RBA role

a 900 page report says that the RBA Board is unfit for purpose.

No surprise there. 

A typical Board is made up of rich and powerful people who have zero knowledge of the business. Each member will be on several boards. on as many as possible. as long as there is free booze and bikkies on offer.

the daily paper notes that one rba board member is also on the board of fortescue metals. really? he has expertise in both mining and economic policy?

there are career board members who allowed the casino to operate as a money laundering service for criminals. who allowed the mint to dilute the "gold" that they sold. they either know nothing -- or do nothing.

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the report says that rba board members should be able to understand "the design of the complex monetary tools proposed" by which they must mean, hire journalists.

for months, journalists have been explaining those tools as, rate up, rate down...

not complex at all, when you understand economic journalism.

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more importantly: who makes these economic decisions? not the rba, i hope.

government is elected to make policies.

the government decides, for example... keep inflation down and unemployment up.

they tell the rba.

them the rba juggles rates to get the required result.

where has the government been on these decisions?

nowhere to be seen.

avoiding blame and responsibility.

Nick Lethbridge    /    Consulting Dexitroboper
Agamedes Consulting    /   Problems? Solved.
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As Conan says: What does not kill you
does not kill you