RBA theory of too much demand on lack of available goods and services, pushes up prices causing monetary inflation, that reducing consumer consumption by raising interest rates, frequently by 25 bases points on chosen months, reduces available money supply reducing to much demand causing prices inflation, and people not indebted by borrowing money, take advantage of bank term deposits higher interest rates locking in term deposits, not bothering to mention as goods and services prices are predicted to rise people without debt may use spare cash to buy more goods and services before prices rise.

     Increase prices in crude oil leading to increases in domestic fuel prices which due to mostly fixed consumer consumption habits, fuel consumption doesn’t reduce by much as fuel prices rise due to fuel is used by most employees to get to work, to carry out work tasks, to transport food resources to destinations, etc., as more money is spent on fuel resources, less money is available to purchase goods and services RBA bases their theories on, having the same reduced money supply available for goods and services as RBA raised interest rates.

     What also exists is the theory of “just in time” that most businesses order goods to be delivered and stored in available storage just in time for sales.

     RBA raising interest rates blaming increased crude oil prices increased domestic fuel prices inflation merely increases business cost of money servicing interest rates increased interest charges, further causing businesses to increase goods and services prices after having to increase goods and services prices to cover the cost of increased fuel costs. As previously stated in other posts business reduced turnover persuades dependant on constant turnover businesses are persuaded to raise goods and services prices before considering ending business concerns, closing down further reducing business capitalist theory competition.

     The cost of living hardship borrowers are suffering from, families have reduced ability to have more children, that hardship leading to selling properties, can lead to marriage separations, more homeless people, more dependence on government handouts.

     How can governments get away with above theory events, people believe in what they believe in (transparency media democracy governing), I assume anything else causes denial confusion, don’t know what’s going on, don’t know what to do.

     I assume many readers easily understand certain language conditions fun loving easy to understand short one line statements. Serious language statements that don’t encourage readers to read further to understand new ideas, such people would have only read the first few words at best before they stop reading. Good for you to have read this far down the page.

steve9