Interest Rate Rise (2 Viewers)

[chicky_pie]

I refer you to an earlier post.

AT LEAST learn how to quote a post.

 

[Nebuchanezzar]

pwned

 

[williamc]

Aussie John says that we'll be able to spend our hard owned moolah by the end of the year.

Question: Aren't these rate rises on the verge of doing more harm than good? Like, you know, hundreds of people defaulting on their morgages is a far great price than moderate inflation amirite?

Question 2: Wouldn't raising the GST or putting some kind of special anti-inflationary tax on large spending (like buying shares or whatever) be a better instrument than interest rates? You know, target those who spend lots and can afford to be penalised rather than those who are struggling to maintain a house.

1) The central bank believes that if they get inflation right (2-3%) everything else in the economy will adjust itself. For that reason the RBA endavours to keep inflation in the target range.

2) Theoritically it had been proven that the monetary policy is the best intrument the central bank can use to slow down the economy. Raising GST would only add inflationary pressures. I can see what you are trying to say though, the only other thign that would be logical would be if the government centralised the wage determination system and lowered wages. BUT THEY BETTER NOT DO THIS OR IM LEAVING THE COUNTRY.

 

[atreus]

if any govt is going to be responsible for this, it is the howard govt.
the rudd govt has until the budget to keep blaming the past govt, then, that excuse gets a bit harder to sell. but it is true, and i dont think anyone can deny it, that these pressures have been building for some time and the howard policy of pretending that everything is ok did nothing to help.

 

[Studentleader]

Bank Of Aus: UP INTEREST RATES DUE TO OVERSPENDING!11111111
1st Home Buyers: OMFG QQ CANT PAY MY MORGAGE
Kevin Rudd: OMFG QQING!1111 NAWT IN MY GUVERMENTZ!
-Kevin Rudd has lowered interest rates-
-"Investors" chuck the shits due to bank rates dropping-
-Price of everything goes out of control-
...
-You Have Died-
Press ANY KEY to continue

 

[withoutaface]

http://belligerentandnumerous.wordpress.com/2008/03/05/housing-affordability/

 

[Zrap]

Inflation decreases.

 

[chicky_pie]

http://belligerentandnumerous.wordpress.com/2008/03/05/housing-affordability/

Email it to Kevin Rudd!!

 

[delicatetears]

Thank god somebody brought it up. As much as I don't like the mentioning of interest rate's rise, I can't do anything but lament at my friend's ignorance. I mean, what exactly can our government do? She want the government would do something about it. What? Then tell them to their faces!

"I like the Rudd government, but interest rates! They're on the rise!"
"Well why does it concern you anyway?"
"He should fix the Victorian public transport too!"
=='

Sorry guys, I had to get this off my chest...

 

[chicky_pie]

Interest rate rises Swan's fault: Abbott

OPPOSITION frontbencher Tony Abbott today accused Treasurer Wayne Swan of fuelling the inflation increases which had forced the Reserve Bank of Australia (RBA) to lift interest rates.
"Wayne Swan is the person who's been talking up inflation non-stop since last November in an attempt to blackguard the former government," Mr Abbott told Network Ten.

"I think the reserve bank was, in large measure, responding to him," he said.

"In a sense, Wayne Swan has caused the most recent interest rate rises."

Asked how the opposition would keep inflation down, Mr Abbott pointed to the record of the former coalition government.

"The best thing you can do for families is to keep interest rates as low as possible, to keep employment as high as possible and to try to get wages as high as possible," he said.

"That's precisely what happened under the Howard government. Look at our record, judge us by our record.

"By the time of the next election, (Prime Minister) Kevin Rudd will have a record to compare with ours and I suspect it won't stack up."


http://www.news.com.au/heraldsun/story/0,21985,23605529-662,00.html

 

[ohdyamo]

Wait, why are interest rates still going up? Howard's been out of power for months now, weren't all the interest rate rises his fault? Whose everyone going to blame now? Same with petrol prices, apparently that was Howard's fault as well, but they still seem to be going up.

Poor Labor, unfortunately history will show that interest rates were high under Keating and low under Howard. And despite the fact Rudd probably isn't to blame just yet, rates are once again at a higher level... under Labor.

 

[incentivation]

The inability of interest rates to curb expenditure really highlights the need to reform the tax system.

Consumption tax ftw in my opinion...

 

[wuddie]

i will try and find an editorial by the editor of the daily telegraph. he was talking about interest rates and tax reforms, or the lack of need for them, and dishing it out at glen stevens (who, if you don't know, is the governor of the reserver bank). anyway, if i can find it, i will post it up here, and you can understand why the daily telegraph is catered for lower income persons, and if you really want to know the important stuff, read the smh.

ps. i have not been paid to say this.

 

[wuddie]

http://www.news.com.au/dailytelegraph/story/0,22049,23493591-5001030,00.html
i don't know what david penberthy's background is, but it sure as hell not economics.

you can also read some of the comments on the bottom of the page, see which one you agree with.

 

[incentivation]

The Reserve Bank's role is not to 'be in touch'. It has a role in the economic landscape, and policy for some time now, has been to utilise monetary policy to address inflation.

Stevens is not an elected official and is acting in his capacity as Governor in the way that most would; performing the functions conferred upon the RBA.

It is the Government that should be implementing fiscal and micro-econ policy that will address the inflation issue and unfortunately, particularly in relation to the latter (as with most economic policies), there is an unavoidable time lag.

 

[wuddie]

correcto

 

[ledzeppelin]

http://www.news.com.au/dailytelegraph/story/0,22049,23493591-5001030,00.html
i don't know what david penberthy's background is, but it sure as hell not economics.

you can also read some of the comments on the bottom of the page, see which one you agree with.

that's hilarious