EYE-BALL Guru on – RBA Decision to cut Interest Rates by 0.25% – Gutless …

November 1, 2011
The-EYE-BALL-Opinion-Header-2
Title:
RBA Decision to cut Interest Rates by 0.25% – Gutless ..
The RBA decision to cut official interest rates by 0.25% today is the most gutless Central Bank decision in many a year.  The A$ had factored the cut and it was predictable – what was needed was un-predictability and something that would alarm current traders and get them out of and sellers of A$.

This decision has no positives – US, UK, Japan, and the Swiss,  have interest rates under 1% – Australia’s are now 4.5% …

Our housing market delinquencies are climbing – house affordability has never been worse – dropping interest rates with a cessation of the home buyers grant and the cancellation of the negative gearing tax relief on more than one investment property would allow the market to self correct.

Australia’s housing market is in the toilet and all based on artificially high interest rates – and investment negative gearing for housing.

Unwinding this nightmare to allow home affordability to return and prices fall – will be a vote losing exercise and nobody wants to go there.   Both sides of politics want to fu_k this and the next generation of home buyers by freezing them out of the market …

A 2-3% cut in interest rates brings us into line with the rest of the world – people will then have to look to invest in business to generate income as opposed to living off investment income – make the capital work that is what Governments should be about – create tax incentives in business incentives and not Housing ownership.

Our Business model is wrong and not working and it is up to the Government to create the small-business incentives to drive self-employment and opportunities.

The RBA decision could have been made by high school students with the depth and breath of numbers telling … no – screaming that interest rates had to be cut …

The 0.25% tells us all that the RBA Board are safe merchants – that as Bankers they want the ‘sure-thing’ and not be exposed to any negative media – I hope the main stream media serve it up to them and call them for what they are.

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The EYE-BALL Guru …

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  1. Evolving Spiritist
    November 2, 2011 at 5:14 am

    I understand what your saying and yes the .25% becomes meaningless (accept to the little people whos’ cash flow is positively effected) , the other aspects you refer to are much more complicated than your over simplification.
    Do not even mention the main stream press as trying to understand. Simply they dont.
    Monetary policy has always been a blunt instrument and is no panacea in itself.,the surprise your referring to, to create a shock has to be carefully chosen and frankly the time is not right.
    Unfortunately the Reserve bank continues to react retrospectively ie this move.

    If they can learn to look forward proactively they may achieve something, to do this you need a government also working proactively and in concert on a policy basis. Again the quality of politicians makes this almost impossible regardless of their political colour.

    The mainstream press are so obsessed with the personal diatribes of politicians that no decent intelligent person would want to be a target.

    Our boards and business are being driven with similar philosophies and ultimately the mediocrity that we are becoming entrenched with will create the next evolutionary move for our specific and western culture in particular.

    We are heading back along the mediocrity track from the halycon days and we will not advance again until we learn how to respect the process of developing the country at the expense of the political alternative.

  2. November 2, 2011 at 6:37 am

    Apprreciate your inciteful comments ‘Evolving Spiritist’ –

    Prey tell –

    How should it be explained when ‘dunces’ give us this type of leadership –

    Who understands or even takes the time to express the opinion –

    The mediocracy is opressive and motivating a ‘herd of cows’ seen to be grazing and getting fat – to risk much and embark on a journey that will see most lose the ‘fat’ they have grown used to is the problem.

    The Political ‘snouts’ are firming munching in a cess pool of overpaid and over supplied well of prosperity – they have it ‘too good’ and trimming back their indulgence’s wll be no easy feat – nigh impossible whilst both sides feed from the same trough and only pretend to not like one another in the House …

    They pat themselves on the back too eagerly – what have they done to deserve their ‘high-born’ lifestyle?

    Even our Media – Proprietors and Journalist’s alike – bask in the leftovers of Political gatherings like little pigglets following in the larger pig’s swill left behind …

    How do you shake the tree to awaken the mass’s – how do you motivate an indulgent population who only want to be selfish for themselves and their own –

    How do you tell them they are selling their future generations into a bonded poverty that was of their own making …

    I grow hoarse with my message … go forth and become a messenger … evolve and prove your spiritist worth –

    GURU …

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