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1/ Two years ago we released a documentary about structural problems in the Australian economy. At the time, the RBA was talking about raising interest rates. We predicted they'd go to 0 & we'd start printing money.
Today that became reality. $100B in QE. https://www.afr.com/policy/economy/rba-cuts-interest-rates-to-0-10-starts-100b-qe-20201103-p56b11
Today that became reality. $100B in QE. https://www.afr.com/policy/economy/rba-cuts-interest-rates-to-0-10-starts-100b-qe-20201103-p56b11
2/ If history is anything to go by, asset prices will rise, our property bubble will grow & inequality will worsen.
In every instance globally, printing money has made the rich richer. They own the assets!
The money created did not stimulate, or even make it into real economy.
In every instance globally, printing money has made the rich richer. They own the assets!
The money created did not stimulate, or even make it into real economy.
3/ Phillip Lowe has even discussed this himself on many occasions as early as 2017:
Philip Lowe says inequality getting worse due to low interest rate monetary policy:
https://www.abc.net.au/news/2017-07-26/rba-says-inequality-getting-worse/8746594
RBA says low interest rates increase housing inequality. https://www.smh.com.au/business/the-economy/low-interest-rates-increase-housing-wealth-inequality-rba-research-finds-20200217-p541li.html
Philip Lowe says inequality getting worse due to low interest rate monetary policy:
https://www.abc.net.au/news/2017-07-26/rba-says-inequality-getting-worse/8746594
RBA says low interest rates increase housing inequality. https://www.smh.com.au/business/the-economy/low-interest-rates-increase-housing-wealth-inequality-rba-research-finds-20200217-p541li.html
4/ Like all central banks, their models are broken. Economists do not understand banks, debt & money.
The tools they were taught at school didn't work.
And now they're exhausted.
But we're doing it anyway.
Australia - A Coming Financial Crisis:
The tools they were taught at school didn't work.
And now they're exhausted.
But we're doing it anyway.
Australia - A Coming Financial Crisis:
