The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Saturday, February 11, 2012

The great RBA/bank/media ruse...

It's a classic that nobody has remarked on yet. And it goes like this:

Bankers: Oh the RBA's cash rate has nothing to do with our cost of funds, and we have to set our interest rates independently of the RBA's rate, sorry. (Cheering in background by typically right-wing media.)

RBA/media proxy: Oh don't worry about the bankers' independently lifting rates higher of RBA cash rate movements. The RBA controls lending rates through its cash rate. So if the banks lift lending rates higher, the RBA will just reduce them again by cutting its cash rate.

They really think you are that stupid.