Monday, April 7, 2008

Leave the Reserve Bank alone

Glenn Stevens, the head of the Reserve Bank, has been coping crap from the press. The Telegraph had this article today ,supposedly standing up for us Westies, and Glenn Milne in the Australian got stuck into Stevens too.

Look, the RBA's job is to control inflation. My schoolboy's definition of inflation was "too much money chasing too few goods". The Bank has been rising interests rates so that people like you and me DON"T spend. Its supposed to hurt.

I say this as a person living in the Western Suburbs with a mortgage. Does the Telegraph really think its readers would be better of with high inflation? Or worse still the stagflation of the 70's? The RBA thinks the current rates will bring inflation down again, when that happens interest rates can come down too. In the mean time we just have to cope. If the Telegraph really wants to stand up for home buyers and renters, they can attack governments unwillingness to do anything about real estate supply. That's the real problem.

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