Category Archives: Reserve Bank

Midnight arrest of Reserve Bank protestor

From Sydney Criminal Lawyers

UNSW SRC education officer Cherish Kuehlmann had four NSW police officers bash on the front door of her Eastlakes apartment at midnight last Saturday and arrest her in relation to a housing crisis protest directed at major banks in Sydney’s Martin Place the day prior.

Kuehlmann considers the arrest was staged in such a dramatic manner as to cause the most impact in sending a message to those contemplating similar actions, which, taken on the back of the oppressive crackdown on protest in this state over the last 12 months, sounds about right.

This is especially so, the uni student advises, because police officers present at the nonviolent demonstration calling out soaring rents and mortgages triggered by interest rate rises, were speaking with her after the protest, so any transgression made could have been dealt with then.

Last Friday’s housing rally saw university students occupying the foyer of the Commonwealth Bank in Martin Place and the curtilage of the Reserve Bank of Australia on Macquarie Street. And Kuehlmann was arrested about 9 hours later out the front of her suburban home.

The war on protest

For the crime of standing on the Reserve Bank curtilage and calling for social justice, Kuehlmann has been charged with aggravated trespass, contrary to section 4B of the Inclosed Lands Protection Act 1901 (NSW), which carries a maximum fine of $5,500 when non-agricultural land is involved.

This offence was enacted by the Baird government in 2016. Designed to counter activists protesting against fossil fuel facilities, it saw the penalty applying increased tenfold, and it was then beefed up in 2019, so as to target animal rights activists staging actions against agribusiness with prison time.

As is the habit of police these days, Kuehlmann had to agree to extreme bail conditions, including that she not enter within a 2 kilometre radius of Sydney Town Hall, in exchange for being released from the Day Street Police Station lockup after spending four early hours of Saturday morning in a cell.

Indeed, the Perrottet government has been waging a campaign against climate protests, which commenced last March, when it passed severe laws to stamp out unauthorised disruptive actions and established a police unit targeting them, which Kuehlmann’s arrest shares all the hallmarks of.

Kuehlmann considers the arrest was staged in such a dramatic manner as to cause the most impact in sending a message to those contemplating similar actions, which, taken on the back of the oppressive crackdown on protest in this state over the last 12 months, sounds about right.

This is especially so, the uni student advises, because police officers present at the nonviolent demonstration calling out soaring rents and mortgages triggered by interest rate rises, were speaking with her after the protest, so any transgression made could have been dealt with then.

Last Friday’s housing rally saw university students occupying the foyer of the Commonwealth Bank in Martin Place and the curtilage of the Reserve Bank of Australia on Macquarie Street. And Kuehlmann was arrested about 9 hours later out the front of her suburban home.

Editor:

The Reserve Bank is a foreign ADI. A “foreign ADI” means a body corporate that:

(a) is a foreign corporation within the meaning of paragraph 51(xx) of the Constitution; and

(b) is authorised to carry on banking business in a foreign country; and

(c) has been granted an authority under section 9 to carry on banking business in Australia.

http://www.apra.gov.au/adi/Publications/Pages/Letter-to-ADIs-Operation-of-foreign-bank

CBDC is no longer a question of technological feasibility, but is it desirable?

The Reserve Bank is collaborating with the Digital Finance Cooperative Research Centre (DFCRC) on a research project to explore use cases for a central bank digital currency (CBDC) in Australia.

Considerable research has been undertaken by central banks, including the Reserve Bank, into the feasibility and possible technical design of CBDC, in particular exploring the potential use of new technologies such as distributed ledger technology. A question that has received less attention to date, especially in countries like Australia that already have relatively modern and well-functioning payment and settlement systems, is the use cases for a CBDC and the potential economic benefits of introducing one.

The project with the DFCRC will help address this gap by focusing on innovative use cases and business models that could be supported by the issuance of a CBDC. The project will also be an opportunity to further understanding of some of the technological, legal and regulatory considerations associated with a CBDC.

The project, which is expected to take about a year to complete, will involve the development of a limited-scale CBDC pilot that will operate in a ring-fenced environment for a period of time and is intended to involve a pilot CBDC that is a real claim on the Reserve Bank. Interested industry participants will be invited to develop specific use cases that demonstrate how a CBDC could be used to provide innovative and value-added payment and settlement services to households and businesses. The Bank and the DFCRC will select a range of different use cases to participate in the pilot, based on their potential to provide insights into the possible benefits of a CBDC. A report on the findings from the project, including an assessment of the various use cases developed, will be published at the conclusion. The findings will contribute to ongoing research into the desirability and feasibility of a CBDC in Australia.

The Australian Treasury is participating as a member of the steering committee for the project, as part of its joint work with the Reserve Bank on exploring the viability of a CBDC in Australia.

A paper will be published in the next few months that will explain the objectives and approach of the project in more detail and how industry participants will be able to engage.

‘This project is an important next step in our research on CBDC. We are looking forward to engaging with a wide range of industry participants to better understand the potential benefits a CBDC could bring to Australia,’ said Michele Bullock, Deputy Governor of the Reserve Bank.

Dr Andreas Furche, CEO of the DFCRC, said ‘CBDC is no longer a question of technological feasibility. The key research questions now are what economic benefits a CBDC could enable, and how it could be designed to maximise those benefits.’

About the Digital Finance Cooperative Research Centre (DFCRC)

The DFCRC is a 10-year, $180 million research program funded by industry partners, universities and the Australian Government, through the Cooperative Research Centres Program. The DFCRC’s mission is to bring together stakeholders in the finance industry, academia and regulatory sectors to develop and harness the opportunities arising from the next transformation of financial markets – the digitisation of assets that can be traded and exchanged directly and in real-time on digital platforms. The Reserve Bank is an industry partner of the DFCRC, and is using its involvement in the DFCRC to support work on its strategic focus area on supporting the evolution of payments, including through research on CBDC.

Enquiries: Reserve Bank of Australia

External Communications
Secretary’s Department
Reserve Bank of Australia
SYDNEY

Phone: +61 2 9551 9720
Email: rbainfo@rba.gov.au

Enquiries: Digital Finance Cooperative Research Centre

Steph Manefield
Chief Operating Officer
Digital Finance Cooperative Research Centre
SYDNEY

Phone: +61 478 220 277
Email: steph@dfcrc.com

Revelation tells it all

Letter to the Editor

In response to the introduction of CBDC ‘Paul Hogan’ writes:

“And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:

And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.

Here is wisdom. Let him that hath understanding count the number of the beast: for it is the number of a man; and his number is Six hundred threescore and six.

Revelation 13-17

666 means the Carbon, containing 6 protons, 6 neurons, and 6 electrons.
The Beast is not NWO or WHO, the Beast is the Man – ignorant, selfish, greedy, wicked, and fearful.”

CBDC is on the way as banks cancel cheque accounts

Digital currency is well on the way for Australians while the Reserve Bank continues with its implementation and banks can cheque accounts in preparation to impound all paper money as it comes over the counter.

This week Queensland-based bank Suncorp warned its customers with cheque accounts they would be deactivated in January 2023.

Suncorp also advised it was cancelling some credit card accounts because “this service is no longer available.”

As the dummies pay at the check out with their phones or cards Klaus Schwab and the WEF are salivating at the immense control banks and governments will soon have over the people as every transaction is meticulously recorded.

The Australian Taxation Office is expecting a bonanza in extra revenue it believes electronic transaction tracking will deliver.

The treacherous LNP/ALP duopoly is rushing forth to implement the WEF’s digital currency model to keep control over people’s lives as the Covid scamdemic is fast waning and a few souls finally wake up when their jabbed friends and family members suddenly drop dead.

Commerce will suffer immensely when the cost of digital implementation hits small business and families who will be forced to buy card readers for fruit and vegetable stalls, garage sales, local markets and other every day transactions.

When the internet is shut down and there is no legal tender in circulation many people, including remote indigenous communities will starve. Barter is desirable but not the answer.

Cairns News advises total rejection of the cashless society coveted by the dodgy duopoly. Ring your federal member’s office and tell them you won’t comply.

Will you take the ‘mark of the beast?’

Reserve Bank well on way with CBDC for sheeples

by Lyndesy Symonds

This is Central Bank Digital Currency (CBDC) and microchip creep. The integration of all personal data will be on that chip and the sheeple will be micromanaged through the chip in every aspect of our lives.

Ron Ray of Mother & Refuge of the End Times has just posted a video on this timely subject.
Digitalisation of Currencies & of You? CBDC Tracker shows us inching towards prophetic fulfillment
https://www.youtube.com/watch?v=KEyfM8Zjap4

The atheists / agnostics among us will not readily or perhaps never credit this, I know, but Heaven has been lecturing us on this subject for sometime. Here are the urgent messages over the past decade on this subject together with promises of fidelity and care for those who will stand against this seizure of the soul and alleigance to God.
https://www.countdowntothekingdom.com/why-we-cannot-take-the-chip/

Here is the CBDC tracker for the world rollout. As you will see all the Communist Bloc [BRICSA] nations are out of R&D and into implementation.
https://www.atlanticcouncil.org/cbdctracker/

Australia is at present in the Research phase.

Tighten your belts the Reserve Bank says it is broke thanks to Covid scamdemic and note printing

by Alison Ryan

Australia’s Central Bank Says It Is Bust, Real Money new, Sep 21, 2022.
After the Australian fiscal year ended in June, the Reserve Bank of Australia marked its bond holdings to market – wiping out all its reserves.

The central bank of Australia on Wednesday made the astonishing admission that it is, basically, bust. Its entire equity has been wiped out by pandemic-related bond buying.

Of course, the Reserve Bank of Australia is a central bank, and can print money. So it can work its way out of a situation that would bankrupt a conventional bank or company.

Still, as the U.S. Federal Reserve meets today on interest rates, it’s an interesting insight into the challenges other central bankers face as they attempt to reconcile Covid stimulus with post-Covid inflation and economic emergence.

The RBA began its bond-purchase program in November 2020 as a second stimulus package in response to the pandemic. The first round of measures saw it slash rates to record lows, and set up a term funding facility offering cheap three-year funding to banks. For the bond buying, the central bank bought Australian government bonds and semi-government securities in the secondary market to lower interest rates on bonds maturing between five and 10 years out.

The program was extended, and extended, and extended yet again. Ultimately, the RBA bought A$281 billion (US$188 billion) in national, state and territory government bonds.

Now the bill has come due.

The RBA will announce its full-year results for the Australian fiscal year through June 30 in a month or so. But they won’t be pretty.

The central bank has had to mark the value of its holdings to market, resulting in a A$44.9 billion (US$30.0 billion) valuation loss. Offset by A$8.2 billion (US$5.5 billion) in underlying earnings from the central bank’s holdings, and it is posting a net loss of A$36.7 billion (US$24.5 billion).

That has exhausted the bank’s A$15.4 billion reserve fund and A$8.4 billion in other reserves, and then some. So the RBA is in negative equity to the tune of A$12.4 billion (US$8.3 billion).

“If any commercial entity had negative equity, assets would be insufficient to meet liabilities, and therefore the company would not be a going concern,” RBA Deputy Governor Michele Bullock explains in outlining the central bank’s situation. “But central banks are not like commercial entities.”

The RBA has a government guarantee against its liabilities, meaning “there are no going concern issues with a central bank in a country like Australia,” she says by way of reassurance. And of course the central bank can simply print more money, so “the Bank can continue to meet its obligations as they become due and so is not insolvent. The negative equity position will, therefore, not affect the ability of the Reserve Bank to do its job.”

A license to print money to get out of that kind of problem is never, however, going to be good news for your currency. And indeed, the Aussie dollar has lost 13.6% of its value against the U.S. dollar since early April. Look back 18 months, and the decline in what some Aussies joking call the “Pacific peso” is 19.5%.

It’s a far cry, with US$1 now buying you A$1.50, from 2013, when the Aussie dollar briefly rose above parity to become stronger than its U.S. counterpart. However, the Australian government was forced to inject cash into the central bank in 2013 because it had suffered losses on its foreign-currency reserves. The RBA notes it’s not requesting any cash injection now.

With interest rates rising in Australia, the RBA is in the unenviable position of having to pay out higher interest on its liabilities than it is able to earn on the bonds and other assets it has been buying. “In other words, underlying earnings are negative,” Bullock says. “It is difficult to be precise about how long this situation will last or how big these negative earnings will be.”

On the plus side, having marked to market at June 30, the central bank finds that its bond holdings are now valued below their face value at maturity. As a result, it should be making capital gains as the bonds come due. The RBA is now going to run its bond portfolio back down.

The RBA slashed rates to a record low of 0.1% in November 2020. The Aussie central bank has now hiked three times, bringing the current interest rate to 2.35% as of its September 6 meeting. It is next due to meet on rates on October 4.

As of the end of the June quarter, the RBA held A$356 billion (US$238 billion) in Australian government bonds, and also has another A$188 billion (US$125 billion) in assets connected to the term funding facility. Across the entire government, the entity that issues the Aussie government’s debt – the Australian Office of Financial Management – will be reporting a significant gain on the liabilities it has issued, equivalent to the losses that the RBA has had to write down.

The RBA notes that other central banks would be in a similar position but use different accounting methods. The Bank of England and the Reserve Bank of New Zealand both have an indemnity from the government on any losses. So their governments would essentially bail them out, something the RBA stresses it is not asking the Australian government to do.

However, the RBA typically contributes its profits to the government coffers as a dividend. The government likely should expect a hole in its budget where that dividend contribution used to be, for “the next few years,” Bullock says. The last bonds mature in 2033.

Similarly, the Swiss National Bank reported a first-half loss of 95.2 billion Swiss francs (US$98.7 billion), its largest since the central bank was set up in 1907. Falling bond prices and the appreciation in the Swiss franc ate into its huge foreign-currency holdings, but like the RBA the loss is on paper until the bonds mature.

The bottom line, Bullock says, is that central banks had to spend their way out of the pandemic crisis if their economies were going to stay afloat. In that sense, the RBA’s bond buying “broadly achieved its aims,” she concludes.

https://realmoney.thestreet.com/investing/global-equity/australia-s-central-bank-says-it-is-bust-16103021

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