Australia is Structurally Bankrupt. Unless You’ve Been Living on Mars, You Shouldn’t be Surprised by the Higher Inflation Print Today
By Rational Aussie
Australia is structurally bankrupt.
Unless you’ve been living on Mars, you shouldn’t be surprised by the higher inflation print today.
The government has been busy with expansionary fiscal policy settings whilst the RBA has adopted a weak contractionary stance.
In other words, the government wants to pretend it can import infinite immigrants, shit subsidies out their ass, implement fake jobs programs like the NDIS, and give tax cuts, whilst expecting no consequences.
They tell you that these things help address inflation, when really they add fuel to the fire.
Meanwhile, the RBA has made a piss weak attempt at raising rates to solve the issue.
Too scared of nuking their own property portfolios, they cower in the corner with words as vague as a consultant pitching a fresh deck to a client: ‘to raise or not to raise, that is the question’.
Both the RBA and the government have failed in their duties to the Australian people.
The government should have slashed expenditure and immigration enormously, and the RBA should have raised rates much higher, quicker.
Australia now has a two speed economy.
The RBA printed so much fake money during the pandemic, that people at the top end of town are rolling in it.
They have money spewing out of their pockets when they roll over in bed.
Their property portfolios are pumping and their stonks are ripping.
They couldn’t be happier.
Even better if they’ve paid off their mortgage – these people would love more rate rises (‘higher interest rates on savings, yes please’).
Meanwhile your average punter is fucked.
Joe McPoor is either paying ridiculous rates on a fat mortgage for an overpriced shitbox, or absurd rent on a human filing cabinet that would make even a dog distraught.
Joe McPoor is producing real things in the economy via his job.
And he is being punished for it.
Whilst Mick McMansion without a mortgage is being rewarded for being a total degenerate gambler whose only skill is being born 20 years before everyone else.
This is what happens when you turn the entire economy into a financialised Ponzi scheme where all that matters is how much capital you have to deploy into assets.
Instead of ending the gravy train of free money, both the government and the RBA have doubled down on it and tried to kick the can further down the road.
They have now run out of road and are staring at the ground.
And it has a big fat hole in it.
Because in the limit, you have no one producing real value and everyone looking to extract it.
Welcome to the upside down economy.
Welcome to Australia.
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Original source: https://x.com/rationalaussie/status/1805899122282831901