Inflation and RBA Interest Hike and Inflation Rise and Monetary Policy
First of all, Interest Rate Hike is a Tax on the poor – on all the People Paying Mortgages and Credit Card Loans and Personal Loans and all other Loans – it keeps them poor.
Second, when Interest Rate rises, Everybody raise their prices HAPPILY, from the Suppliers to Farms, to the Trucks that supply to the Farms and Carry back the Goods, from Industries to Supermarkets who are very HAPPY to increase further prices.
And Energy suppliers and Fuel suppliers all join hands to increase the prices.
And Inflation goes high again unabated.
It is sad to note that message from RBA is ‘RBA expects inflation to hit 7 per cent by December, 2022’ paves the way to raise the interest Hike.
This is not Acceptable.
Let us analyse the sequence of events of RBA Interest Rate Hikes.
Before Interest Hike
1 Inflation is not affected
2 Mortgage Payments, Credit Card and other Loans Payments not affected.
3. Take home pay not Affected as mortgage and Loan payment not increased.
4. LIFETIME OF THE MORTGAGE and Other loans are NOT AFFECTED.
5 QUALITY OF FAMILY LIFE NOT AFFECTED. 6 Poor people with Loans LOSE money on Hiked Interest.
|After Interest Hike |
1 Contributes to Inflation
2 Mortgage Payments, Credit Card and other Loans Payments Increases
3 Take home pay Affected drastically depending on the RBA Interest Hikes 4. MOST OF ALL LIFETIME OF THE MORTGAGE and Other Loans INCREASES FOR EACH 0.25 % OF INTEREST RATES HIKE.
5 QUALITY OF FAMILY LIFE DRASTICALLY REDUCED.
6 WEALTHY people EARN interest MONEY on Hiked Interest. This is JUST OPPOSITE of what RBA Interest Hike INTEND to Achieve, in the FIRST PLACE.
According to Google, Monetary policy is a Central Bank’s (RBA) actions and communications that manage the Money Supply.
I REPEAT below, item 6 above.
When interest goes up, Money INCOMEgoes up to People who have Money in Bank (This is JUST OPPOSITE of what RBA Interest Hike INTEND to Achieve, REDUCE MONEY Supply, in the FIRST PLACE), while Money Supply goes down from all who have Mortgages and all type of Loans – that is From YOUR POCKET (PAYING INTEREST To People who ALREADY have SURPLUS Money in Bank).
It’s like Robbing Peter to pay Paul.
THIS IS UNFAIR.
There is a Better way to Manage Monetary Policy which is non-Inflationary, BUT FAIR To all Australians – From GG, PM, Ministers and MPs, All State Government Public Servants, All the CEOs and every person on Payroll, contributing to monetary policy.
Therefore, All Employed and Receiving Salary and Others earning Living income from other sources, should Contribute to the Monetary policy.
This is done by a Levy decided by a Percentage on the take home pay or Income, after Tax.
This will be Fair to all Australians and NON INFLATIONARY – while Reducing Money supply.
This Levy Will NOT contribute to INFLATION and NOBODY can Hike the Consumer Price.
When the Inflation Goes Down, this Levy will be Reduced or Eliminated depending on the need.
These RBA INTEREST Hikes or Levy Recommended by me are:
- PAID as AFTER TAX.
- THESE DEDUCTIONS DO NOT BELONG TO RBA NOR TO THE GOVERNMENT because they Belong to you, O People.
- I Repeat, Whatever the method is used whether A Levy or RBA Interest Hike, these HARD-EARNED Money deductions BELONG to you, the people PAYING THEM. Because the interest Earned by the WEALTHY goes to their POCKET and NOT TO RBA NOR TO THE GOVERNMENT.
- THEREFORE, THESE DEDUCTIONS SHOULD BE ADDED TO SUPER, or Another Savings AND MAY BE ACCESSED BY YOU IN THE FUTURE FOR:
- CHILDREN’S EDUCATION (for future of the Country)
- OR SOLAR PANELS FOR THE HOUSES (Save the Environment)
- OR FAMILY HOLIDAYS (Boost Health and Family Bonding)
- OR USED FOR REPAYMENT OF BUSINESS LOANS (Promotes more people to start Small Businesses and more employment)
- OR INVEST WISELY IN SHARE MARKET (For future Prosperity of the Family)
- OR IN ANY NON INFLATIONY VENTURES Belonging to the People who pay then!!
The ball is in your court, O People.
Do not be like the “Emperor without Clothes”.
Think about it and Take action, talk to your local MP.
Remember, if you are doing any direct payment because of RBA interest Rate Hike, then you are a loser. MONETARY POLICY MUST BE FAIR TO ALL Countrymen.
While others who have no Loans and have wealth are EARNING interest on their Capital AND LAUGHING ALL THE WAY TO THE BANK.
To be FAIR To all COMMUNITY, CHARGING A LEVY TO ALL EMPLOYED and others EARNING TAXABLE INCOME is the Best way TO MANAGE MONETARY POLICY AND ADD THIS LEVY Deductions TO THE SUPER as per ITEM 4 ABOVE, to be used later.
Contributed by Chrysostom Arulnayagam
Ps: This is my opinion sent to you IN GOOD FAITH to think about it. If you agree, then please do something about. If you do not agree, please just ignore it. Thanks for Reading.
PS2: This document will be sent to all Unions first, Then to Unis, Schools, Councils, Hospitals, Then to State Governments and finally to Federal Parliaments and Governors and GG.
PS3: I am an Aged Pensioner, retired Engineer and hold Post Graduate Diploma in Computer Science. My pension is about AU$700 a fortnight which is a Beggar’s wages. Salary of RBA Governor may be about $1,000,000 (1 Million Dollars), Deputy Governor about $600,000 and Assistant Governor, Business Services $500,000 totalling more than $2,000,000 (2 Million Dollars).
I may do the similar job of RBA Governors for the same Aged Pension of $700.
And ask them for the Inflation rate for the month and I will be happily increase the LEVY rate if the Government agrees to my levy and saving these deductions to your Savings to be used as per Item 4 above.