks they issue bonds. He has no idea. The banks who buy those bonds charge interest on them that is ultimately underwritten by the taxpayer. The banks gets to make a profit on government paper. If the RBA issued the bonds via an infrastructure bank, the interest charged could be returned to the government costing the taxpayers nothing.

The RBA also has no idea of the meaning counter cyclical. Why are they raising interest rates if the cost of everything else is rising. They are only compounding cost of living pressures.

They should expanding the volume of credit to fund the supply of more electricity into the grid, rather than senseless austerity measures that only hurt hard working taxpayers.

Comments

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  1. I like how he said they (the government) have to pay interest at market rate but could provide 0.5% financing to prime banks and subsequently provided no reason as to why. My interest rate currently 5.8%. That's a lot of cream and bonuses for the banks.

  2. The month of December is the anniversary of the fraudulent creation of The Creature From Jekyll Island aka the US Federal Reserve, Centralized Banking House. It was fraudulently passed over night, during Christmas break for these Political Scumbags. Even, then President Woodrow Wilson is on historical record of regretting selling out his own country and the people's future posterity to private and foreign owned, International Banking Interests. Before that, the US Treasury was responsible for printing our currency and supporting lucrative Fair Trade
    vs Free Trade Agreements. Since then the US Federal Reserve has stolen our gold reserves and given us back worthless fiat currency debt notes which they also force on other countries! 🤔 It's called a Monopoly Game for Dummies.

  3. Gas and Coal made $160 billion profit jest this year and we give them a tax relief of $5 billion for the diesel they use That’s what was said by the Prime Minister yesterday. And our criminal Government are giving us The people 1.5 Billion as a household gift towards our power bills .Dont tell me they are Criminals.

  4. Applicable interest is the toxin in the system. Privatised money creation should not exist. Governments could lend and create interest free money with no taxes as taxes would be in the form of a natural and steady inflation as a consequence of government spending based on available skills and resources with no boom and bust biproduct.

  5. Was that Lowe finally admitting he is responsible for inflation. He said if he subsidises funding to the Government it would and up leading to inflation which is exactly what he did with the banks. $188B of free money and hay presto. We have inflation. It’s not supplied side or Ukraine. It is simply demand side and Milton Freedman’s Quantity Supply of Money. If you increase the money supply by 15-18% a year for 2 years it all eventually comes out in inflation. Great job as always Senator Rennick. GM

  6. The problem is when parliament decides to improve infrastructure and builds roads and tunnels etc paid for by gathered funds from taxes once completed they then sell them to private companies who then charge us more for the privilege of using these tunnels roads bridges etc. Both state and federal continually do this. Why not keep these assets in government ownership at a resonable fee and we benefit in the long term, as say, a super fund or improving once again infrastructure.

  7. these creeps are owned by the banks. OWNED. They know what you are saying, Gerrard, but they profit from that margin in the way of party donations. They will never do anything to cut into the profits of their demonic overlords.

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