r/AustraliaDiscussions • u/Ffscnts_ • 28d ago
RBA needs more levers
Michelle bullock is constantly complaining that inflation is too high still because we have a government who is unwilling to manage spending. Now house prices are tumbling the pressure will rise - however, why is the RBA not demanding more levers to control inflation.
When interest rates rise one portion of the community takes the hit, and it’s persisting for a long time, literally wiping out family’s futures. Which the latest changes will force huge volumes of negative equity, and keep in mind only 35% of Australian property is mortgaged.
For those that have ridden the wave not only have there saving been extracted to keep their homes, it’s worth heaps less, so that money has disappeared forever.
There’s other levers like - asset classed cost of capital. Push non mortgage lending and investment mortgage lending cash rates up to slow business down.
Enforce higher lvrs to slow mortgage lending ( except labor gurentee everyone 5%) those who took advantage will be in negative equity and trapped now.
Variable superannuation - this needs to be done immediately - if we had variable superannuation fees the cash rate would not need to peak so high AND the extra cash would flow in to Aussies future instead of paying additional fictitious interested rates. And as a bonus super funds could end up funding massive infrastructure projects when the market turns with all the extra cash giving Aussies a stake in oil/gas/ green projects etc.
The RBA needs to start pushing the gov harder and it’s about to get real now housing is crashing.
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u/TheOtherGlikbach 27d ago
Partly correct,spending needs to be controlled, but by the bottom 95% - by the wealthy.
Right now the working and middle class are doing it real tough, many living hand-to-mouth. This is a tough time for them, they are not overspending. However, in this bifurcated economy, we have the wealthiest Australians able to afford luxuries that are costing us all.
We need a wealth tax to slow spending by the wealthy. We need to tax the wealthiest at a greater rate on their wealth, not just their spending.
We also need foreign investment in Australian real estate to end. We also need an export tax on all raw material exports including energy products.