And so it goes again - our fearless monetary leader yet again is going to be "patient" with driving this economy into a stagflation like a bicycle into a truck - https://www.morganstanley.com.au/ideas/the-RBA-remains-patie…
This is going to be a slow-moving process but eventually this will be a bloody train wreck for most of us.
Apologies to all short-attention-span folks who will be TLDR-ing this piece and moving onto the next cat-video in your playlist but for all you who want to know more about rising petrol prices and cost of living - read on.
We have alarmingly high levels of inflation in this country, and none of it is temporary as the RBA governor is trying to play it. All inflation is permanent for a simple reason that inflation is cumulative process - which means that every reported positive reading in inflation will take from you incrementally and more so from your future earnings.
Even if the level of inflation levels drops but remains positive, this simply means that the cumulative part of it has slowed but you are still being robbed of your current and future earnings. And with every incremental increase, the scale of robbery builds up like a pyramid.
But what can you do about it? What RBA can do about it? They say we say that all inflation is imported and is a result of geopolitical instability. Which is LIE! Every bit of inflation is LOCAL and based on supply / demand equation and every Central bank governor /chair knows that. RBA policies were the only reason for creating this overheated economy with high demand pull and sky-high inflation numbers as a result. Zero-bound interest rates, "free money" Term Funding Facility and massive government fiscal stimulus heavily distorted the cornerstone of a responsible monetary policy - the price of money and with the money becoming dirt cheap and easily available it has inflated prices on everything around you.
It just so happens that some Central banks governors and FED chairs are more honest than others with New Zealand, Canada, UK already having raised interest rates multiple times! The US is getting ready to do 7 hikes this year and even Eurozone ECB is turning hawkish!
Australia is NOT an exception, we just have the most hypocrite and untrustworthy politicians who manage to get the best "optics" but not results and do not have a capacity to think past the next election cycle. Inflation needs to become a political issue because politicians refuse to see anything below that.
New Zealand, our closest neighbor and a very similar economy, have raised rates several times and now their interest rates are on the pre-pandemic level because they know what they have done, what is coming, being honest about it and demonstrated the level of accountability that you would expect from a decent government. But Australian Central bankers remains "patient" and have not done ANYTHING, nothing at all to get off the emergency pandemic monetary policies - are we really such different economies, all of a sudden? Is Australia still in the middle of a pandemic or are we we being handed out the biggest bull$hit of a life-time by our own government bodies?
Inflation via fiat currency is a direct attack on your property rights on your current and (most importantly) future earnings and on you as a citizen because it happens without your consent and that is immoral and is illegal. Most people would not notice inflation as it happens gradually but then hits all of a sudden at a time when you will have to make a choice about which bill you have enough money to pay off this month.
YOU have a power to change that with your VOTE! Speak or write to your MP, make sure they listen to you. With the federal election looming, write to your local candidates - make sure your voice is heard. Speak to your family members, your neighbors, your cat for haven's sake.
If you feel like you are running on hamster wheel with all those ever-increasing bills and taxes coming at you and you seeing nothing for it, don't be "patient"! If you are worried about high inflation eating away at your future, don't keep silent, speak out!
Fam, literally nothing is going to happen. It doesn't matter if you cry out at the top of your lungs or cut yourself into a million pieces. The world is the way it is for a reason. And to be completely honest, the way I see it is that the people around me are 110% content with the way they live their lives. Suggest a change back to the gold standard? Well guess what, you're a boomer. Suggest a change to crypto? Your a conspiracy theorist and you are supporting a Ponzi scheme. There really is no winning. Governments will do whatever it takes to stay in power, cough cough USA/Liberal Party AUS. Just live your best life and focus on what matters most to you.