The RBA, politicised conmen with a gun to the head of the Australian economy

[Gough]

At what point are the RBA going to look at company profits as a source of inflation? Something has gone badly wrong in a society where going to the dentist and getting a haircut is now discretionary spending.

 

[Gralin]

At what point are the RBA going to look at company profits as a source of inflation? Something has gone badly wrong in a society where going to the dentist and getting a haircut is now discretionary spending.

when the board is mate up of board members of those companies

never

 

[The Cryptkeeper]

The RBA has ****ed us all over. Michele Bullock is just Philip Lowe with a skirt.

When interest rates start coming down again I bet not a single landlord will reduce the rent they are charging. The legacy of these rate rises will be a more expensive rental market.

The rich just keep getting richer.

 

[The Cryptkeeper]

She didn't mention Coles and Woolies though. Chicken s**t, it's easier to go after smaller independent businesses.

I deal with WW on a daily basis in my job. Their margin demands increase every year. Do not believe any of their lies about trying to support struggling Australians. They are utter scum and it’s time suppliers stood up to them rather than bending over when dragged to the negotiating table.

The same goes with Coles.

 

[Seeds]

The RBA has ****ed us all over. Michele Bullock is just Philip Lowe with a skirt.

When interest rates start coming down again I bet not a single landlord will reduce the rent they are charging. The legacy of these rate rises will be a more expensive rental market.

The rich just keep getting richer.

Rent has nothing to do with interest rates and everything to do with supply and demand. Rents have gone up cos we have a lack of housing problem. Landlords would never of been able to get away with raising rents in the past two years if there was no supply shortage. We just havent built enough houses for numerous reasons. Blame the government for this. Not the RBA.

 

[Seeds]

At what point are the RBA going to look at company profits as a source of inflation? Something has gone badly wrong in a society where going to the dentist and getting a haircut is now discretionary spending.

Never because inflation is the consumer price index.

And think through the logic of what you are asking. do you want the rba to put up interest rates even higher then they already have because you think profit rates are up? Ps. Profit rates arent up but if you think they are it appears you asking the rba to boost rates higher on households and businesses?

 

[Seeds]

She didn't mention Coles and Woolies though. Chicken s**t, it's easier to go after smaller independent businesses.

No she didnt. But why do we only complain when large companies raise prices and not small companies? After all, the biggest prices rises during the pandemic came from tradies and construction companies. Are we not being a little hypocritcal to focus on one and not the other?

In any case there is actually nothing wrong with increasing prices because demand has risen or supply has fallen. Not rising prices produces worse outcomes in such circumstances cos it creates shortages. The price is supposed to adjust when demand or supply changes. This is what encourages society to redirect resources to where its most wanted (asuming the government hasnt imposed constraints that prevent this from occuring). If the price doesnt respond to demand supply imbalances then resources wont move to meet wants.

The only time raising prices is bad is when companies have monopoly power and raise prices while withholding supply because they dont have to worry about a competitor stealing their market. This is the price gouging we should complain about. An example of this recently being qantas who left planes setting on the tarmac 18 months longer then they had to so they could jack up flight prices and had the government protect them by not allowing extra flights from competitors into the market. This price gouging makes me furious. But hairdressers, tradies and even supermarkets and landlords not so much.

 

[Golden_6]

Bullock seems just as out of touch as Lowe was. The system is completely broken as young people are disproportionately hit by what is happening. Certain cohorts are spending more than ever yet they target the ones that are most vulnerable.

This graph sums up everything that’s wrong with the current situation.

 

[Seeds]

Bullock seems just as out of touch as Lowe was. The system is completely broken as young people are disproportionately hit by what is happening. Certain cohorts are spending more than ever yet they target the ones that are most vulnerable.

This graph sums up everything that’s wrong with the current situation.

View attachment 1859708

its not bullocks fault. She aint government. She only has the interest rate at her disposal.

The way to solve this problem is replacing income taxes with wealth taxes (and an inheritance tax) and introduce an independent fiscal authority that adjust the tax rate to help target inflation.

yet young people dont seem to get behind this in large numbers despite the massive and in my view justified benefits it would give them. I cant figure out why.

 

[Syd]

Didnt you just two posts earlier complain about businesses gouging consumers? Isnt she arguing thats what hairdressers and dentists are doing?

Conveniently left out Banks, Insurance Companies, The Coles\Woolworth's Duopoly and a plethora of others that have a much higher impact on the COL.

But yeah.

 

[The Cryptkeeper]

Rent has nothing to do with interest rates and everything to do with supply and demand. Rents have gone up cos we have a lack of housing problem. Landlords would never of been able to get away with raising rents in the past two years if there was no supply shortage. We just havent built enough houses for numerous reasons. Blame the government for this. Not the RBA.

What you are missing here is that landlords are putting up rents because the debt servicing on their investment properties becomes more expensive with every interest rate rise.

They will not reduce rents when those rates fall.

To default to it being a supply and demand market oversimplifies the issue.

 

[Kram]

I deal with WW on a daily basis in my job. Their margin demands increase every year. Do not believe any of their lies about trying to support struggling Australians. They are utter scum and it’s time suppliers stood up to them rather than bending over when dragged to the negotiating table.

The same goes with Coles.

Woolworths are an evil organisation, just ask any supplier or contractor that's had anything to do with them.

 

[Gralin]

Rent has nothing to do with interest rates and everything to do with supply and demand. Rents have gone up cos we have a lack of housing problem. Landlords would never of been able to get away with raising rents in the past two years if there was no supply shortage. We just havent built enough houses for numerous reasons. Blame the government for this. Not the RBA.

Yeah all those investment properties bought with loans, none of those owners would put rent up just because their costs are going up

would never happen, no its just purely because they can price gouge

maybe stop talking so much s**t hey seeds

there is a combination or price gouging and interest rate pressure pushing up rental costs

we don't actually have a supply issue, we have a policy issue that allows house hoarding which is a government issue not an RBA issue but the RBA isn't helping the situation for renters by telling them to stop spending when its not them spending to begin with

there is enough housing, too much of it is kept off the market for personal gain

you can't build your way out of this problem because the current policy settings just means those with the means will continue to buy up that new stock to keep the artificial shortage going and their wealth growing

 

[adogsfan5]

Woolworths are an evil organisation, just ask any supplier or contractor that's had anything to do with them.

Coles aren’t much better. Red sale signs that look like a bargain…being stuck over a lower original cost… I might start checking if they are still doing it.

 

[Gralin]

Coles aren’t much better. Red sale signs that look like a bargain…being stuck over a lower original cost… I might start checking if they are still doing it.

yeah the bullshit price reductions

same price as before and a higher normal price to discount from

remember when the drought relief levy got put on milk and then it came out Coles wasn't passing it on but pocketing it?

they both get caught for wage theft, they both screw over suppliers

woolies is the largest operator of pokies machines in Australia

 

[Carn The Berries]

What you are missing here is that landlords are putting up rents because the debt servicing on their investment properties becomes more expensive with every interest rate rise.

They will not reduce rents when those rates fall.

To default to it being a supply and demand market oversimplifies the issue.

And to ignore it completely is an equally inappropriate assumption.

If/when interest rates come down, if there is sufficient supply in the market to drive competition landlords would have to consider lowering their rents to attract tenants.

I get the point you're trying to make, but you can't dismiss supply any more than dismissing the impact of rate rises, they're interlinked.

 

[Gralin]

And to ignore it completely is an equally inappropriate assumption.

If/when interest rates come down, if there is sufficient supply in the market to drive competition landlords would have to consider lowering their rents to attract tenants.

I get the point you're trying to make, but you can't dismiss supply any more than dismissing the impact of rate rises, they're interlinked.

interest rates coming down means landlords can afford to buy more properties to keep supply down

 

[adogsfan5]

Cmon you selfish pricks, let’s all push our haircuts out two weeks, brush your teeth more often and stop eating at restaurants.
Let’s put hairdressers, dentists and the hospitality industry into a hole, for the better good!

 

[The Cryptkeeper]

And to ignore it completely is an equally inappropriate assumption.

If/when interest rates come down, if there is sufficient supply in the market to drive competition landlords would have to consider lowering their rents to attract tenants.

I get the point you're trying to make, but you can't dismiss supply any more than dismissing the impact of rate rises, they're interlinked.

I didn't dismiss it. I was rebutting a previous point.

 

[Golden_6]

Yeah all those investment properties bought with loans, none of those owners would put rent up just because their costs are going up

would never happen, no its just purely because they can price gouge

maybe stop talking so much s**t hey seeds

there is a combination or price gouging and interest rate pressure pushing up rental costs

we don't actually have a supply issue, we have a policy issue that allows house hoarding which is a government issue not an RBA issue but the RBA isn't helping the situation for renters by telling them to stop spending when its not them spending to begin with

there is enough housing, too much of it is kept off the market for personal gain

you can't build your way out of this problem because the current policy settings just means those with the means will continue to buy up that new stock to keep the artificial shortage going and their wealth growing

Funnily enough, we're trying to book a house in Adelaide for a bucks weekend. We found a house via Airbnb for $3200 (for 2 nights) but was unable to book through the website. The owner proceeded to ask me to call her and said she owned 6 properties in the area and would prefer to book privately so Airbnb don't take a cut. She then tried to offer me the house for $4,400 (increased price with no booking provider charges) and tried to claim she was doing me a favour.

There's no reason why one person should hold 6 perfectly good residential properties for price gouging on the short-term market. This is the single biggest issue in the housing market and is so simply to fix.

 

[Demonic Ascent]

No she didnt. But why do we only complain when large companies raise prices and not small companies? After all, the biggest prices rises during the pandemic came from tradies and construction companies. Are we not being a little hypocritcal to focus on one and not the other?

In any case there is actually nothing wrong with increasing prices because demand has risen or supply has fallen. Not rising prices produces worse outcomes in such circumstances cos it creates shortages. The price is supposed to adjust when demand or supply changes. This is what encourages society to redirect resources to where its most wanted (asuming the government hasnt imposed constraints that prevent this from occuring). If the price doesnt respond to demand supply imbalances then resources wont move to meet wants.

The only time raising prices is bad is when companies have monopoly power and raise prices while withholding supply because they dont have to worry about a competitor stealing their market. This is the price gouging we should complain about. An example of this recently being qantas who left planes setting on the tarmac 18 months longer then they had to so they could jack up flight prices and had the government protect them by not allowing extra flights from competitors into the market. This price gouging makes me furious. But hairdressers, tradies and even supermarkets and landlords not so much.

Smaller businesses may price gouge but they are less able to cope with inflationary prices on their overheads so it is more likely their prices are due to increased running costs. Supermarket duopolies that price gouge while banking record profits are part of the problem. The RBA chief making snide comments about hairdressers and dentists while ignoring the companies that are the larger problem shows me that she and the rest of the theoretical economists and politicians are living in lala land

 

[Demonic Ascent]

Bullock seems just as out of touch as Lowe was. The system is completely broken as young people are disproportionately hit by what is happening. Certain cohorts are spending more than ever yet they target the ones that are most vulnerable.

This graph sums up everything that’s wrong with the current situation.

View attachment 1859708

They're moving on from blaming young people unable to afford a house due to spending on smashed avo and mobile phones to young people being unable to afford a house due to spending on haircuts and dental checkups.

 

[matt_897]

They're moving on from blaming young people unable to afford a house due to spending on smashed avo and mobile phones to young people being unable to afford a house due to spending on haircuts and dental checkups.

Well, it's an improvement I guess...

 

[The Cryptkeeper]

They're moving on from blaming young people unable to afford a house due to spending on smashed avo and mobile phones to young people being unable to afford a house due to spending on haircuts and dental checkups.

We’ll all end up with teeth like the Brits and that will be a national disaster.

 

[Gralin]

Smaller businesses may price gouge but they are less able to cope with inflationary prices on their overheads so it is more likely their prices are due to increased running costs. Supermarket duopolies that price gouge while banking record profits are part of the problem. The RBA chief making snide comments about hairdressers and dentists while ignoring the companies that are the larger problem shows me that she and the rest of the theoretical economists and politicians are living in lala land

The idea that they don't know what they are doing I think is people not wanting to think that our Central Bank is knowingly doing this and lying to the public about it

But remember they are part of the system regardless of what they pretend.