*reaches for tin foil hat in anticipation*
Inflation exploding...house prices sinking...What will the RBA do?
- Thread starter DanielG
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*reaches for tin foil hat in anticipation*
You are always succinct and witty. But perpetually elusive about what and where you invest with your own money. If you fess up and be more open, maybe you'd have more credibility each time you seek to warn us about speculation and spruikerism.
I see the hard copy of the New Yorker hasn't arrived at your home this month
You are always succinct and witty. But perpetually elusive about what and where you invest with your own money. If you fess up and be more open, maybe you'd have more credibility each time you seek to warn us about speculation and spruikerism.
I see the hard copy of the New Yorker hasn't arrived at your home this month
I'm not sure I'm the one with a credibility problem.
Just sayin'
I spend rather a lot of time reading about this stuff, and believe that I am absolutely on point in calling it class warfare. The upper class (or as I prefer to call them, the parasite class) don't produce anything. They don't do any of the work. They pay the least taxes of all. The lower class (welfare class) also produce very little, and pay little tax (well, they pay little income tax, but a heap of sales taxes etc). The middle class does most of the work and pays most of the taxes.
The upper class, that pull the strings of power in regards to changing policy (including monetary policy) made a deliberate attempt to dispossess the middle class. They let out too much money, too quickly, pumped up the housing bubble so that everybody overleveraged on houses with nominal value, and then when it suited them, tightened up monetary policy and what happens? Working people much poorer than them found themselves out of position and are now paying massive amounts of their income towards fantasy debt.
When one class of people creates conditions like that deliberately, then it most certainly fits the definition of class warfare - one class trying to take advantage of the other.
A free market? What free market. Can I, OA, go and start a bank and hit the government up to guarantee my loans? Can I, OA, hit the government up and print the currency of the nation, and lend that currency back to the government at interest? Of course not. This was never a free market. This is, and was, always a market controlled, via unfair market power, by very rich people and very rich families.
Why not. Why couldn't the government advocate the creation of a bank that was strictly for residential lending, at a rate of 2%. Presently, banks have balance sheets that mix in all types of loans, some riskier than others - mortgages, investment, credit card, student loans etc, and so if one of the more volatile elements of that balance sheet goes bad, it drags the rest of the balance sheet with it.
A real world example of this is something called the Glass-Steagal Act that was in place in the US. This act (in short) made certain banks low risk banks (housings, conservative personal loans etc) and other banks higher risk banks (speculative investments, investment finance etc). When the Glass Steagal Act was abolished, banks merged and started making some crazy loans based on residential borrowers/savers money, and when those deals went bad, the banks found themselves insolvent, whilst owing mum n dad savers their life savings. That's where most of this mess started.
So, why - and I ask this seriously and would like your answer directly - is it not possible for the government to provide residental loans at a very low rate of interest with their guarantee. After all, the government guarantees the banks presently no matter how insame the loan is - so why shouldn't the government, which is the representative of the people, and backed by the people (which is what a government guarantee means - it backs the loans on future tax hikes) provide money to the people directly, and chop out the speculative, profit making middleman? Why? It worked in WW2 to make bombs and guns, so why shouldn't it work today to make apartments and houses?
Really. Competition, you say. Go to any of the big 4 and see what kind of competition you have. Virtually all of their products are the same. Are you really telling me that 4 companies that are virtual clones of one another that offer deals that vary by maybe half a percent interest are in true competition? Is it really competition when the big 4 make billions of dollars a year, every single year?
And not only that - if the system is working so wonderfully...then why are the big 4 insolvent and require a government guarantee in the first place?
If you write nothing in your reply except to answer one thing, please answer me this - who owns the RBA? You'll be a little upset when you find out.
Yes they did. The bankers lobbied for the abolition of Glass Steagal. The bankers lobbied for the legalisation and acceptance of derivative trades. The bankers knew exactly what was going to happen - they knew that it would be a period of inflation and then collapse. The plan was to make sure that during the inflation phase, that they got as wildly rich as possible, and then during the deflation phase (happening in some parts of the world) buy up as much as possible from the overleveraged.
Non recourse loans existed in the UK, and they saw a crash of 28%.
Also, not to be trite, but if you weren't aware of many of the concepts in my posts, don't you yourself qualify as someone with your defenses down? (not said at all meanly.)
Both. We don't have true capitalism, and most of us are not at all vigilant.
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For other uses, see Stockholm syndrome (disambiguation).
I'd say I just dealt with it
Ah
Different Stockholm ... I'd just been reading in depth about the other one the day before - which became known as the Stockholm Paradox.Jumping to ***-u-me-tions.
It amazes me to think people are stupid enough to believe the RBA is a Private bank. Wrong!
Wrong again! Geez some people....don't know the difference between the Fed and the RBA. Thanks for the laugh
OA, I don't know who you are but you seem like a guy I want to talk to. Excellent Posts. It seems you and I read and watch the same things, as I too read a lot about the Fed, money and finance and how the system works (or rather, manipulated to benefit Government and the rich).
Don't bother with the fools here that don't want to learn anything, as Belbo's postings is typical of the responses I get when I tell people the central banks are privately own, they don't believe it.
Don't bother with the fools here that don't want to learn anything, as Belbo's postings is typical of the responses I get when I tell people the central banks are privately own, they don't believe it.
What's the difference? The Fed is in America and one of its arms is the RBA in Australia...
It is, of course. But money doesn't discriminate. I buy a house on 2% interest, and a bank will lend against it for business at 8% interest. There's a surrogate government business subsidy right there.
You keep saying it, but I'm not hearing y'all. Somebody please show me that the RBA is privately owned. If it is, it's the best kept secret in Christendom!
FYI - From the RBA website -
1. What is the Reserve Bank of Australia and who owns it?
The Reserve Bank of Australia is Australia's central bank. Its role is set out in the Reserve Bank Act 1959. The Bank conducts the nation's monetary policy and issues its currency. It seeks to foster financial system stability and promotes the safety and efficiency of the payments system. It also offers banking services to government. The Bank is wholly owned by the Australian Government, but is not a government department. For more information see about the RBA.
1. What is the Reserve Bank of Australia and who owns it?
The Reserve Bank of Australia is Australia's central bank. Its role is set out in the Reserve Bank Act 1959. The Bank conducts the nation's monetary policy and issues its currency. It seeks to foster financial system stability and promotes the safety and efficiency of the payments system. It also offers banking services to government. The Bank is wholly owned by the Australian Government, but is not a government department. For more information see about the RBA.
Brash words.
What you read may not be without an agenda, while what you read and what you understand may be two very different things.
Be careful not to make a fool of yourself.
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okay - bye bye - go have your little love in and leave us alone. have heard enough of your baseless ramblings to last a lifetime.
be careful that you're readings isn't slanted by your preconcieved misconceptions. that would be a sure sign of a closed mind.
p.s. when will people realise that we are australia - last time i checked that wasn't a state of the usa.
Stop using the word "subsidy". This isn't a subsidy. This is a crime. Start using the word "scam". It's an old scam. A very old scam. So old that you think that you think that thats the way that it is! No it isn't.
We as a society require a monetary system. We as a society require a medium of exchange. I can build that from the ground up. It's not hard. Anyone can. But the thing is that the monetary system has been usurped, and has been usurped, a long, long time ago. And in our education system, they tell us that the RBA is a government entity.
Now look. I wagged half my eco lectures. But I was the gun of the class, made my teacher have a breakdown. And they didn't tell me that the RBA was owned by a bunch of dudes somewhere in the world. I always thought that the government owned it. Who wouldn't? Obvious, right? Yeah no. Some bas*ards, somewhere, own it, and it isn't us.
Why is it that I can put my REAL money in a bank account and get 4%, and the bank itself can overlend with fictitious money at 8%? Why? It's bull*hit. How do you think I get my finance? from real people wanting to get a real 11% for their money. Instead of 4%. How the hell does that work? Who are these people making a 100% profit from real money while they're lending out fictitious money and making money on that too? What kind of crap is this?
I go to work. I get dirty. I turn a pile of rubble into a house. Why don't *I* get paid that kind of coin? Why do the guys making piles of paper out of deals that *I* pulled off get to drive lambos. Why. Don't I deserve it? I made something ffs - they didn't! I did something that benefitted someone, somewhere, somehow. Why do the financiers of the world, the gatekeepers of fictitious money, get to lord it over people while sweat stings my eyes? Why. You tell me. And then I'll tell you back. Because I'm not in on the scam, that's why.
Flipping it on you. Show me that it isn't. I know the answer, I just want you to scramble - and along the way, you'll get mad, and join the ranks.
Leave these people alone, they didn't hurt you, and there's no need to hurt them with your words, however right or not they, or you, may be, or not.
The world is a big place. There are many things going on. Most people aren't as aware as I think you may be, but offending people isn't how to go about it. Let people read, let people learn - they'll get to it in their own time, or not. No big deal. Just a bunch of humans getting along, making as best of things as we can.
Also you might do well to recall cognitive dissonance.
Didn't mean to overpower this thread btw. I rather like the somersoft crew, and look forward to the next rap
Really. Who owns it then. Don't throw the usual "the commonwealth does!" at me. Who. Names. If not names, state the Commonwealth (British) entity that does.
I look forward to your response.
Oh how wrong you are my friend... Im pretty stupid but not that stupid to believe the RBA is not a Private Bank.
Interesting. The government owns it, but it isn't a government department.
Hm.
So, who runs it? Where does their salary come from? Where do their bonuses come from? Who is their boss, precisely? Where are the government reports on their actions, apart from the deliberation of a "meeting" and subsequent alteration of interest rates that control us all?
Please. Try.
It's a perfectly ligitimate business transaction - making money for the Company.
I - in theory could do the same - ask people to deposit money into my Company called the Bank of ME and I'll pay them a %.
Then, lend out some of those deposits to someone needing funds for a venture at a % much higher than that.
If the two separate parties don't like those rules; they won't play ball with me and I have no business.
Oh, and I get to charge both of them all types of other fees as I go for account management.
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