RESERVE BANK HYSTERIA

The colossal nonsense being uttered in and written by the media and supported by the PM and Treasurer and Finance Minister, is enough to make a Ist year Macro Economics student puke - at the appalling pursuit of ignorant populist support by our pollies. It is sufficient to make most educated citizens cringe in shame.

We have more university graduates now than at any time in our history. Hopefully during their days and nights there, they achieved some critical thinking and analytical ability. Surely they must be viewing the verbal and written garbage by both sides of politics, but particularly by a desperate populist government - with horror!

Our world class Reserve Bank is an independent Commonwealth authority, legislated by the Reserve Bank Act 1959. The Treasurer or anyone else cannot ring up the RB Governor and simplistically tell him how to conduct the corporate affairs of the bank. Despite the wolverine howling of the media and the selfish stirrings of the ignorant electorate mob.  If there is a sufficient disagreement between the RB Governor and the Treasurer, then this is undertaken in accordance with Section 11 of the RBA Act. Only under legislative due process can the RB be instructed to bend to the government's will.