I too feel that the RBA are finally on the right track in increasing interest rates.
When house prices have doubled yet this has not been reflected in the CPI, it is obvious that the figures are doctored. The purchasing power of our dollar has fallen robbing those who save, the retired and those on fixed incomes.
The resultant increase in the dollar has made inports cheaper and benefits most consumers.
Australian industry and primary producers have only themselves to blame by writing their contracts in US dollars. Had they been written in Australian currency they would now be laughing.
The fact of the matter is that on a world wide scale, Australia is not competitive. We have hidden our inflated wages and high tax regeme behind our battered dollar leaving the cost to be hidden in imports.
Once again, those who are prudent have financed the reckless spending of those who would live beyond their means.
Hopefully, Political interference will not influence the Reserve bank and they will reset the balance.
