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The RBA is happy to fund private banks but won’t fund infrastructure – Senate Estimates 28.11.22

The RBA governor is clueless.

He has no understanding of monetary policy.

He cannot distinguish between lending to the private sector and the public sector. He also cannot distinguish between secured and unsecured debt.

He contradicts himself so many times in this conversation it is embarrassing.

First he says the RBA shouldn’t subsidise governments yet he is more than happy to subside private banks. (see prior videos)

He then says the RBA doesn’t decide what projects it should lend on. No one said it should decide what projects it should lend on. However it should lend on projects that governments need to build to provide essential services such as dams and power stations.

Having said the RBA can’t lend to governments, he then admits that the RBA did actually lend to the government in order to destroy the economy because of C vid. In other words he print and spent rather than print and built. Dumb move.

Finally he tries to dismiss my statement that the taxpayers have to pay a mark up on their own currency to the banks by claiming governments don’t borrow from banks they issue bonds. He has no idea. The banks who buy those bonds charge interest on them that is ultimately underwritten by the taxpayer. The banks gets to make a profit on government paper. If the RBA issued the bonds via an infrastructure bank, the interest charged could be returned to the government costing the taxpayers nothing.

The RBA also has no idea of the meaning counter cyclical. Why are they raising interest rates if the cost of everything else is rising. They are only compounding cost of living pressures.

They should expanding the volume of credit to fund the supply of more electricity into the grid, rather than senseless austerity measures that only hurt hard working taxpayers.

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  1. Gas and Coal made $160 billion profit jest this year and we give them a tax relief of $5 billion for the diesel they use That’s what was said by the Prime Minister yesterday. And our criminal Government are giving us The people 1.5 Billion as a household gift towards our power bills .Dont tell me they are Criminals.

  2. Applicable interest is the toxin in the system. Privatised money creation should not exist. Governments could lend and create interest free money with no taxes as taxes would be in the form of a natural and steady inflation as a consequence of government spending based on available skills and resources with no boom and bust biproduct.

  3. Was that Lowe finally admitting he is responsible for inflation. He said if he subsidises funding to the Government it would and up leading to inflation which is exactly what he did with the banks. $188B of free money and hay presto. We have inflation. It’s not supplied side or Ukraine. It is simply demand side and Milton Freedman’s Quantity Supply of Money. If you increase the money supply by 15-18% a year for 2 years it all eventually comes out in inflation. Great job as always Senator Rennick. GM

  4. The problem is when parliament decides to improve infrastructure and builds roads and tunnels etc paid for by gathered funds from taxes once completed they then sell them to private companies who then charge us more for the privilege of using these tunnels roads bridges etc. Both state and federal continually do this. Why not keep these assets in government ownership at a resonable fee and we benefit in the long term, as say, a super fund or improving once again infrastructure.

  5. The problem is the RBA has the ability to create money out of thin air, with a few keystrokes on a keyboard, without effort and they charge us interest for the privilege. Once that was considered fraud. Central banking (fractional reserve banking) was created to stop banks collapsing when there were runs on banks, just after the turn of the 20th Century. For thousands of years, humanity has gone through periods where precious metals were money (and periods where the rulers diluted money with less valuable metals inflating the money supply until it collapsed, or replacing it with fiat currencies). When gold and silver were still money, the banks gave out bank notes (silver or gold certificates), people kept their wealth in bank vaults to avoid theft and traded with their bank certificates. Banks loaned out money they didn't have as bank certificates, in other words a factional reserve. When people got wind of a banks insolvency / fraud, there would be a run on the bank, to get their money before everyone else, as there was only a fraction of their deposits left. Instead of auditing banks and making sure they had what they claimed (traceable gold and silver for every certificate), central banking was created to manage the fractional reserve system, effectively legalising fraud. The problem is, the banking system today is not backed by anything. Currency is created out of debt and debt has to be paid with interest, via taxation. As the debt is always growing due to interest, so too does taxation, it can never be paid off, only forgiven. Once money was created by mining and smelting gold and silver, governments provided a service to mint it into coinage. When the current system collapses, the people will have the opportunity to be rid of fractional reserve banking, however powers that be, want to replace it with CDBC's.

  6. problem from public perspective is Gerard is dealing with children .
    Banks given as us all govirment departments have immunity because there not responsible to there actions .or can be under law .
    head of bank has had no job ever in his life .
    has no idea how money Dept is created.
    his education is based on theory. debating , manipulating , and has no data ..Education creates useless pea brain with no intelligence ..Trillions $ wasted annually on no accountability for there child minded tantrums , acts , .Noticeably they can not give yes no answers and use big words that can mean 10 different meanings .any enquiry is self investigated with no crime attached …all government departments , agency's, , are not accountable ..

    Australia needs people in parliament that can problem solve have logic and common sended, had a job for 25 years as reference ….

    question : Medicare why does it no have Medicare payments directed to non western medicines based on Cures, and preventative health .
    Chinese have medicines thousands years old and cures .
    Asian massage has preventative proven health benifits 20,000 year tested .
    western medicine is based on petrol chemicals used in robotic AI testing only . not one cute on 100 years but given trillion , billings yearly on research but kill v malpractice govorment funded $ .
    white education in government have pea brains and a waste of food given to them unless eatersdo do birds .
    senator Gerard Ruddick is realistic but having patience talking to bird brains .

  7. I have the feeling this money swindle by banks and their lending system is happening on a world scale. Dont forget, its tax payers dough they are spending or getting. None of these w/ bankers actually work for their money. Why has a incredibly rich country like Aussie (or here in the Netherlands) have debt at all?? Health and wisdom to all, Erik the Netherlands

  8. The federal government through the RBA creates the money supply out of thin air, so it is a 'free lunch'. There is no need to issue bonds to borrow money. The RBA does not need to charge the government interest, it's simply the left hand taking from the right hand. The idea of issuing bonds and lending to the banks at 0.15% is to simply keep the wealth within the elites. The federal government could easily use the RBA to fund infrastructure projects and reduce the high levels of private debt.



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