Saturday Sanity Break, 10 August 2019 - RBA still confused
Updated: May 2
The US Fed has eased monetary policy, China has cut its exchange rate, global shares have taken a bath, New Zealand cut cash interest rate by 50 basis point, showing its brave attack on its monetary policy, RBA cuts cash rates 2 times .25, followed by a rest this week. Melbourne and its surrounds suffers a 'polar freeze' with great cold and powerful wind. And cartoonist Kudelka has a wonderful contribution, (today's Oz, p 35) illustrating Treasurer Josh's time travel policies with 'It's 2019, and you have already delivered a surplus for 2020'. Wow! Nothing stands still in the modern world and now fiscal policy risks 'ripping a hole in the fabric of time and space'.
Experts are now concerned that the USA-China trade spat is likely to take decades to sort out. Paul Kelly tells us (for those who have missed it) that Australia is caught in the middle. Agonising on how best to keep our great ally America on side and also keeping our great client China on side. Judith Sloan has finally killed her chance to be appointed to the RBA board by saying that Philip Lowe can claim expertise on monetary policy, but on the labor market he doesn't have a clue. Regular readers will know that Henry is uncertain about Phil's expertise with monetary policy due his to his lack of interest rate increases during the time of economic sunshine and the dangerous boom in house prices.
Come to think it, the mighty RBA has struggled for the past 27 years. Governor Bernie created our worst recession since the great depression, with the plunge in consumer inflation that is now causing Governor Phil trying to raise inflation. Governor Ian saw consumer inflation reach 5 %, well about the 'target range' of 2-3 %, with an accompanying asset inflation bubble, to be saved by the global financial crisis. Governor Glenn also failed to devise a strategy to handle asset inflation. And governor Phil now wants public service women and men to have wage hikes so he (Phil) can have help with his inflation target.
And its not as if these worthies do not have massive salaries and wonderful retirement packages. Wow! More excitement in the local economy which our leaders so far have failed to devise a policy to increase productivity, the only way to increase wages without ruining the economy.
Fiona Prior has a glimpse of the life and loves of the late bohemian artist Mirka Mora. What a lust for life! More here.
Wonderful win in the first Ashes test with a likely greentop for the second test. What fun for the selectors. Six fast bowlers with different strengths to keep the poms guessing. Plus 'GOAT' weaving his mysterious web, the next Bradman batting, and surely Warner will cut loose soon, with other good batters still to make a contribution.
In the footy, we have the Rugby World Cup to come, but first the Bludisloe Cup - what a warm-up - and no Falou, Australia's forth test try scorer at an age when he should be reaching his peak.
And the AFL season comes to a peak in September. Geelong, West Coast, Brisbane and Richmond are the likely top four and if Caaarlton! had won the two games which coach Teague's team lost by only 3 and 5 points we'd be battling for a final's spot.