AUSTRALIA'S DISASTROUS DECADE - the triple whammy of RBA failures

Australia is about to have an avalanche of inquiries, commissions, reviews and talkfests to trawl through a disastrous decade of governance failures in the triple-T of truth, trust and transparency.

We have endured a disastrous decade of turntable governments that have reduced real wages, locked- down the nation and denied accountability for the nation dropping from second to tenth in the world's productivity index.

More than a million Australians are still out looking for work while employers, unions and bureaucrats plan to get together next week to work out how they can leave more people behind with increasing fuel, fruit and veggie prices rising and mortgage payments becoming the next housing crisis.

We're looking at RoboDebt, Veteran's Suicide, Aged Care, National Natural Disasters, Banking, Superannuation, Financial Services, Institutional Responses to Child Sexual Abuse, Protection of Children in the Northern Territory and yet to be determined review of the former PMs Ministerial Secrecy deal after an $18 million gift to one of the GG's favourite charities. And then there's the review of the Reserve Bank of Australia.

Collectively this represents a catastrophic collapse in community confidence in the quality of Australian governance.

The prize must go to the Reserve Bank Board, which had only three things to do, and failed with all three and is currently crashing mortgage confidence, increasing living costs and returning to its bad habit of increasing unemployment levels to prop up its AAA financial grades.

First - the stability of the currency of Australia - <FAIL>

Second - the maintenance of full employment in Australia - <FAIL>

Third - the economic prosperity and welfare of the people of Australia - <FAIL>

They have conspired to lower real wages to maintain their credit ratings, forgotten the "People Left Behind" who are still looking for work and continue to claim that high pandemic savings on average mean that everyone is able to cope with their focus on financial stability at the expense of full employment.

For two decades of disastrous destruction of the aspirations of Morrison's Quiet Australians, the RBA has set official interest rates with an eye to keeping currency stable and inflation between 2% and 3% by dumping down on real wages and increasing mining company profits - with spectacular failure to raise even SME profitability or to control the spiralling cost of living for low-income households doing it increasingly tough.

As the Centre Independent Studies Analysis Paper 36 says of the RBA Board " Arguments are subject to little scrutiny, either internally or externally. More fundamentally, the RBA has a culture that places a low priority on getting the answers right... the failures were expected, not accidental and preceded the Covid-19 pandemic."

An analysis of the mental characteristics of the bureaucrats in the Canberra bubble ( See The Poverty of Socio-Economic Explanation-scrip.org journal article) shows that they don't match or identify with Albanese's "people left behind". What's worse is that these elites only talk to LMIs - like-minded individuals who are equally out of touch.

The RBA Governor, Philip Lowe shows no interest in getting people into work saying "For some time, the Board has been seeking to balance the benefits of stimulatory policy with the medium-term risks associated with high and rising levels of household debt."

Sean Wright writes "As Australia enjoyed a near 30-year stretch of unbroken economic growth, the bank and its policy settings were often overlooked by politicians of all persuasions looking to take credit."

Philip Lowe is quite clear that this is a deliberate destructive, disastrous consequence of admittedly failed policies, telling the politicians " There will be insolvencies. There will be bankruptcies. There will be some businesses that will not recover. That's the harsh reality of an economic downturn that's the worst in a hundred years", but not one promise to address a million jobseekers who are supposed to pay more for everything to help him drag down inflationary pressures.

Even former Liberal Finance director Matheus Cormann, and now head of the OECD, is recommending that the bank needs to be reviewed. The Organisation for Economic Cooperation said as early as last September that the RBA's "overly tight " monetary policy" - before slashing rates during the pandemic - had contributed to undershooting the 2-3 per cent inflation target that is now being restored at the expense of the lowest income households in supposedly post-Covid Australia.

Watch the Chalmer's Jobs Summit to see how the invited elites find ways to cut more deals without addressing any of the three objectives set out for the peace, order and good government of everyone, not just those with a place at the self-serving tableau.

Treasurer Jim Chalmers is preparing to take the Albanese cabinet a 'get-out-of-jail" card review of the bank and says he still has a "mountain of respect" for Dr Lowe and that he wants to ensure that the RBA remains independent. He too shows no sign of accepting that the lowest income households are supposed to be propping up the third tax payout to those in the highest income bracket - including the bureaucrats that are pushing these policies.