Dear Santa, please bring Leitho what he wants so he stops bugging mum

Over at MB today we have the usual – Leitho finding himself naively confused about simple things again:

What’s the point of conducting RCs if the government that ordered the inquiry acts directly against its recommendations?

https://www.macrobusiness.com.au/2021/03/the-responsible-mortgage-lending-fix-is-in/

This clearly displays a lack of understanding of what the EZFKA is or how the EZFKA works.  In the same vein, Leitho goes on to write stuff about his much desired macroprudential:

So, if responsible lending is scrapped then it will immediately hasten macroprudential tightening with the two hands of government working at complete cross-purposes.

https://www.macrobusiness.com.au/2021/03/the-responsible-mortgage-lending-fix-is-in/

That misunderstanding of EZFKA is really quite unfortunate, but today I don’t feel like penning a detailed explanation. It seems that any rationally based approach is likely to fail, anyhow. 

There might be another way however. Perhaps where reason fails, faith might triumph? So here’s a prayer: 

Dear Santa, please please please bring Leitho what he has been asking for foryears and scrap responsible lending so he can witness first hand what the “immediate hastening of macroprudential tightening” looks and smells like. 
Love Peachy

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Djenka

LOL, the first quote wrt RC is my thought ‘zactly.
Blind Freddy et cie.

The90kwbeast

Peachy – I take it from years of MPLOL that you don’t see the RBA dropping the hammer on MP?

Supposedly the RBA and the Govt. according to the below are on a collision course however I think this is all about the optics from the RBA about being seen to be doing the right thing.

The RBA said they would never cut below 0.25% in I think it was March last year also, and look at where we are now…

https://www.abc.net.au/news/2021-03-15/why-the-rba-and-the-government-dont-see-eye-to-eye/13247498

The90kwbeast

Next up, negative interest rates? After the RBA has said about a dozen times it won’t happen. Let’s see eh…

Stewie

Debt is social enslavement – the LNP are the main proxies of those who wish to enslave us (as opposed to the controlled opposition which is the purpose LAB serve).

It is not good enough that we are enslaved, but that we WANT to be enslaved. We express this desire by repeatedly voting for those who pass this legislation and feasting on the immediate satisfaction of wants that debt facilitates.

Never mind that the game is rigged, or that the political parties are controlled, it doesn’t matter to those who rule over us. We signal our willingness for continued enslavement by playing along.

Last edited 4 months ago by Stewie
Freddy

We were not all willing participants. That brings us to the recent financial repression policies to effectively steal from workers savings via negative real interest rates.

Last edited 4 months ago by Freddy
bjw678

 to effectively steal from workers savings via negative real interest rates.

This is just a more obvious form of stealing via inflation which has been par for the course for a long time…

Freddy

There is a wish for wage inflation. Oddly enough I believe there will be a brief period where that may work in favour of existing savings. Maybe a topic for another article in the near future.

The short of it is, let’s say wages rise 5% and RBA sticks to their guns and “let’s inflation run” for a couple years. Instinctively you would think that savers have been robbed of a little over 10% in purchasing power and you would be correct up until the point RBA forced to raise interest rates.

Freddy

Maybe. There was a proviso of wage inflation which I have previously stated I can’t see it any time soon with all the existing wage suppression policies.

Illis

Totally agree. I would contend that Government ‘Citizenship’, the international apparatus behind it and our ignorance of the understanding of what it actually means is the true source of our enslavement. All by unwitting consent on our parts.

stagmal

what the hell is a macro prunedental

Last edited 4 months ago by stagmal
stagmal

yeah even though i have no idea what marco provesmental is what you just said reminds me of the age old delusion thats been on MB for years, the idea that australians want lower house prices/ of course the average australian wants just and fair economic outcomes for everybody and totally isnt motivated by naked self interest and blah blah blah

making predictions and investment decisions based on the just world fallacy seems like bad news bears,

Chinese Astroturfer

Lethal Leigh seems like a nice guy, sensible with his blogs, very matter of fact.

He must cringe when he sees what Delirious Dave writes some days. Delirious Dave made a choice years ago I’m going to write fringe, crackpot articles for attention on the internet, each prediction more outlandish than the last.

Lethal Leigh is a young man when MB goes belly up he’s going to have to find a job. I’d dare say that DLS is unemployable in the finance industry.

Big Bertha

Leith actually worked as an economist and at the RBA if I’m not mistaken. Whereas Dave is just a “writer”….that used to “trade gold” (meaning what exactly? Buying and selling a few PMGOLD shares? Selling his grandma’s jewellery down at the pawnbroker?)

Last edited 4 months ago by Big Bertha
Big Bertha

*correction – the Australian Treasury, not the rba