This time John Kehoe at the AFR, who MB likes sometimes because he’s more honest about immigration, but is like his rotten fishhead boss when it comes to politics.
If the RBA does bow to the weight of market and political pressure to immediately lower interest rates, Bullock should indicate that only two or three rate cuts are anticipated over the next six months – and it will be a case of wait-and-see after that.
Any rate cut this month will embolden more election spending by politicians and therefore have important political and economic ramifications.
Blah fuckity blah.
Either the economy is weak enough, and inflation following it, to warrant rate cuts, or it is not.
Whether the election will spend a few extra billions is irrelevant.
More.
A pre-election rate cut will also relieve the necessary pressure on Labor and the Coalition to deliver overdue productivity-boosting reforms to tax, workplace relations, energy, competition and regulation.
Politicians will instead obsess over the short-term economic fluctuations, not the economy’s long-term structural position, which is far more important for real incomes and living standards.
True. But are there any election proposals for that now?
Nope. Again. RBA irrelevant.
Moreover, if there were a party promoting those policies, the rotten fishhead would be the first to oppose them, such as:
- Henry Tax Review. Lol.
- Negative gearing reform. Lol.
- Smashing the gas cartel. Lol.
- Huge new mining taxes and cuts for everyone else. Lol.
- Industry policy. Lol.
- Slashing immigration to zero. Lol.
- Severe competition reform.
The rotten fishhead would destroy every one of these policies if they were on a platform.
It stinks!
