RBA expose' on interest rate rises that are harming families
RBA expose' on interest rate rises that are harming families
Writing articles for a decentralised news site isn't probably going to create much surprise from many when we drill down on the central banking system. After all, many of us have joined the decentralised world because the current monetary system isn't doing us much good. While Crypto is still in it's infancy years many hold on hope that it will provide an alternative to the current world order.
If you needed more proof on why there needs to be a competitor to the current world standard than we need to look no further than the current global situation unfolding relating to interest rate increases which are in my opinion, pointless and shouldn't be legal.
Are we seeing malicious interest rate rises?
You might be cheering in support or if you're a normie passing me off as a conspiracy theorist as such and while I am not a fully qualified "economist" I am aware of much of the economic checks and balances. One of those in place is for when CPI begins inflating and the reserve bank senses a recession they pull the trigger on increasing interest rates to stem the supply and demand.
It's a balancing act with too much on the bottom end we hit inflation and recession, too much on the top end the same occurs. The problem very early on from these interest rate hikes is that it was hitting the wrong people.
Income inequality still high so what gives?
So apparently we all have too much money and because of a war going on this is causing inflation so we need to give more of our cash to the reserve bank to slow down supply and demand. Sounds good in theory but as I long suspected this is not the case.
A recent analysis and article confirmed what I have long suspected that the cause of inflation is being driven by profits and not over paid workers or a war on the other side of the planet.
Even in internal emails from the Australian reserve bank accessed through Freedom of Information expose how consumers are being hit at the checkout because there is a global narrative of "inflation" so this has provided the opportunity for businesses to increase prices far beyond their costs and include additional costs on items that aren't impacted by inflation.
Whilst the above data of struggling households show Australian stats and data we can expect similar data to be seen in UK, US and other former and current commonwealth nations as our economic systems are built off common ground.
We also share similar economic markets and social issues which increases the likelihood of the data being reflective.
What's more concerning in the article above is that businesses are aware of their powerful position and it looks as if they will continue to drive prices far beyond the costs of inflation until they find a price point where people push back, that being stop buying goods.
The article also states the consumer confidence is beginning to fall so that could be a signal that the reserve bank will freeze future rate rises. But there is also an issue ahead with workers wanting to renegotiate wages to match price increases which will harm smaller businesses pushing them out of the market and also further driving inflation and more so confirm rate increases.
Whose regulating the banks?
So while the regulators focus on decentralised banking there is a major problem growing amongst the regulated and we are now clearly living in a new world of which the people no longer matter and the need for increased profits and pulling the wool over peoples eyes is in full swing.
The question everyone is asking now is how will government react to this new information that the mortgage stress on families is unnecessary and in the most case unwarranted.
With an upcoming federal election looming in Australia and more home construction companies falling over due to increases in costs. We hope that many strike back before it is too late.
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Posted Using LeoFinance Beta
