Peter,
Obviously it is your opinion which is fine.
The only thing I'd like to point out that the Reserve got it just as many times wrong as it got right, you might even remember to the recession we had to have? Was not the RBA independent and wise at that time?
Economic indicators several cases do not show real activity. For example housing approvals is far from housing completion (when real money changes hand and additional good bought, etc, etc). If people do not have the money they stop with the approved plan. It is only a forecasting indicator, not something to base monetary decisions.
While we happily spend every cent the government hand us out in baby bonus and tax cuts etc, at the and of the day all we got back is the backet creep if we got it at all. So using this as the basis for high economic activity and we should raise our rates even further from the EU and the US, I think personally, is crazy. There are lots of people in non high paying jobs who are already struggling at the current rate in Sydney and maybe in other cities.
Another .5% (which according to the Reserve is "the preferred neutral basis", what a crap!) might just break the back of the cammel. Sydney and other cities also need lowly paid people who provide essential services, otherwise the highly paid might have a nightmare. The balance has to be struck, meaning these people also should be able to purchase property in the cities and be able to pay the loans and something left over as having a family is more than paying the mortgage.
Sorry rumbling on, but I think (OPINION) that the vast majority of economist are a bit of an idiots who got it so often wrong and just playing with other people's life. Just thinking back to 1999 or 2000 when one of the biggest gambling venue (futures fund having nobel prize winner economists on board) went bust. That one showed me how far is reality from text books. We also seen it here back in the lates eighties and early nineties lots of times and the human cost was very high.
Its enough rambling, but the RBA's wisdom and economists can get me going.
Obviously it is your opinion which is fine.
The only thing I'd like to point out that the Reserve got it just as many times wrong as it got right, you might even remember to the recession we had to have? Was not the RBA independent and wise at that time?
Economic indicators several cases do not show real activity. For example housing approvals is far from housing completion (when real money changes hand and additional good bought, etc, etc). If people do not have the money they stop with the approved plan. It is only a forecasting indicator, not something to base monetary decisions.
While we happily spend every cent the government hand us out in baby bonus and tax cuts etc, at the and of the day all we got back is the backet creep if we got it at all. So using this as the basis for high economic activity and we should raise our rates even further from the EU and the US, I think personally, is crazy. There are lots of people in non high paying jobs who are already struggling at the current rate in Sydney and maybe in other cities.
Another .5% (which according to the Reserve is "the preferred neutral basis", what a crap!) might just break the back of the cammel. Sydney and other cities also need lowly paid people who provide essential services, otherwise the highly paid might have a nightmare. The balance has to be struck, meaning these people also should be able to purchase property in the cities and be able to pay the loans and something left over as having a family is more than paying the mortgage.
Sorry rumbling on, but I think (OPINION) that the vast majority of economist are a bit of an idiots who got it so often wrong and just playing with other people's life. Just thinking back to 1999 or 2000 when one of the biggest gambling venue (futures fund having nobel prize winner economists on board) went bust. That one showed me how far is reality from text books. We also seen it here back in the lates eighties and early nineties lots of times and the human cost was very high.
Its enough rambling, but the RBA's wisdom and economists can get me going.