The Halo Effect

Imagine if you will, a large Australian organisation with the following characteristics.

  • The Chairman and Deputy Chairman are both executives of the organisation, contrary to all the claims about best practice governance necessitating the separation of roles of Chairman and CEO.
  • One other member of the board (of 9 members) of this organisation is appointed by the principal owner of the the organisation.
  • The principal organising purpose of this organisation is to use all tools and means available to it to manipulate markets; and in manipulating markets, this organisation has historically generated large profits and paid large dividends to its owner.
  • A key consequence of the market manipulation of this organisation is that Australian savers have lost millions.
  • Although one of the purposes of this organisation is to participate in and manipulate markets, this organisation does not have a financial services licence and it has never been investigated by ASIC or any other regulator.
  • A wholly owned subsidiary of this organisation, a subsidiary set up for the purpose of international sales, has been caught engaging in foreign corrupt practices yet no member of the board of this organisation has ever been held to account.
  • Employees of this organisation are recruited very early in their career and indoctrinated in the ways of the organisation, with very few if none, having career experience outside this organisation or within that of its owner. A cult culture of sorts.
  • The media, when discussing this organisation seldom questions its means or methods and almost always ascribes to it uncritical and virtuous intentions.

What would you say about such an organisation? Perhaps worthy of a royal commission?

Well the organisation described above is the Reserve Bank of Australia.

Think about that.

Follow I Am Spartacus on Twitter at @Ey_am_Spartacus
Subscribe to the Sparta-Blog at eyamspartacus.wordpress.com

This entry was posted in Uncategorized. Bookmark the permalink.

19 Responses to The Halo Effect

  1. stackja

    What would you say about such an organisation? Perhaps worthy of a royal commission?

    And parliaments?

  2. instituted theft

    My first guess was the Australian government. And lo and behold is is the RBA!

    This is an institution enshrined to entrench theft as a way of life into the psyche of Australians.

    Theft? Indeed, because it has a legislated monopoly on the value of money over time. It steals the value of your time and of course in the name of the common good.

  3. This could almost apply to the union movement.

  4. Clint

    Who owns the Reserve Bank?

  5. JC

    Who owns the Reserve Bank?

    The Australian government.

  6. H B Bear

    A girl I did my B Ec with joined the Reserve Bank on their graduate program in the late 80s. She is sill there nearly 30 years later. Perhaps I should look her up, stage an intervention and get her deprogrammed?

  7. Jo Smyth

    Well it has the full support of the major Parties, whatever their reasons are I wonder, so no chance of a Royal Commission.

  8. max

    “Since formation of the Bank of England in 1694, central banks have purchased government debt.
    This was part of the original quid pro quo.
    The government gave the central bankers monopoly status in issuing or controlling the nation’s currency. In exchange, the central bank guaranteed that it would be a lender to the government.
    Government debt created a stream of income for the central bank, which was nice, since the bank created the money out of nothing. The government got a buyer for its debt without having to raise interest rates in order to attract private, non-bank purchasers.”
    Gary North

  9. Did you see that in Switzerland a referendum a few days ago stopped their reserve bank from printing money or limiting the operation of Swiss banks which have operated freely for hundreds of years.

  10. Clint

    The Australian government.

    So why bother with a parliamentary inquiry? If the government owns the Reserve Bank then they can do what they want with it.

  11. Clint

    The government gave the central bankers monopoly status in issuing or controlling the nation’s currency. In exchange, the central bank guaranteed that it would be a lender to the government.
    Government debt created a stream of income for the central bank, which was nice, since the bank created the money out of nothing. The government got a buyer for its debt without having to raise interest rates in order to attract private, non-bank purchasers.”

    But I thought governments owned central banks? If the government owns the bank then why would it need any sort of guarantee from what is essentially itself? Or is the bank of England not owned by the government there? If not, who owns the Bank of England? And why don’t the English government just open a government owned central Bank?

  12. OneWorldGovernment

    What would you say about such an organisation?

    Full on Communists

  13. Baldrick

    Change the word ‘markets’ to ‘media’ and a few other minor tweaks and you’d be describing the ABC.

  14. Baldrick

    Full on Communists

    I rest my case.

  15. Lutz

    There is no actual reason or purpose for a central bank to exist.

  16. PB

    “But I thought governments owned central banks?”

    You know as well as I do who owns and controls the Global Central Banks Clint.

    Its those pesky Amish isn’t it everyone???

  17. flyingduk

    Im stocking up on some more private money atm, now that BTC is so low

  18. Squirrel

    And now we are being told to make our bubble economy even more internationally uncompetitive by instituting annual wage increases starting with a “3”.

    This is what happens when people who are paid more than enough to know better allow a massive, debt-funded asset price bubble to develop – the bubble might be fun for some, but the debt has to be dealt with one way or another, and the preferred option is obviously theft through negative real interest rates. What a disgrace.

  19. Clint

    You know as well as I do who owns and controls the Global Central Banks Clint.

    I don’t know and that is why I am asking?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.