"Macro-shackro - the ppl who wrote those books and the ppl who studied them didn't/couldn't stop this GFC BD from happening?"
Those that did study economics actually implemented policy that helped make oz the best performing economy in the developed world through our fiscal and monetary stimulus packages, the very reason why we now have to "tap the brakes" to ensure we dont accelerate too strongly.
"Remember those books are on "economic theory" - economics is not a science!"
Actually economics is a science - it is called a social science. Again you comment on that you know little about.
"And please don't tell me that a husband and wife with a child or two and a $500k mortgage is going to embrace a rate rise of "only" 25 basis points!"
Anyone who is under stress from a rate hike from such a low base has clearly overextended themselves and probably should sell up and rent. Face up to harsh reality, the RBA doesnt exist to hold the hand of stupid people. Remember these are the same people who recieved so many rate cuts and govt handouts not that long ago.
"Who are you (or me for that matter) to say what hurts and what doesn't? Is a rate increase going to help unemployment? is it going to put a lid on inflation?"
I know Im well qualified to comment, can you honestly say the same? As for the unemployment / inflation balance think of the rate hike as tapping the brakes, the rates are low enough for the economy to still grow (the car is still moving forward)just not at the same pace.
"And speaking of inflation, who the hell decided that higher interest rates are not a DIRECT and contributor to inflation? Talk about a circular function!"
Thats called automatic stabilisers in economics but the net effect given time is that it will decrease the pace of inflation.
This whole "whats in it for me" attidude that many australians are embracing is getting tiresome.
