The ALP has distorted interest rates and kept them artificially high in Australia.
They have done this via flawed policy and i believe this has had a damaging effect on the economy which will get worse. I am busy finishing off a file tonight but I wanted to get the ball rolling.
The RBA sets the interest rates and moved them ahead of the rest of the world after the GFC actually hit in 2008. The GFC started before that. They (RBA) set rates based on local conditions falsely created by the ALP and a set of internal policies of their own.
Those rate moves attracted hot money via carry trade which I will go into if I get time tomorrow. That pushed our dollar higher and had both negative and positive effects. Mostly bad.
I will show how it was stimulus that created short term gain only and exacerbated the property bubble and forced the RBA's hand to raise rates. I will show why this lasted far too long due to RBA methodology.
I believe thinking Australians deserve to know why our interest rates appear low by historic standards however they are actually very high by world standards. I will examine why this has set up a horrific hard landing as China slows over the next year or more, tens of thousands of Australians directly affected and the rest of us to lose money too. The ramifications are severe.
Already construction, tourism, education, exporters, agriculture, mining, manufacturing and other business sectors have suffered and now the ALP and boffins put all of this down to an adjustment period for the economy.
Yes stimulus was needed but how did the ALP stuff that up? A topic worth discussion IMO. We can keep it simple and all points welcome if anybody is interested.
