See how the Reserve Bank has breached their charter!

1.

RBA we say No Way!
Inflation is already on the low side of 2-3% band (2.3%) So why raise rates? (Breach of a, b, c&d).
 

RBA attacks the poor (they spend the biggest percentage of their income on interest).
Unemployment is rising! Doubled in 1 ½ years (Breach of b).
 

40.

Calling for a rate drop to 2.5%
100% of economists were pushing for a rate increase at the December 1 meeting. Along with this prediction was that December retail sales would increase 0.2%. The day after the rate announcement the official figures showed retail figures fell by a steep 0.7%!
 

RBA is a wealth hazard
A growing housing shortage is setting the scene for the "mother of all" housing booms! (They understand the shortage is driving up the price, why can't the RBA understand this basic economic fundamental? Back to school for the RBA!)
 

Reasons Rates Should Come Down
Why would you raise rates at a time when spending is trending down?
Why would you raise rates at a time when much needed housing funding is down?

RBA is robbing prosperity.

RBA is robbing prosperity.

RBA we say No Way!
The RBA is overseeing an economy which is building half the amount of dwellings which it did 25 years ago! This is despite the rising populations of 1.6 million extra in QLD, 1.2 million extra in VIC and 1.8 million extra in NSW  (Breach of c)

A breach of all four is evidence of the Reserve Banks collapse in credibility.  In the financial year ending 2008 it realised it had "unrealised valuation loss of almost $1.3 billion".  They reported this loss because of "the strength of the Australian dollar".  So their rates caused the strengthening of the Australian dollar yet they couldn't see this happening and then took a $1.3 billion punch in the face!  Evidence of extremely poor management and poor crystal ball.  The RBA needs a knockout punch, when will this come?
 

91.

RBA world highest mortgage rates saw a near 25% increase in mortgages in arrears in 2010. RBA high rates & credit squeeze has forced down rental supply forcing hundreds of thousands into substandard rentals @ exorbitant rates.
 

Banks remain top target for rate collusion – courier mail, 26 Jan 2011
'We think there are a number of (other) industries that immediately come to mind that could be subject to this form of regulation' – ACCC's Graeme Samuel
 

RBA we say No Way! 
RBA has caused the high Australian dollar which is exporting our wealth cheaply to overseas buyers of our goods and services.  A great example of that is that on November 9th 2010 treasury revenue estimates from the mining tax went from $10.5 billion down to $7.4 billion BLAMING THE STRONG Australian dollar.
 

How does out Reserve bank compare to the USA?  The US GDP last year grew at the fastest rate in 5 years.  From a basket case to a wealth growth in wealth creation greater than Australia.  Surely this indicates that our Reserve Bank deserves the dunces cap!
 

With most economists ignoring negative economic readings abounding at the moment, instead focusing on the expected positive developments ahead, Malcolm Wood, head of investment strategy at Morgan Stanley Smith Barney poses the question, could a slow economy prompt the next move in interest rates down? - Malcolm Wood, Switzer 18/02/2011
 

On Switzer on Friday 11 March 2011, Dr John Hussein (who used to work at the RBA prior to becoming a professor at the NSW university and later leader of the liberal party) stated that the RBA have gone too far and that they are too one point focussed, that is interest rates and that he believes their next movement should be down.  He also stated that there is a 'herd' mentality that all these economist are directly or indirectly employed by banks and the Reserve Banks and work as a 'herd' each telling one another that rates should go up to bring down inflation.  He commented on the fact that many items were going down in price due to market forces.  He pointed to all sectors of the economy except for the resources sector being flat and that the next move should be down.  An interesting loan voice in the wilderness, can we add to it?
 

"RBA to speed economy is false, High RBA dollar is exporting our wealth"
 

RBA is giving you money to the banks.  The excuse? Mining 'boom' will make you rich… so keep you poor, banks rich.
 

http://www.switzerbroker.com.au/the-experts/christopher-joye/the-demise-of-inflation-targeting/
 
The above proves that high rates don't bring down inflation caused by government charges (alcohol & tobacco, health, electricity…).  Rent inflation (from soaring mortgage rates from inflation) & imported pharmaceuticals, these were the causes of inflation in the last 18 months. 
In short, the RBA is redundant and is causing inflation.
 

Living standards!
 Mr Edwards said poor affordability was making people squeeze into smaller housing and forcing young people to stay at home longer.  He said increasing stock levels would not change this.
-  Council said in its latest report that the nation was 178,000 dwellings short, which would rise to 308,000 by 2014 if building did not pick up.
 

RBA we say No Way!
"Stronger than expected margin trends revealed in the banks first half record results" comment from AFR 10 March 2011.  Strange that the reverse was stated by the Commonwealth bank to hike rates above and beyond the RBA ill-conceived rate increase.  Strange that the RBA, the bank's watchdog, made no act to reprimand CBA for its lies in the media to justify the rate hike despite it admitting later "strong than expected margins'.  Yet another breach by the Reserve Bank.
 

RBA wrong again! For the last 18 months RBA has saddled us with the world's highest interest rates to strangle consumer spending.  They claim this is to enable resources to go to the mining sector.  Again, insufficient research from the RBA.  ABS have just ruled that in the mining sector there were just 8100 vacancies last month compared to 50,000 vacancies in other professions outside of the mining sector.  As a result the RBA have caused massive unemployment resulting from this lack of spending.  ABS shows that there are 600,000 people who want a job and can't get a job. 

Traditionally the unemployment rate in a low interest rate environment is 3.2%.  It was 4% just 2 years ago and it is now up on a high 5%.  The RBA is breaching its charter to maintain full employment and increase living standards.
 

RBA is robbing prosperity.
Australian dwelling sales dropped by more than 19% in 2010 to reach their lowest level in a decade.  Who is responsible? The Reserve Bank's world high interest rates that have consistently pounded suppliers out of the market for the past 8 years.  In breach of their charter to increase living standards and employment.
 

In the three months to the end of February the figures show that we have 600,000 people registered as looking for work and just 195,000 vacancies.  So we have, care of the RBA strangling the economy, 600,000 families short of cash, worried about paying rent or mortgage and definitely not contributing to the economy either in production or in paying taxes.  Is the RBA the Redundant Bank of Australia?
 

As a direct consequence of this quite unnecessary tightening and abuse of its blunt instrument of high rates we have seen Kleenmaid go to the wall on the back of lack of sufficient building, the departure of Fisher & Paykal back to NZ at the expense of hundreds of Australian jobs.  More recently we have seen Angus & Robertson book stores go and now as of March Dianna Ferrari, Colorado, Jag, Williams and Mathers are in receivership.  When will this mismanagement of the Australian living standards by the Reserve Bank be called in to question by the media and out parliament?
 

You know that my opinion is that the Reserve Bank, instead of being a watchdog, is properly an acronym for 'Rich Bankers Association'.  Perhaps a pointer towards this is the recent conviction of a former Macquarie Bank employee who netted almost $1.5million through insider trading.  He has been jailed for, wait for it, wait for it, 18 months, yet none of the money has been recovered! Had he walked in to a bank with a gun it may have been 5 years for robbing $5,000.  'Rich Bankers Association' sounds like a pretty good title don't you think.
 

It has just been announced on the news that the budget is under pressure because tax receipts are down from individuals and businesses.  This clearly indicates that the RBA has misread the economy.  It is not going gang busters, it did not need the heavy handed rate increases that have been inflicted.  We need an enquiry in to the 'Redundant Bank of Australia'.  Why have it? What does it achieve? It is not reducing inflation. 10/04/2011
 

RBA is allowing bank greed to go totally out of control, we saw after Kevin Rudd's AAA guarantee insuring the two major banks had a huge pricing advantage and wiped out the supply of funds to the competition, the banks went about abusing their monopoly power.  To their broker's network supplying client they quickly advised that they would halve the fees that they would pay them!  This sent many small businesses doing so, go broke.  This greed continued of course to show record upon record profits for the banking sector at the expense of the rest of the community.  This went without any checks from the RBA.  In fact they even approved the CBA and the WBC before that increasing rates over and above the RBA's rate increases (one wonders who's going to be the next bank to break ranks and also push rates up higher, will it be NAB? Or will it be ANZ's turn to be the bad boy, but let's not say there is a Cartel out there or a monopoly, heaven forbid!) But it gets worse, the latest attack on your pocket is that the banks have cleverly formed a company which they all own, the big 4 and they control the amount you are paying at eftpos.  Originally they paid traders 0.5c for every transaction and now they have dictated that all the traders will actually pay them the 0.5c except Woolworths and Coles who are big enough to stand up to the banks.  What is the RBA doing about this? You guessed it, nothing! The attack on your purse and pocket continues.
 

Misallocation of resources by the RBA.  Trolling through my old files I found that in 1999 Westpac announced a record net profit for the year of $1.46 billion.  In the last quarter they announced a profit of $1.6 billion! Just for the quarter.  The RBA rate at the time was 5% and the bank claimed that its margin was 1.5% and was lending money out at a variable rate of 6.8% and it just raised it 025% in concert with the RBA's move.  So despite the GFC the RBA has seen a misallocation of resources as funds come from you and me in to the banks net profit.  This bloated profit means that people aren't spending it or creating real jobs.  The RBA is starving all the rest of the resources of the country in favour of a simply and obviously dysfunctional monopolistic fincaial system.
 

Breach on living standard
It's April 2011 and our treasurer puts out a warning that the economy will take a huge hit following the number of Qld natural disasters.  He talks in terms of a hit to GDP of 0.75% which is a huge 30% of expected GDP.  The response to this hit on living standards of all Australians from the RBA? None! No doubt Glen Stevens repeated his remark of previous years "well that's the way it is".
 

Mid April 2011 and treasury have released figures that there has been a $13 billion hit to the economy.  They know that, we know that but the RBA doesn't.  Are they asleep at the wheel? Why aren't we on 2% rate giving a 4% housing rate? Why aren't we joining the rest of the world's low rate environment that they have enjoyed for the last 10 years giving them low interest rates and no inflation? It is time to ask 'is the RBA redundant?"
 

 RBA increases our dwelling costs.
"Forecasting a significant deficit in housing is warning, in effect, that something has to give… We need to increase supply and [we] need to increase it dramatically if we want to maintain… further growth in our economy."
Owen McDonald, Chair of the National Housing Supply Council.
 

24/06/2011 – We know that rates are a blunt instrument that hurt all Australian's and only make banks richer.  The Government has the power to use a better instrument.  This is now being used by the Chinese to control their inflation which looks like it will peak at 6% before dropping back to 4% but there they are simply asking the banks to deposit a lot of their cash back with the government and give them a tiny 1.6% return on their money.  There is rumour that they are going to increase this RRR to 23%.  The government can also direct banks to stop lending in certain areas or increase lending in certain areas.  Australia needs more leaders not just the one blunt instrument.
 

A new oath for the RBA! Sigh! Wishful thinking!!
Quote from former Prime Minister Ben Chifley from his famous "Light on the Hill" speech - 1949: We are a movement that has been built up to bring better conditions to the people; better standards of living, greater happiness to the mass of the people.  We have a great objective – the light on the hill - which we aim to reach by working the betterment of mankind not only here but anywhere we may give a helping hand.
 

The U.S. Federal Reserve is easing their policy to help ease unemployment. Yet we are the only country to have more unemployed now than before the GFC. Unemployment is up a massive 30%, voiding the RBA's charter. Months of decline in the building of new dwellings is causing rent inflation, again voiding the RBA's charter.
 

RBA Governor Glenn Stevens cited "quite robust" Chinese growth and a "moderate expansion" in the U.S. as reasons for holding rates this month (February 2012), even after Australia's 2011 jobs market was the weakest in 19 years.
 

117.

29 June 2011 the Greens announced that their survey showed that 83% of the Australian mining industry is foreign owned and that in the next 5 years $50 million in earning derived from Australian mining investment will go offshore. Is the rest of Australia suffering under the world's highest rates to make overseas investors even wealthier?
 

118.

Reserve Bank, on Wednesday 28 March 2012, lectured the banks to not chase profits at expense of safe lending. Yet again another example that the RAB is out of step with reality. Apart from the banks being liberal with their lending, we are in fact in the middle of a four year credit squeeze - Australia's longest. The banks are deliberately squeezing the supply of cash out, only to goldbrick customers, at the expense of the wider economy, Far from taking risky loans. The Reserve Bank is obviously ignorant of the fact that the banks delinquency rates have been falling in the back of their monopolistic power.
 

119.

The figures show that there is actually a lending crisis in Australia, the Australian economy is being starved of money and the RBA is completely unaware of it. The evidence towards that of course is that loans to businesses in Australia over the last three years have fallen 6%. Over the last three years with inflation they should have risen 10%. So it is really a 16% shortage of funds flowing in to business. So certainly the banks are taking advantage of the monopoly and certainly the banks are being overly cautious with their lending and hence no need for the RBA to call for even more caution.
 

120.

Gross domestic product advanced 0.4 percent in the fourth quarter from the previous three months, when it rose a revised 0.8 percent that was weaker than previously reported, a Bureau of Statistics report showed today in Sydney. The result compared with the median of 25 estimates in a Bloomberg News survey for a 0.8 percent gain. (Bloomberg, March 7, 2012)
 

121.

The report covers a period when Europe’s sovereign-debt crisis weighed on Asian demand for commodities that prompted Reserve Bank Governor Glenn Stevens to make back-to-back interest-rate cuts for the first time since 2009. Investors increased bets he will lower borrowing costs next month as a A$456 billion ($481 billion) pipeline of resource projects driven by companies such as BHP Billiton Ltd. fails to cushion a slump in manufacturing and tourism hit by a strong currency. (Bloomberg, March 7, 2012)
 

122.

“Tax collections were running a further A$2 billion ($2.1 billion) behind estimates at the end of February, indicating the full-year shortfall is likely to be much larger,” Swan said in an e-mailed statement yesterday. “Lower revenue means we will have to work much harder to find extra savings in the budget.” (Source: Bloomberg, April 16, 2012) (KY Comment: Short because RBA credit squeezing.  Less spending less tax income)

123.

“The ongoing global instability has had a big impact on our economy and our budget bottom line,” Swan said. “Since the global financial crisis struck, we’ve been forced to write down government tax revenues by A$140 billion. There will be more writedowns in next month’s budget.” (Source: Bloomberg, April 16, 2012) (KY Comment: Resources sector spending is internal . Cash does not flow to the wider economy)

124.

"It is very hard to get the balance right, but consistently now for many years the Reserve has had far too much focus on inflation only and not enough on employment and economic prosperity generally, which is their requirement under the act. It seems to be still unduly influencing the Reserve in its policies." The RBA charter charges it with acting to underpin the stability of the currency of Australia, the maintenance of full employment, and the economic prosperity and welfare of the people of Australia, Wayne Swan said. (Source: The Australian Newspaper – 19 April 2012)
 

125.

Australian Workers Union boss Paul Howes and the Australian Chamber of Commerce and Industry last week said the RBA had been too slow to cut rates in response to a slowing economy.  Mr Howes called for the government to review the RBA’s charter so that it targeted not only the level of inflation but also the level of the Australian dollar, which has not traded below parity to the US dollar since December.  ACCO chief executive Peter Anderson called on the board to cut rates by 50 basis points because of sluggish business activity.  (Source: The Australian Newspaper – 19 April 2012)