The profoundly corrupt and stupid interest rate complex was as wrong, wrong, wrong as the RBA cut.
Now, it is readying more WRONG.
The RBA said Australia’s strong labour market was a “strong argument” for keeping rates on hold. That’s after the central bank cut rates for the first time since 2020.
“One of the stronger arguments, I think, on the side of not doing anything, was caution,” she said. There was an argument to “wait for more data to see what is exactly happening to the labour market. Is that feeding through to wages pressure? And is it feeding through to inflation?”
“When you hear us talking about the state of monetary policy… you’ll see that the labour market does feature quite prominently, [so] that it is something that came up a lot.”
Was the word “immigration” mentioned in any of the discussions? Nup. Not in the statement, not in the presser.
This is lunacy. Immigration is wildly out of control, and, as the last cycle made clear, the immigration-led labour market growth model does not do wage growth.
Period.
It is Australians’ curse to live through a period of such profound intellectual collapse that this will never be mentioned for fear of…you guessed it…cries of…
RACIST!
So, we have a lunatic RBA wondering why unemployment is so low, correlated with tumbling wage growth, when the answer is as obvious as vomit on your shirtfront.
The mass-immigration, labour market expansion growth model does not do wage growth because it comes with a permanent low-cost supply shock.
How the idiotic central bank can ignore this relationship after a decade of demonstrable correlation is an enduring mystery of corruption.
Yet, it is also an opportunity.
Buy more rate cuts for the RBA does not know what it is doing, and it will be mugged by deflationary data.
