EYE-BALL Guru on – Another reason the Australian Treasurer deserves his DUNCE-HAT – Part II!!!
Another reason the Australian Treasurer deserves his DUNCE-HAT – Part II…
|The Swiss Central Bank today acted to protect its own economy – it took the market by surprise when it announced it was fixing its currency to the EURO at CHF1.20 to the Euro. The chart contained in the copy of the story shows the markets response.The story over the wire read:
Once again the Australian Treasurer and the RBA are shown to be complete “dunces” – for many months this blog site has pounded the Australian Treasurer and the RBA over the high value of the A$ – [see links below to read previous posts.]
Previous posts on this same issue can be read using the links below:
Given this devaluation – and the swiftness the Swiss Central Bank (SCB) has acted over the last 3-4 months to curtail the appreciation of their currency – this latest action gives new meaning to determination. It also shows up the lack of action and pure idiocy of Mr Swan as the Australian Treasurer over the last 4 odd years – and the collective stupidity of the RBA’s policy to only focus on “inflation” indicators to monitor the Australian economy.
The $A Billion’s being shipped off-shore in raw materials and agriculture is returning to Australia as a fraction of what it was when the A$ traded in the A$.70-.80c range – this is where the A$vUS$ has averaged over the last 40 odd years.
The current levels have created the two-speed economy every economist and forecaster has blamed for Australia’s economic woes – and as a response the Government and the RBA have not acted or responded to the rise of the A$.
There was a time when the RBA would step into the markets to take the heat out of the currency – this often had the sting to squash over-buying or selling – this appears on the RBA record of activities to be a thing of the past – particularly when currency targeting should have been of focus.
TRhis in-action and the policy of maintaining relative high interest rates has underpinned any reason to sell the A$ – it continues to be so even now -
The SCB showed some insight to protect their economy – as a contrast the RBA under the Treasurer’s direction has shown no intent to prevent the A$ from rising. This represents gross incompetence on a scale that has cost Australian Retailers, exporters, tourism operators, manufacturers and the mining and agriculture sectors $100’s billions.
It’s time for SWAN to offer his head and acknowledge his incompetence.
The EYE-BALL GURU …