Australian Politics Forum - Labor Must Not Leave Inflation Fight To RBA

thegreatdivide

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #30 - Feb 6^th, 2026 at 1:18pm

Bobby. wrote on Feb 6^th, 2026 at 12:12pm:

Carl D wrote on Feb 6^th, 2026 at 11:46am:

Even at the age of 68 I still can't work this out.

"Inflation" is claimed to be caused by people spending too much money and the "idea" of interest rate rises is to slow down spending.

Is that right?

So, if people reduce their spending on shopping, holidays, etc., etc. doesn't that mean businesses may have to close (because of lack of customers) and workers lose their jobs?

Make it make sense.

I've suspected this for a long time but this whole financial system is a giant scam designed to keep the population in a constant state of panic which governments, banks and others are happy to see continue indefinitely because it diverts attention from their own massive incompetence, corruption and greed.

The Govts get into hopeless situations.

Indeed: governments the world over are now experiencing democratic dysfunction because of the Catch-22 dilemma forced on them by Neoclassical 'balanced government budget' ideologues who think currency-ISSUING govt. budgets are like currency-USING household budgets.

Neoclassical Catch-22: governments must increase taxes to pay for essential public services, but govts. must reduce taxes to get elected.

Quote:

example.

You pay taxes so you can get a pension when you're old but
that tax money is not put into an account for you -
it all gets spent and then they borrow more on top of that.

?? Keating started the national superannuation scheme to ensure you do have funds to spend in retirement.

(It's an entirely unnecessary scheme because currency-issuing government can't 'run out' of money, they just need to ensure basic goods and services will be available for retirees.

Quote:

So when it comes time to pay you your pension all your money is gone.
What do they do?
they print money to pay you -
and so the cycle continues.

So you are blaming retirees (past, present and future) for inflation...when it's total demand in the economy NOW which is causing inflation NOW.

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lee Gold Member Offline Australian Politics Posts: 20161 Gender:	Re: Labor Must Not Leave Inflation Fight To RBA Reply #31 - Feb 6^th, 2026 at 1:53pm
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Bobby.

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #32 - Feb 6^th, 2026 at 2:06pm

thegreatdivide wrote on Feb 6^th, 2026 at 12:34pm:

Bobby. wrote on Feb 6^th, 2026 at 11:33am:

TGD,

The RBA needs to stop printing money.

Even when the government has to "print" money, to keep people alive in a locked-down economy?

Yes - the economy shouldn't have been locked down over a cold -

99% of those who died were in aged care homes -
people who were so fragile that even a common cold would kill them.

Did you know that every day, many of them fall over on soft carpet with underlay,
and break their hip or arm?

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Bobby.

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #33 - Feb 6^th, 2026 at 2:36pm

TGD,
Quote:

Indeed: governments the world over are now experiencing democratic dysfunction because of the Catch-22 dilemma forced on them by Neoclassical 'balanced government budget' ideologues who think currency-ISSUING govt. budgets are like currency-USING household budgets.

Neoclassical Catch-22: governments must increase taxes to pay for essential public services, but govts. must reduce taxes to get elected.

It's all smoke and mirrors -
new taxes are always created,
taxes always go up.

TGD,
Quote:

?? Keating started the national superannuation scheme to ensure you do have funds to spend in retirement.

(It's an entirely unnecessary scheme because currency-issuing government can't 'run out' of money, they just need to ensure basic goods and services will be available for retirees.

So you are blaming retirees (past, present and future) for inflation...when it's total demand in the economy NOW which is causing inflation NOW.

Printing money creates runaway inflation -
it destroys all our savings.

Note: - you pay tax on interest earned in the bank
but you can't offset inflation.
It's a double tax.

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Bobby.

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #34 - Feb 6^th, 2026 at 8:51pm

Notice she never mentions her money printing?

https://www.abc.net.au/news/2026-02-06/rba-governor-refuses-to-blame-government-...

Bullock says government spending not sole factor pushing inflation higher as political fight heats up

4h ago

She listed:

low unemployment,
rising real incomes,
falling interest rates,
tax cuts,
and government spending

among the many contributors to the pick-up in inflation in the back half of 2025.

Who's to blame for inflation returning?
In Canberra today, Ms Bullock faced numerous questions from opposition Liberal MPs about the link between government spending and inflation.

Ms Bullock said it was not her place to comment on the reasonableness or otherwise of the government's fiscal policy.

But she said government spending was a component of "aggregate demand" (the total level of demand in the economy), and aggregate demand was running a little bit ahead of aggregate supply at the moment

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thegreatdivide

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #35 - Feb 7^th, 2026 at 10:34am

Bobby. wrote on Feb 6^th, 2026 at 2:06pm:

thegreatdivide wrote on Feb 6^th, 2026 at 12:34pm:

Bobby. wrote on Feb 6^th, 2026 at 11:33am:

TGD,

The RBA needs to stop printing money.

Even when the government has to "print" money, to keep people alive in a locked-down economy?

Yes - the economy shouldn't have been locked down over a cold -

99% of those who died were in aged care homes -
people who were so fragile that even a common cold would kill them.

Did you know that every day, many of them fall over on soft carpet with underlay,
and break their hip or arm?

No-one at the start of the pandemic knew how severe it actually was: healthy people were dying.

So, given the economy WAS locked down, the RBA HAD to 'print' money to fund essentials for locked down workers.

The idiotic bit was the printed money was accounted as debt to the Oz government, when it was created for free.

There is no inflation and no market competition in a locked-down economy.

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thegreatdivide

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #36 - Feb 7^th, 2026 at 10:59am

Bobby. wrote on Feb 6^th, 2026 at 2:36pm:

TGD,
Quote:

Indeed: governments the world over are now experiencing democratic dysfunction because of the Catch-22 dilemma forced on them by Neoclassical 'balanced government budget' ideologues who think currency-ISSUING govt. budgets are like currency-USING household budgets.

Neoclassical Catch-22: governments must increase taxes to pay for essential public services, but govts. must reduce taxes to get elected.

It's all smoke and mirrors -
new taxes are always created,
taxes always go up.

Did you miss the Catch -22?

How do YOU think governments should fund essential public services, to avoid anarchy in the streets?

Quote:

TGD,So you are blaming retirees (past, present and future) for inflation...when it's total demand in the economy NOW which is causing inflation NOW.

Printing money creates runaway inflation -
it destroys all our savings.

You are incapable of learning: all money is "printed", most of it in private banks.

The question is how to balance total supply and demand in the economy, to avoid inflation.

Try to understand that simple point, while governments around the world are failing to ensure provision of essential services for all, resulting in electors everywhere rejecting mainstream centre L-R politics.

Note: in the 50s and 60s, before Neoclassical "small government " ideology, 'conservative' Menzies was able to ensure housing for all, even at a time of high post-WW2 immigration.

Quote:

Note: - you pay tax on interest earned in the bank
but you can't offset inflation.
It's a double tax.

The problem is you are incapable of identifying the cause of the current economic dysfunction we are witnessing around the world.

"How ya (ie, govt.) gunna pay for it" (ie, essential living costs), while keeping inflation low?

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Sir Grappler Truth Teller OAM

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #37 - Feb 7^th, 2026 at 11:57am

'low unemployment' - regardless of the reality that much is part-time casual etc.... the classical view since the Keating times has been that when the peasants are getting too much of the pie, that creates inflation. Bullock Of The Ruling Elite has spoken - another dead-wit.

Total codswallop.

We all remember our 15% mortgage rates while the fat cats romped in.... the economy - in the case of the peasants their ability to access a living income for family - is used as the greatest form of social control over the masses - no different from any other mentally polluted government country.

Take back the farm!

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thegreatdivide

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #38 - Feb 7^th, 2026 at 1:29pm

Sir Grappler Truth Teller OAM wrote on Feb 7^th, 2026 at 11:57am:

'low unemployment' - regardless of the reality that much is part-time casual etc.... the classical view since the Keating times has been that when the peasants are getting too much of the pie, that creates inflation. Bullock Of The Ruling Elite has spoken - another dead-wit.

Total codswallop.

We all remember our 15% mortgage rates while the fat cats romped in.... the economy - in the case of the peasants their ability to access a living income for family - is used as the greatest form of social control over the masses - no different from any other mentally polluted government country.

Take back the farm!

We agree.

Now - how do you suggest we "take back the farm"?

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Bobby.

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #39 - Feb 7^th, 2026 at 1:42pm

TGD,
Quote:

Did you miss the Catch -22?

How do YOU think governments should fund essential public services, to avoid anarchy in the streets?

Stop creating fake public service jobs?
That would save a lot of money.
The public service has never been so large and bloated.
It's the only reason unemployment is not at a high level.
How about spending within the budget?
( I heard a rumor that 9 out of 10 jobs created were in the public service)

TGD,
Quote:

The question is how to balance total supply and demand in the economy, to avoid inflation.

That's a word salad. Roll Eyes

TGD,
Quote:

The problem is you are incapable of identifying the cause of the
current economic dysfunction we are witnessing around the world.

"How ya (ie, govt.) gunna pay for it" (ie, essential living costs), while keeping inflation low?

Just balance the budget and start paying off the debt.
Howard did it. Roll Eyes

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thegreatdivide Gold Member Offline Australian Politics<br /> Posts: 15231 Gender:	Re: Labor Must Not Leave Inflation Fight To RBA Reply #40 - Feb 7^th, 2026 at 2:08pm lee wrote on Feb 5^th, 2026 at 5:51pm: thegreatdivide wrote on Feb 5^th, 2026 at 1:45pm: the government's job is to ensure well-being for all. Explain to us your position on CGT discount again. CGT discount favours the asset rich.
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lee Gold Member Offline Australian Politics Posts: 20161 Gender:	Re: Labor Must Not Leave Inflation Fight To RBA Reply #41 - Feb 7^th, 2026 at 2:28pm thegreatdivide wrote on Feb 7^th, 2026 at 2:08pm: CGT discount favours the asset rich. Yep. As I thought. Just opinion. No substantiation.
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thegreatdivide

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #42 - Feb 7^th, 2026 at 2:45pm

Bobby. wrote on Feb 7^th, 2026 at 1:42pm:

TGD,
Quote:

Did you miss the Catch -22?

How do YOU think governments should fund essential public services, to avoid anarchy in the streets?

Stop creating fake public service jobs?

That would save a lot of money.

You are assuming the private sector would be able to replace those PS jobs, with above poverty wages.

Quote:

The public service has never been so large and bloated.[

Your error:

(google)

Based on historical data, the Australian public service (including federal, state, and local governments) has experienced fluctuations, with notable peaks in the late 1960s to mid-1970s and another significant rise in the early 2020s.

Historical Peak (Late 1960s): In 1968, the ratio of Australian Public Service (APS) officials to the population was 1:58, which is significantly higher than recent ratios.
Recent Surge (2022–2025): A major expansion in the public sector occurred post-COVID-19. By June 2025, there were nearly 2.6 million public sector employees across all levels of government, constituting roughly 18% of all employees in Australia.

Context on Ratios: As of 2025, the ratio was one APS official for every 138 Australians, which is lower than the 1968 peak of 1:58 but represents a sharp increase from 1:161 in 2023.

The recent expansion has been attributed to bringing previously outsourced work back into the public service and increasing staff to handle services like the NDIS and health.

...as the population increases and grows older.

Quote:

It's the only reason unemployment is not at a high level.

Correct: govt. wants to preside over full employment.

Quote:

How about spending within the budget?
( I heard a rumor that 9 out of 10 jobs created were in the public service)

Your rumour discounted above.

But Catch-22: how does govt. "spend within the budget" and deliver vital public services, while promising lower taxes to get elected?

Quote:

TGD,The question is how to balance total supply and demand in the economy, to avoid inflation.

That's a word salad. Roll Eyes

Simple English, which you apparently can't understand.

(google)

A major cause of inflation is when aggregate demand for goods and services exceeds aggregate supply

Do you understand those terms?

While excessive demand is a primary driver, modern inflation is often a mix of both excessive demand (demand-pull) and constrained supply (cost-push) inflation.

Do you understand those terms? Google will explain them for you.

Quote:

TGD"How ya (ie, govt.) gunna pay for it" (ie, essential living costs), while keeping inflation low?

Just balance the budget and start paying off the debt.
Howard did it. Roll Eyes

Your error - failure to note context:

(google)

The early stages of the mining boom significantly funded the Howard government (1996–2007), providing a massive revenue windfall that helped secure budget surpluses. Between 2004 and 2007, the boom added roughly $334 billion in revenue, with a large portion of this used for tax cuts and middle-class welfare rather than infrastructure investment.

And misguided policies like CGT discounts and NG, now coming home to roost.

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Bobby.

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #43 - Feb 7^th, 2026 at 3:01pm

TGD,
Quote:

Correct: govt. wants to preside over full employment.

The Labor Govt. just wants the unemployment to be low
so they have a better chance of being voted back in -
all with money printing and borrowed money - fake jobs.

The fact that not even your great children will be able to pay it back -
they will still be on the hook for it - before they are born -
doesn't seem to concern you or the average Aussie punter.

People should be employed in businesses that create profit -
from a proper business model -
not by borrowing or printing money.
How about business to value add to our commodities?
We could extract rare earth minerals from mining ore.
We could sell Uranium fuel rods instead of Yellowcake.
We could have factories that produce things -
we don't even make shoes here anymore -
we export leather instead. Roll Eyes

Google AI:

Yes, Australia is a significant global exporter of hides, skins, and leather,
with exports valued at roughly $598 million in 2021.
The industry mainly exports raw (wet-salted) bovine hides and sheepskins,
along with kangaroo and goat skins, primarily to China, Italy, and Vietnam.

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thegreatdivide

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Re: Labor Must Not Leave Inflation Fight To RBA
Reply #44 - Feb 7^th, 2026 at 3:03pm

lee wrote on Feb 7^th, 2026 at 2:28pm:

thegreatdivide wrote on Feb 7^th, 2026 at 2:08pm:

CGT discount favours the asset rich.

Yep. As I thought. Just opinion. No substantiation. Roll Eyes

(google)

Based on recent analysis in Australia, the 50% Capital Gains Tax (CGT) discount is heavily criticized for disproportionately benefiting wealthier individuals, thereby worsening wealth inequality and contributing to housing unaffordability for lower-income earners.

How It Impacts the "Poor" (Low/Middle Income & Renters)

Housing Inaccessibility:

The tax concession encourages speculative investment in housing, which drives up property prices, making it harder for first-home buyers to enter the market.

Increased Rents:

By encouraging investors to "hoard" property, the system reduces the availability of homes for owner-occupiers, keeping more people in the rental market, which can drive up rents.

Inequality of Labor vs. Capital:

The system allows individuals to pay lower taxes on profits from selling investments compared to taxes on income earned from working, widening the gap between wealthy asset owners and wage earners.

Lower Benefits for Lower Earners:

People on lower incomes who make infrequent or smaller capital gains see very little benefit compared to those with large investment portfolios.

Meanwhile, the counter-argument:

Investment Incentive:

The Property Council of Australia argues that reducing the discount could reduce housing supply by lowering incentives for investment, which could increase rents further.

....Yes, they would argue that, being "small government' ideologues who were responsible for governments abandoning public housing.

Conclusion:

The consensus from recent economic and social policy research is that the current 50% CGT discount is highly regressive, with benefits overwhelmingly flowing to the top 10% of earners while contributing to a housing system that makes homeownership difficult for younger and lower-income Australians.

My "opinion"?

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