The RBA has never fulfilled its charter (or mandate): a) full employment, b) price/currency stability, c) stable financial system.
I stand by my comments. Why? Because everybody who is aware of the long-term history of central banks - even central bankers themselves - agree with it.
The Australian historical perspective is well presented by Ian Macfarlane's Boyer Lectures, start with 'From Golden Age to Stagflation' (lecture 2).
Reflecting on the lectures it becomes very clear that 'central bankers' are following the 'latest scientific fads & fashions'. The problem is - applying most of these 'evolving economic theories' have not resulted in overall wealthier societies, stable financial system and sustainable world economic growth. Australia has not escaped the Great Depression, has not escaped the mining booms & housing bubbles, the banking solvency problems during GFC and may not be lucky to avoid the (inevitable) bust.
In regards to Ben Bernanke, he does not have a choice - he (the FED) is responsible for maintaining liquidity in the world's financial system. The USD is still the major reserve & trade currency (according to BIS - accounting for about 60% of the total world reserve and 73% of international trade currencies). Furthermore - the Fed is the statutory organization of the US government to provide the necessary funds for treasury (i.e. government budget). You knew all this, without me telling you.
Yes, everybody is aware of food, energy, etc inflation - i have wrote about it. But, one look at the historical commodities chart would tell the casual observer that prices have been steadily increasing from around the year 2000. Did Bernanke do that too? Oh, i heard - he is 'responsible' for the MENA revolution, the BRIC inflation, the EU sovereign problems, Japanese earthquake, high AUD...etc.
All the commodity prices have collapsed during GFC, America stopped importing, the international market & banking system froze. Now, we can argue that 'deflation' would of been better (let the system collapse, let banks, markets, companies and countries fail, but to me - people and their livelihood are more important than 'quantitative easing and 'the bottom line in the budget'.
My problem is with the 'market makers' (and other banks) - they have been provided with an extraordinary opportunity (huge amount of cheap funds) to support the ailing economies, which they have promptly squandered. For that i am angry, very angry.
