thegreatdivide wrote on Oct 23^rd, 2026 at 4:46pm:



Google AI  gives the view of the RBA itself -
that's like the fox in charge of the hen house - you fool.
In any case they still admitted that it caused some inflation.



The RBA's View on Causation

• 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.

• 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.

Bobby. wrote on Oct 23^rd, 2026 at 7:37pm:


Who said this is the view of the RBA?

namely

Inflation and interest rate rises are not caused by the Reserve Bank of Australia (RBA) printing "funny money."
Recent inflation is driven by a mix of global supply chain shocks, rising global energy costs, and strong domestic demand.

How on earth did you ascertain this was "the view of the RBA", and not Google AI's conclusion?

Quote:


They did NOT admit "the RBA printing funny money caused inflation" - which is your ideologial rewording of Friedman's  monetarist dogma and Thatcher's "other peoples' money" b,  implying only taxpayer money is 'real'  money.

Quote:


Is that the RBA's view or an AI agent's summation?

in any case the RBA are neoclassical 'austerity' economists to a man (and woman)...though note the underlined, which is a rejection of your  absurd assertion "RBA funny money causes inflation".

And the pandemic (with QE) was a factor in inflation via emergency funds creation....no kidding,  given the related supply chain shocks.

TGD - I didn't include the links that came straight from the RBA.

You'll lose this one and have to apologise if I go and find them.   

For educatiuonal purposes:

(google AI)

MV = QT is the Equation of Exchange, a core concept in monetary economics that shows the direct relationship between the money supply and prices in an economy.
(It is a variation of Irving Fisher's famous MV = PY).

Here is what each letter represents:
• M (Money Supply): The total amount of money circulating in the economy (cash, checking accounts, etc.).

• V (Velocity of Money): The number of times a single unit of currency is spent on goods and services during a specific period.

• Q (Quantity of Transactions / Real Output): The total volume of physical goods and services traded or produced.

• T (Transactions / Price Level): In this specific notation, T often represents the total number of transactions, while Q acts as the price index (though traditionally, P is used for price and T or Y for transactions/output).

Note on notation: If your formula uses T as the general price level and Q as physical output (MV = TQ), it behaves exactly like the standard MV = PY (Money × Velocity = Price × Output).

How the Equation Works (The Movie Ticket Analogy)

Imagine a tiny economy with only one $10 bill (M = 10).
• If that $10 bill is used 5 times in a year to buy different things, the Velocity (V) is 5.
• Left Side (MV): 10 × 5 = $50 total spending.
• Right Side (QT): This means there must be $50 worth of physical transactions (Q × T) bought in that economy. Both sides must always balance because total spending always equals the total value of what was bought.

The Core Economic Takeaway

Monetarists (like Milton Friedman) use this equation to explain inflation. They argue that in the short term, Velocity (V) and Real Output (Q) are relatively stable.

Therefore, if the government increases the Money Supply (M), the only variable left that can change on the other side is the Price Level (T).

In short: Printing too much money directly causes prices to rise (inflation).

The shortcomings in this theory are noted in the previous post

Hence bobby's 'RBA funny money-printing'  assertions are also refuted in the previous post.




          

Bobby. wrote on Oct 29^th, 2026 at 6:47pm:


Meanwhile in Oz, we are told "inflation is too high because of the economy's incapcity to meet demand for goods and services."

Nonsense: Oz has all the resources it needs for the government to be able to deliver the essentials for all, without causing inflation.

Stop being a Neoclassical goon. 

Bobby. wrote on Oct 31^st, 2026 at 9:36am:


Note: my 'funny money ideas' are illegal, so they haven't  caused anything so far; but my ideas will be necessary when governments can no longer pay back debt without causing riots - already beginning around the world.

The key to my 'funny money' ideas is government control of inflation, not central bank control (..even Albo has woken up: "the RBA's only tool is a blunt tool"; whereas  the economy requires a sharp tool capable of identifying the actual cause of inflation.)

But you are conflating several different types  of 'funny money':

1. Government printing of 'funny money' to buy resources which aren't available for purchase by the government, eg food (Zimbabwe), imports (Venezuela),  lost factory output (Weimar republic)  leads to  HYPER-inflation.

2. Printing 'funny money' during economic crises (aka QE) is different (and doesn't cause HYPER inflation):

(google AI)

How QE Works

1. Digital Money Creation: The central bank creates new electronic money out of thin air.

2. Buying Assets: It uses this money to purchase financial assets—such as government bonds and mortgage-backed securities—from commercial banks and private financial institutions.

3. Injecting Liquidity: The banks receive cash reserves in exchange for those bonds, increasing their overall liquidity

........

In non-crisis scenarios the majority of the economy's money supply is created (also out of thin air**)  in private banks when they lend money to private borrowers; and currently, governments are forced to tax or borrow money from the private sector. 

** answer this; if the population increases, how is the money supply increased? 

"Money doesn't grow on trees..."!.