Well - when your entire economy relies on shuffling money around and patching up the casualties - there's no real need to be having people depositing money in banks - they don't need people when they just play the markets all the time.

NAB have always been the worst bank - It's a miricle that they still exist.

Bobby. wrote on Oct 26^th, 2026 at 6:08pm:


OK, I'll  accept that at your word.

Quote:


So let's look at the 'RBA's assertions' again:

The RBA's View on Causation (of inflation)

• Supply-Side Drivers: Former RBA Governor Philip Lowe noted during Senate testimony that roughly 50% to 75% of Australia's inflationary spike was driven by global factors—such as post-pandemic supply-chain disruptions and international energy shocks out of Europe.

...which is correct: but he also said (in reply to Adam Bandt) that "the RBA isn't financing the government" - which is exactly what the RBA (or Treasury)  should have done during the pandemic rescue package, to avoid massive build up of government debt ie, debt which must now be repaid with interest...

• Domestic Contribution: The RBA conceded that low interest rates and pandemic-era fiscal/monetary expansion contributed to roughly 25% to 50% of the pressure on domestic demand, though it rejects the idea that QE was a simple or primary engine of inflation.

Also correct; and your claim"the RBA printing funny money causes inflation" is refuted by the RBA.

Quote:


You don't even understand how your own RBA quotes disprove  your absurd RBA 'funny money'/inflation ideation.

Re Friedman's monetarist orthodoxy

(google AI)

Milton Friedman’s famous claim that "inflation is always and everywhere a monetary phenomenon" is largely valid in the long run, but considered incomplete or too rigid in the short run.

Modern macroeconomics views Friedman's monetarism as a foundational truth with important real-world caveats:

What Friedman Got Right

• Long-Run Connection: Over extended periods, high and persistent inflation is driven by rapid expansion of the money supply relative to economic output.

• The Printing Press Link: Central banks and governments control fiat money creation; blaming corporate greed, trade unions, or individual consumers ignores the root cause of systemic currency devaluation.

• Stagflation Prediction: Monetarism gained massive credibility in the 1970s by correctly diagnosing and helping solve the stagflation crisis (high inflation paired with high unemployment) when traditional Keynesian models failed. Central banks still lean heavily on interest rates to curb excess money growth today


Where the Theory Falls Short

• Short-Term Shocks: In the short run, prices can surge due to non-monetary factors like severe supply chain disruptions, geopolitical conflicts, or sudden energy and food shocks (such as those seen post-pandemic).

• The Instability of Velocity (V): Friedman's equation of exchange ((MV = PT)) assumes that the "velocity of money" ((V)—how fast money changes hands—is relatively stable over time. In practice, velocity fluctuates unpredictably due to financial innovations, changing consumer behavior, and crises, making strict money-supply targeting unreliable for central banks.

• Causation vs. Accounting Identity: Critics note that (MV = PT) is a mathematical identity (true by definition) rather than a proof of strict one-way causation; sometimes rising prices or credit demand*** drive changes in the money supply rather than the reverse.

***eg the issue of 'subprime loans' to the private sector which caused the GFC.

So...back to the drawing board...

thegreatdivide wrote Yesterday at 5:44pm:



You could buy a loaf of bread with one of these: