The Buck Stops Here: The RBA (Reckless Bank of Australia)

From the One Nation economic forum – our Aussie Economist

As we reported ‘without fear or favour’ on June 2nd here:

“The country is going troppo over the fact the Reserve Bank Governor presented himself to Senate Estimates[.] … [T]he RBA Governor wouldn’t even present himself to estimates were it not for the work of Senator Malcolm Roberts. … Of course, the mainstream media just reported that Roberts’ questions were quirky, and boldly stated the RBA governor would never do such a thing as ‘print money’.”

In fact, ‘printing money’ is not only a “thing” but the RBA’s main “thing”. As investment expert and Queenslander Dr Chris Leithner wrote in his 2011 book The Evil Princes of Martin Place:

“Central banks don’t fight inflation: they manufacture and maintain it. These days, only the actions of commercial and central banks can create inflation. The legislation and regulations that underlie the banking system inflate the boom that inevitably busts.”

Of course, the fake news MSM (mainstream media) would probably dismiss Dr Leithner, as they often do Senator Roberts, as just some ‘tinfoil hat-wearing conspiracy theorist’. OK, then, how about former Australian Treasurer Peter Costello? He was quoted here in 2017 as saying:

“Sometimes I wonder whether those running the banks realise how important the government is to their business. Who benefits from this tightly regulated enterprise? Well, the government does, the shareholders of course, and the senior executives employed on handsome salaries to keep their operation ticking over. It’s the consumer that is feeling unloved.”

The MSM might explain this away as having nothing to do with an alleged money printing by the RBA and Big Banks. OK, then how about Nobel laureate economist Milton Friedman? He did the most comprehensive study ever on this in 1963, co-authored with Anna J Schwartz. He restated the key finding in 1994 here that:

“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”

Never ever underestimate the MSM’s willingness and ability, especially in the 2020s, to not only systematically avoid reality but to serially attack it. That includes not just culture, history and science but also economics. Thus, they may dismiss Friedman as a right-wing ideologue. But what about left-wing LGBTQ+ economist Lord John Maynard Keynes? He wrote here in 1933:

“[T]he best way to destroy the Capitalist System was to debauch the currency. By continuing inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; while the process impoverishes many, it enriches some.”

The MSM could counter with: this may have been true or is even still true overseas, but not in the ABC-enlightened Australia of the 21st century, and certainly not under the post-modern secular gods of LTG (Labor, Teals and Greens). But what about the RBA’s own 1959 legislation? It sets out that:

“26(a) [The RBA] is the central bank of Australia; 34(2) Australian notes shall be printed by, or under the authority of, the [RBA]. 36(1) Australian notes are a legal tender throughout Australia. 79 The [RBA] is not liable to taxation[.] 79A(9) [The RBA] is…[more-or-less] exempt…[from] the Freedom of Information Act 1982.”

That same legislation, despite the overly broad powers granted to the RBA under section 8, fortunately provides the following guardrails under section 10(2):

“It is the duty of the [RBA], within the limits of its powers, to ensure that the monetary and banking policy…is directed to the greatest advantage of the people of Australia and that [these] powers…are exercised in such a manner as, in the opinion of the [RBA], will best contribute to: (a) the stability of the currency of Australia; (b) the maintenance of full employment in Australia; and (c) the economic prosperity and welfare of the people of Australia.”

They say ‘a picture is worth a thousand words’. Exhibit A below shows currency stability and Exhibit B further below shows prosperity and welfare. Exhibit C furtherest below shows the money printing by our central bank (the RBA monopoly) along with those under their authority (the Big Banks cartel). In sum: Exhibits A and B shows effects (in terms of the Aussie dollar, debt and ‘inflation’); and Exhibit C shows causes (in terms of Aussie M1 and M3 money supplies). So how would you say the RBA is doing?

Source A:  

Source B1:  

Source B2:  

Source C1:  

Source C2: