Over at MB today we have the usual – Leitho finding himself naively confused about simple things again:
What’s the point of conducting RCs if the government that ordered the inquiry acts directly against its recommendations?
https://www.macrobusiness.com.au/2021/03/the-responsible-mortgage-lending-fix-is-in/
This clearly displays a lack of understanding of what the EZFKA is or how the EZFKA works. In the same vein, Leitho goes on to write stuff about his much desired macroprudential:
So, if responsible lending is scrapped then it will immediately hasten macroprudential tightening with the two hands of government working at complete cross-purposes.
https://www.macrobusiness.com.au/2021/03/the-responsible-mortgage-lending-fix-is-in/
That misunderstanding of EZFKA is really quite unfortunate, but today I don’t feel like penning a detailed explanation. It seems that any rationally based approach is likely to fail, anyhow.
There might be another way however. Perhaps where reason fails, faith might triumph? So here’s a prayer:
Dear Santa, please please please bring Leitho what he has been asking for foryears and scrap responsible lending so he can witness first hand what the “immediate hastening of macroprudential tightening” looks and smells like.
Love Peachy
LOL, the first quote wrt RC is my thought ‘zactly.
Blind Freddy et cie.
Peachy – I take it from years of MPLOL that you don’t see the RBA dropping the hammer on MP?
Supposedly the RBA and the Govt. according to the below are on a collision course however I think this is all about the optics from the RBA about being seen to be doing the right thing.
The RBA said they would never cut below 0.25% in I think it was March last year also, and look at where we are now…
https://www.abc.net.au/news/2021-03-15/why-the-rba-and-the-government-dont-see-eye-to-eye/13247498
MPLOL is a complex and multifaceted concept…
one of the aspects is that it looks like MP (for naive people to fawn over) and it works like LOL (for Peachy to crow about).
So MPLOL is very much in harmony with being seen to be doing the right – without anything being done. It is all about the seeming, as is the EZFKA way.
I expect that the only thing that RBA will be dropping is their pants, like they have been for years.
Next up, negative interest rates? After the RBA has said about a dozen times it won’t happen. Let’s see eh…
Debt is social enslavement – the LNP are the main proxies of those who wish to enslave us (as opposed to the controlled opposition which is the purpose LAB serve).
It is not good enough that we are enslaved, but that we WANT to be enslaved. We express this desire by repeatedly voting for those who pass this legislation and feasting on the immediate satisfaction of wants that debt facilitates.
Never mind that the game is rigged, or that the political parties are controlled, it doesn’t matter to those who rule over us. We signal our willingness for continued enslavement by playing along.
We were not all willing participants. That brings us to the recent financial repression policies to effectively steal from workers savings via negative real interest rates.
This is just a more obvious form of stealing via inflation which has been par for the course for a long time…
Yes – inflation seems like the devil to me. Yet in the EZFKA, just like most places around the world, it is now ordinary discourse to wish for inflation to rise.
of course this is the discourse pushed upon the EZFKA units by those who would benefit from inflation or would be hurt by deflation (or whose masters would, anyway)
but part of the EZFKA lore is that all EZFKA units are temporarily embarrassed millionaires and so all in this together.
There is a wish for wage inflation. Oddly enough I believe there will be a brief period where that may work in favour of existing savings. Maybe a topic for another article in the near future.
The short of it is, let’s say wages rise 5% and RBA sticks to their guns and “let’s inflation run” for a couple years. Instinctively you would think that savers have been robbed of a little over 10% in purchasing power and you would be correct up until the point RBA forced to raise interest rates.
Smells like forever to me…
Maybe. There was a proviso of wage inflation which I have previously stated I can’t see it any time soon with all the existing wage suppression policies.
If wages run at 5% for a couple of years, that will very quickly be capitalised into land prices (current buyers can suddenly pay (borrow) more, future buyers can pay even more) and debt levels.
That pump in asset prices and debt levels means it would be even less likely that rates can be raised.
That’s the sort of situation you face in EZFKA, where everything is capitalised into land prices.
Totally agree. I would contend that Government ‘Citizenship’, the international apparatus behind it and our ignorance of the understanding of what it actually means is the true source of our enslavement. All by unwitting consent on our parts.
Would you say it’s unwitting consent… or the outcome of deceit/obfuscation, where someone doesn’t know what they are signing up for?
what the hell is a macro prunedental
I think it’s when the MB blokes grind down (prune) their teeth (dental) in a big (macro) way while they watch in anger as all their predictions fail.
The predictions being based, as they are, on a misunderstanding of EZFKA realities, such as power, history, interests.
yeah even though i have no idea what marco provesmental is what you just said reminds me of the age old delusion thats been on MB for years, the idea that australians want lower house prices/ of course the average australian wants just and fair economic outcomes for everybody and totally isnt motivated by naked self interest and blah blah blah
making predictions and investment decisions based on the just world fallacy seems like bad news bears,
Lethal Leigh seems like a nice guy, sensible with his blogs, very matter of fact.
He must cringe when he sees what Delirious Dave writes some days. Delirious Dave made a choice years ago I’m going to write fringe, crackpot articles for attention on the internet, each prediction more outlandish than the last.
Lethal Leigh is a young man when MB goes belly up he’s going to have to find a job. I’d dare say that DLS is unemployable in the finance industry.
Leith actually worked as an economist and at the RBA if I’m not mistaken. Whereas Dave is just a “writer”….that used to “trade gold” (meaning what exactly? Buying and selling a few PMGOLD shares? Selling his grandma’s jewellery down at the pawnbroker?)
*correction – the Australian Treasury, not the rba