Wednesday 19th of June 2019

Treasury

Time for the government to open up competition in the banking sector!

The recent decision by CBA to withold 0.17% of the 0.75% interest rate drop by the RBA has underpinned the requirement for the banking sector in Australia to be opened up and made more competitive.

I have read numerous statements by treasurer Wayne Swan that the government will ensure that the banking sector is made more competitive by allowing borrowers to switch banks easily to encourage competition between banks. Well guess what - it's time to deliver on that promise!!

The big interest rate lie

It may come as a surprise to many people but banks 'print' money, the government has no real control over monetary policy and as a result has almost no control over the economy at all.

What do you mean banks print money?

 When you go to a bank and get a loan on a mortgage the bank is not lending money which someone has actually deposited with them. They just record your debt and create electronic money by recording a credit in someone else’s account. You pay interest on the money they just created. Why do you pay interest on something which cost nothing to create?  - because banks decide you should and there is nothing we can do about it.

Why?

Why are rich still getting richer and the rest of us who work hard get taxed too much. Why is this so? What did we do that was so wrong?

A market economy? - take the red pill

Take the red pill 

 Contrary to popular belief we do not live in a Market Economy.
The market does not reign supreme. There is no market because no bargaining
takes place. There is no communication between market actors. Markets facilitate communication between market actors to ensure an efficient allocation of resourses. No Communication, No market. Simple as that. Communist country had stores and currency and all that but that doesn't make them a market economy.

 
The Case of Pharmaceutical
Society v Boots Cash Chemists (Southern) Ltd[1]

neatly explains how it all really works.

Should labor block the tax policy. pros and cons.

I think that Mr. Beazley should stick to his guns and vote against the tax cuts,  to show that he is different and believes in what he says.

And cares about the lower end of town is this country.

We will need  him when the industrial relations are changed and the fundamentals of this country are gone.

What do other's think? I personally think it shows great moral fibre.

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