The RBA cut the rate on their funny money when the real focus should be that we are wise to it that their system is a con
This implies panic in the economic system. The bubble is unwinding now and the massive job layoffs and businesses going bust or selling up were always going to happen. Even if the banks pass on the 0.5% rate cut in full, it won't make a damn bit of difference. Australians just think we're different.
Savers were never a priority in the Australian political / economic spectrum fishball, you know that. Even 6% is a complete slap in the face for anyone who knows the real state of play concerning inflation and taxation in this country. But then again, savers and people who outrageously 'live within their means' are the enemy of the state with the minority voice, politically speaking. Democracy at it's finest, so raise a glass old chum and enjoy the good times! :lol:
Totally agree - and also the nonsense journalism and the continued linking of RBA "rates" to what the banks might charge you and I is as criminal as the obfuscation of how specifically the RBA cash rate actually influences mortgage rates (for example), since the global money supply seems to be what the major banks will refer to when it comes to "the cost of borrowing and/or capital". Why the public are presented with the OCR as some major metric in their lives is beyond me. And then we have the whole fiasco of CPI/Inflation rates which do NOT take into account "volatile goods" - eg. Petrol; food. It's just a licence to print money ... oh wait ... About the only good thing it will do is depress the dollar which will at least boost my existing PM stack's fiat value (although make it more expensive to buy more ... hehe) and improve the lot of exporters (and since I'm an exporter paid in US$ that would help too!).
They can rates only so many times then what? Even at ZIRP there is a limit to how much can be borrowed
