Phil Lowe RBA Governor Just Another Bastard

That’s it. I’m calling the RBA governor just another bastard servant of the wealthy. Instead of clearly explaining the monetary operation behind the freshly created $200 odd billion government “debt” he is perpetuating the myth (lie) that it will need to be paid back (by future generations).

But he doesn’t stop there, oh no. Instead, he is just about leading the debate on how to transfer even more wealth to the rich on “the other side”. To that end he proposes two vehicles in his usual (obsequious) manner: “radical” tax reform and more “flexible” IR arrangements.

Let me take the second one first. Even by the most optimistic forecast, we’ll end up with unemployment in excess of 10%. So what is the best way to manipulate those figures? Replace full-time jobs with casual jobs. Talk about killing two flies with one swat. On the one hand, it enables employers to (further) cut costs (increase profits) and on the other hand “improve” unemployment figures while not increasing worked hours (workers’ incomes). It’s an old trick and it works very well.

The second one is to increase the regressive GST which is another wealth transfer (upwards) vehicle (especially when combined with income tax cuts). He threw in replacing property transfer taxes (stamp duty) with land (value) taxes but that’s a red herring given that both are taxes levied by the states, only to further the argument for a GST increase.

And that my friends is most of what we need to know about central bank independence.

Zoltan Bexley is a woodworker, armchair economist, sustainability and social justice advocate

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