RBA outed for outsourcing its role to foreign central banks

They're paid a lot for not doing their job aren't they?

 

I would like to know more about the RBA and our money supply.

I never hear anything about it and I don't exactly have my head in the sand.

Anyone got some news links for it?

(Ideally something that deciphers the technical stuff for me)...

 

She's saying she wants them to print money?

 

its a sham, flawed ecomnomic principals run by economic neandothals

 

What she is saying is that if the RBA did what they were supposed to do, the foreign banks borrowing low at the FED, ECB and BOJ (with printed money) just to loan high to Aussie lenders, would not be able to rip off the Australian house owners the way they are.

Printing money? That's just what they all do.

 

If foreign banks couldn't make a decent buck borrowing money cheaply and lending it to Australia at a profit, why would they invest here in the first place?

 

A decent buck? Foreign banks investing here?

Loaning money they get for nothing to Australian Banks at highly inflated rates is hadly decent nor classifies as investing. They (the foreign banks) are just playing the arbitrage opportunity enabled by the RBA not fulfilling its mandate (according to that article).

Personally, besides the inequity and social injustice of them bleeding the wealth of the country in this way, it makes no difference to me as they will each have lots of time to talk it over in that very special hell reserved for bankers, money printers, ponzi pushers and fraudsters all!

 

Im told the raging fire in that hell is fuelled by paper money :

 

Its not the mandate of the RBA to provide the banks funding.

 

Indeed... the RBA is the lender of last resort.

Our banks brought this upon themselves through sheer greed. Any FX risks involved are entirely their fault (if they didn't hedge through FX options/futures/swaps etc).

The lure of the strong AUD and the low rates tempted many to borrow from overseas, can't really blame the RBA.

 

quite right and only if they have quality assets to put up.

 

APRA or what ever they are called are the ones that need to be held to account for this. Allowing our banks to borrow such significant amount of their balance sheets, creates a huge counter party risk to the banks and therefore Australia as a whole.

What we need is a significant restriction on foreign debt and an increase in reserve requirements. Instead of paying the CEO's and shareholders all these profits they should be made to pay off foreign debt.

 

or you could just let em go broke if they mess up.

 

Isn't that just a free market at work?

You buy something and then sell it for a profit.

 

OK, it's beer o'clock on a Friday afternoon at the end of a very long week, but, a global cartel printing money from nothing then loaning it out to foreign banks at (effectively) zero interest, who then loan to Aussie Banks at outrageous mark-ups still doesn't look anything like a "free" market to me. It looks a lot like a cartel conspiring to transfer the wealth of the middle-class of a country offshore through selling debt made from nothing at a very large mark-up.

Which was the point of the article I think. That there is no reason Australian Banks need to borrow from these foreign Banks. We've got our own branch of the central banking cartel right here after all so if anyone is going to print money for nothing to loan at exagerated mark ups, they should.