Lowe as it gets


From Saturday’s Age, two stories opposite each other on pages 6 and 7. The top one is a continuation from the front page about the RBA and the Prime Minister taking a different view on economic policy. It begins:

Reserve Bank governor Philip Lowe has called for more infrastructure spending across Australia in direct opposition to the views of the Prime Minister Scott Morrison.

When you follow the story to its continuation on Page 6 we find that while the RBA Governor disagrees with the PM on the need for a stimulus, he does agree with The Greens.

He really should just keep his views to himself. Unbelievably out of his depth. Even in the one area he is supposed to know something about – monetary policy – he is lowering rates and threatens to continue to lower rates. No idea about the damage he is doing. You don’t expect more from the Greens, and now that I mention it, I don’t really expect more from a modern economist either. We’ve had ten years of stimulus and look where it’s got us, and now they want more!

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41 Responses to Lowe as it gets

  1. mh

    I think Lowe has suggested that further RBA rate cutting will have limited effect, so he wants more government spending.

  2. None

    One of the problems, Steve, is that these fools are often economics graduates from our dumb universities where Keynesianism dominates. This is why we need more Kates and less Keynes. Snd why your next boom should be titled “Everything you were taught at university about economics is dead wrong”.

  3. Ian of Brisbane

    We do need a stimulus in the form of a tax cut, not more pink batts.

  4. rickw

    Modern Governance:

    If the policy approach doesn’t seem to be delivering what it theoretically should, do more of it!

    Covers everything from economics to gun crime prevention.

  5. miltonf

    Never had a real job. Just another egg head.

  6. miltonf

    The reserve bank was started in the 1950s? How did we get on without it prior to that?

  7. miltonf

    Oh OK it was the Commonwealth Bank before 1960.

  8. Keith Forwheels

    He has every idea what he’s doing, he’s got a mandate from the BIS. Don’t give this man a pass on the basis of incompetance, it’s malicious and it’s intended.

  9. Judith Sloan

    Very bad judgement on Lowe’s part to give this interview. Good to know he takes instructions from his daughter. Is her name Greta?

  10. He has every idea what he’s doing,

    Totally agree, these moves are quite deliberate and I’m certain are part of a wider push to support the malicious UN agenda.

  11. miltonf

    The Australian economy has been very much a victim of the boiling frog syndrome. Manufacturing, agriculture, housing all under attack. Free trade dogma or globull warming were just pretexts to attack productive people.

  12. miltonf

    Manufacturing, agriculture, housing- and mining.

  13. miltonf

    It’s hard to thank of a better way to sabotage an economy than make electricity unaffordable and unreliable.

  14. Texas Jack

    Genuine questions here – I would love to know what Steve and Judith would replace the RBA with? Anything? If the cash rate were left free to wander, would we have better long-run outcomes? My guess is yes – private concerns would stop trying to guess the next ASX free-put seller, a-la Lowe, and start thinking about actual business conditions and prospects.

    GUessing here, but do we become more reliant on the Fed, with a risk-margin? With a floating A$ that’s a harder act to follow since the FX market will do the figuring out of the risk-margin – we’re not fixed regime a-la Singapore or Thailand.

    Love to see some commentary from you both here…

  15. Keith Forwheels

    It’s hard to thank of a better way to control people than to make electricity rationed through smart meters, mediated through to IOT & apportioned via social credit

  16. Keith Forwheels

    It’s hard to thank of a better way to control people than to make electricity rationed through smart meters, mediated through the IOT (Internet of Things) & apportioned via social credit.

  17. miltonf

    I’ve never fully understood the the finer detail of monetary policy- ok the RBA controls interest rates in Australia. Is that because they borrow money on the short term money market? Do they still have the LGS ratio and SRDs? Do they control it that way?

  18. Candy

    He talks about “mad populism” of the Whitehouse coming to Australia, not enough being done about climate change in the SMH article on his big interview. He rides a bike, worships indigenous culture and the RBA is an activist bank, females should be “feisty” according to the SMH and he is anti Brexit.

    Stock standard Green elitish type really, so what? But dropping the interest rates going into almost negative territory seems bizarre and is the issue though. Surely he is mistaken in this. He must be quite out of touch.

  19. miltonf

    What the Canberra marxists are doing to electricity, they are also doing to water.

  20. miltonf

    Trump and Brexit has smoked so many of these people out. What exactly is wrong with populism? Isn’t it the Latin version of democracy?

  21. flyingduk

    It’s hard to thank of a better way to sabotage an economy than make electricity unaffordable and unreliable.

    Yes, in wartime the enemy’s grid is a high priority target.

  22. miltonf

    The royals have pretty much come out in their true colors as well.

  23. thefrollickingmole

    We’ve had ten years of stimulus and look where it’s got us, and now they want more!

    Ill keep stimulating my nutsack with this claw hammer, it hasnt felt good yet, but Im sure it will soon if i just do it harder!

  24. miltonf

    Yeah the fiscal debacle in response the the GFC cured me of my Keynesianism. I have never agreed with the tariffs cuts that have obliterated so much value adding in Australia.

  25. egg_

    RBA is an activist bank

    Say goodbye to the Oz Economy, then.
    So much for the PM leading the country – that’s mud in your eye, SloMo!
    Happy hunting!

  26. egg_

    This is when you know the executive branch of government is completely out of control. That it’s being run by bureaucrats who don’t care at all who was elected, who are acting out their left wing agendas without any restraint.

    Tucker Carlson re the US Ambassador to Zimbabwe, but totally applicable to Lowe IMHO.

  27. miltonf

    It also demonstrates that so many critical decisions are taken be unelected technocrats. If they were good decisions taken to advance the true welfare of the country and its people that would be ok. Malicious incompetence is the reality.

  28. duncanm

    Who pointed to this video the other day?

    It points out the Morrison government is already way down this path.. so what is Lowe opposed to? Not moving fast enough?

    http://www.youtube.com/watch?time_continue=1&v=_QQVepvQTyg

    We really are screwed if these guys are allowed to pursue their agenda.

  29. duncanm

    ye gods – from that greens’ article.

    “Pay rises for public servants to boost the economy”.

    Why not double down on stupid.

  30. egg_

    ABC Insiders has ScoMo saying UK, Germany and Singapore Economies shrank compared to our growth.
    Only the Immigration Ponzi scheme making our figures look good in a Global downward trend?
    Comrade.

  31. Roger

    He talks about “mad populism” of the Whitehouse coming to Australia, not enough being done about climate change in the SMH article on his big interview. He rides a bike, worships indigenous culture and the RBA is an activist bank, females should be “feisty” according to the SMH and he is anti Brexit.

    Yet another Prog-Left Narxist.

    The corporate boardrooms and public service upper echelons are swarming with them.

    We’re doomed.

  32. Roger

    ABC Insiders has ScoMo saying UK, Germany and Singapore Economies shrank compared to our growth. Only the Immigration Ponzi scheme making our figures look good in a Global downward trend?
    Comrade.

    The jig is up, Scott.

    Why, Alan Kohler even makes jokes about our immigration Ponzi scheme “economic growth” on the ABC.

  33. Keith Forwheels

    Dear Milton, yes, technocracy is the key word, the right / left paradigm is just an echo chamber to keep the proles fighting over team red team blue issues, while everything that matters to an individual being able to live a good and meaningful life becomes controled, regulated & rationed by the faceless people pulling the strings of the policital actors (in all of the word). I am truly puzzled who so many people think Scott Morrison is a saviour, goes to show how much framing matters in moving psychology – rather that reading the all house rules before we send our best and brightest to Canberra perhaps they should start with Bastiat.

  34. miltonf

    I think Morrison was a saviour to the extent that the SLF and his pals didn’t get in. No more than that. Taking on the canberra leviathan is a massive task. Only people like Latho and Pauline seem to be trying.

  35. Alan

    A good UK article was written that may explain why our conservative parties look and talk “right-wing” while enabling leftwards policies: “under the surface there have been slow, steady, stealthy changes to our culture and our way of life”.
    Hat tip to Quadrant.

  36. John A

    Texas Jack #3150213, posted on September 8, 2019, at 7:58 am

    Genuine questions here – I would love to know what Steve and Judith would replace the RBA with?

    I’ll offer you an answer, TJ, mostly to remove without replacing.
    1. Remove the lender of last resort facility
    2. Require banks to adhere to the same solvency rules that every other company does. To be able to pay their debts (to depositors and investors) as and when they fall due means a 100% cash reserve against on-call and maturing funds (no need for a reserve ratio to be specified)
    3. repeal the RBA Act and leave in place ONLY the payments system provisions, to enable clearance settlement between financial institutions
    4. let the government bank with the commercial banking sector. If the government needs to borrow they can pay the going rate just like everyone else. Banks will naturally factor in some sovereign risk (aka the Keating Adjustment Factor: “If I owe the bank a million dollars the bank has a problem”). Banks will also have to fund their lending by offering decent rates to depositors/savers/investors.

    How do you like dem apples, ey?

  37. Dr Fred Lenin

    What will happen when interest rates are minus 5 pc,financial transactions over $50 must be reported ,the highest denomination note is $20 and migration is 500,000 a year ?
    Sound ridiculous does it ? The polliemuppets are not capable of doing that ?
    Just look what the bastards did with Brexit ,a simple witdrawal from a club made into a 4 year drama .
    Read the referendum voting paper its simple ,do you wish t remain in the EU? Do you wish to leave the EU? Absolutely no mention. if any deal ,not a word ,so much for the “the peasants didnt vite for a no deal Brexit ?

  38. Sean

    Lol, as if the ALP were ever going to deliver a surplus.

    Shorten would be raising public servant wages and blowing out spending by now

  39. Squirrel

    Federal governments have spent the last couple of decades pretending that the bloat from Big Australia is real and sustainable economic growth (and comes with no costs), and the RBA has been busily denying the existence of and deflecting attention from the massive asset price bubble which they have enabled.

    Both are guilty of pushing the idiotic concept of “the wealth effect” – i.e. luring households to live beyond their means.

    Lots of pigeons coming home to roost.

  40. Sean

    ‘You don’t know who’s skinny dipping until the tide goes out’

  41. Chris M

    We’ve had ten years of stimulus and look where it’s got us, and now they want more!

    The Greens want new batteries for the stimulator!

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