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APRA deliberately inflated housing bubble in Australia to increase profit for banks

by Alison Ryan

The Reserve Bank’s dramatic interest rate decision this week appears to ignore the economic reality facing many households. In announcing a steep 0.5 per cent rise in the official cash rate, the RBA Governor Philip Lowe made the following claims: “Inflation is expected to increase further, but then decline back towards the 2-3 per cent range next year. … The Australian economy is resilient… Household and business balance sheets are generally in good shape… One source of uncertainty about the economic outlook is how household spending evolves, given the increasing pressure on Australian households’ budgets from higher inflation. The household saving rate also remains higher than it was before the pandemic and many households have built up large financial buffers.” (Emphasis added.)

RBA Governor Philip Lowe

(To see how much this statement is worth, consider that in his November and December 2021 statements on monetary policy, Lowe had given a strong indication that interest rates wouldn’t rise until after 2023; based on that, many Australians borrowed money and have now been smashed by two rises that have taken the cash rate from 0.10 per cent to 0.85 per cent.)

The RBA is one of the institutions, along with successive governments and the Australian Prudential Regulation Authority (APRA), which deliberately inflated a housing bubble in Australia from the year 2000 onwards. To boost the profits of the banks, and to cover up the effects of shrinking manufacturing and rural industries, they encouraged the banks to focus their lending on housing at the expense of all else—especially housing affordability.

One of the measures of housing affordability is so-called mortgage stress, which is a measure the RBA has long ignored. It’s hanging its decision on the claim that many households have built up large financial buffers, but Digital Finance Analytics’ Martin North reports from his comprehensive survey of more than 50,000 households—the biggest survey in Australia—that more than 43 per cent of households, 1.5 million households in total, were mortgage stressed before the recent rate rises. As North explained to Channel Nine’s 8 June Today program, these households were already foregoing expenses such as dental, children’s clothes, etc., to prioritise paying their mortgages. “If interest rates go up another one per cent, that’s a 15 per cent increase in the monthly repayment on the mortgage, so we’re going to see more people really struggling”, he warned.

We’ve seen this disconnect between financial reality and the delusions of financial authorities before—at the time of the 2008 global financial crisis in the United States. US authorities denied the danger of the financial derivatives banks had written on their mortgages; consequently, their decision to let Lehman Brothers collapse set off a chain reaction in its derivatives contracts that blew up the financial world.

In the 2008 GFC, the trigger was the rise in mortgage defaults that started in 2007. In Australia in 2007, a secret APRA report predicted a spike in mortgage defaults to 7 per cent of mortgages, which would trigger an Australian banking crisis and recession; only the massive bank bailouts and housing subsidies of 2008 averted that scenario.

Fourteen years later, the bubble is bigger, households have much more debt, inflation is rampant, and, globally, insiders like JPMorgan Chase CEO Jamie Dimon are warning that an economic “hurricane is right out there, down the road, coming our way”. If the RBA has miscalculated, it may decide in a few months to reverse interest rates, but it may be too late—it may already have triggered an unstoppable chain reaction to a crash of Australia’s debt-laden financial system. The RBA’s latest data shows Australian banks have almost $44 trillion in exposure to financial derivatives— the greatest danger to Australia’s banks and their customers.

RBA ignores the canary in the mine / local councils need for investment

Reserve Bank created credit for business Jobkeeper – never borrowed

ABC Broadcast April 6, 2020

Reserve Bank creating money out of thin air to prevent economic disaster – PM – ABC Radio 

Here it is folks the official admission about credit creation we have been waiting to hear for 30 years. The former Reserve Bank Governor said in an ABC Radio interview the Reserve Bank added extra noughts into the computer and bingo! the Federal Government produced $330B two weeks ago under Jobkeeper to pay the wages of small business employees across the nation who have been displaced by ‘Coronavirus’.

Unfortunately a reported $150B went to the banks who have been creating their own credit since banks first started.

Reserve Bank of Australia

Better still the bail-out was created interest-free but Jewish Treasurer Josh Frydenberg in good old ‘long nosed’ style added an interest component ensuring it is paid back. We wish him good luck there.

Now this worst-kept secret of the banksters has hit the airwaves. The cat is out of the bag-officially.

Following on from this fiscal revelation an honest government would continue creating national credit for the benefit of nation building infrastructure at 0.05 per cent interest rate to cover the cost of bureaucracy if granting credit to private enterprise. Federal and State government owned new infrastructure building should be exempt from interest.

In essence this credit, backed by our inestimable in-situ precious metals, coal, iron ore and nearly every other valuable mining commodity known to mankind, and our people, Treasury credit creation could remove:

  • income tax
  • payroll tax
  • Goods and Services Tax
  • land tax(States)
  • fuel excise tax (38 cents per litre)
  • stamp duty on property sales (States)
  • motor vehicle taxes (States)
  •  every other tax or impost
  • and most importantly remove the professed need for overseas investment(ownership)

Threats yesterday by China to boycott our agricultural exports and education providers if we don’t back down from an independent inquiry into the Coronahoax should be ignored. Australia does not need Chinese investment. In fact an honest government would confiscate all Communist Chinese Government-owned property in Australia as reparation for war crimes associated with the bogeyman Wuhan virus.

We could build the Bradfield Irrigation scheme, new high-speed rail links, steel works and foundries, aluminium manufacturing, new age, clean coal fired power stations, new age, safe nuclear reactors ad infinitum in deference to Chinese and the City of London financiers.

These projects could be funded just like the Snowy River Scheme without borrowing and give every Australian a standard of living equal to the best on Earth.

Bald-faced liars of the Liberal Party, Frydenberg and Sukkar slug taxpayers

Treasurer Josh Frydenberg is a bald faced liar. So too is his Assistant Treasurer Michael Sukkar and Prime Minister Scott Morrison.

All three have claimed on national television the $330 billion created by the Reserve Bank was borrowed and taxpayers are liable to pay it back.

The ABC broadcast this interview with Treasury officials who have stated categorically the Covid 19 bail-out Jobseeker fund to assist business maintain employee remuneration was created by adding extra noughts in Treasury computers. The ABC has rolled over yet again, under orders from Frydenberg, ignoring their previous radio interview about Treasury credit creation.

Reserve Bank creating money out of thin air to prevent economic disaster – PM – ABC Radio 

ABC reporter David Taylor naively claimed this was the first time Treasury had created credit. He is totally wrong- it has been doing it since the early 1900’s.

Treasurer Josh Frydenberg, in good old Jewish style is a bald-faced liar when it comes to money. Treasury created the credit to fund the Jobseeker bailout.

There is nothing new about credit creation by banks. Early bankers of the 17th and 18th centuries  accepted gold as a deposit then issued notes against the gold held in their vaults. The value of the notes often exceeded the value of the gold in their vaults.   These were the first bank notes used in every day transactions then and now. Except for the world’s greatest Treasurer, Liberal Peter Costello who sold most of our physical gold reserves to ‘balance the books’ and replace it with government paper.

Peter Costello agreed to sell most of our gold holdings in 1997.

The decision prompted cries of betrayal from the gold industry and, with the benefit of hindsight, was incredibly poorly timed. Since the sale of 167 tonnes of gold for $2.4 billion, or just over $400 an ounce, gold in Australian terms has rallied to record highs. The price peaked last July at $1819.44 an ounce, at which point the gold Australia sold for $2.4bn would have been worth $10.7bn.

In a vault deep in the basement of the Reserve Bank’s Martin Place headquarters in Sydney today sits a hoard of gold bars worth about $US500,000 each — all four of them.

The RBA now holds almost the entirety of the nation’s gold in vaults administered by the Bank of England.

Credit creation  as espoused by social credit crusader Major CH Douglas before and after WW 2  has been around for centuries.

Charged with rebuilding a destroyed Japan after WW2, General Douglas MacArthur rebuilt its economy without borrowing external funds. He created the credit needed by issuing paper as do the central banks of every country.  Japan turned into a powerhouse economy and led the industrialised world with manufacturing for decades.

Just as the Australian Treasury and the the Commonwealth Bank did for a century. Taxpayers should not be slugged to pay back the Jobseeker fund particularly as  Frydenberg, a member of the Jewish fraternity, admitted $60 billion was created unnecessarily due to a book keeping error and not needed after the sums were done correctly.

This credit does not exist as legal tender, that is notes and coins, but as a blip in the Treasury computer.

He could use these created funds to complete construction of the Bradfield Scheme to water inland Australia, high speed rail and new generation, coal-fired, base power stations thus creating tens of thousands of meaningful jobs.

 

Senator David Leyonhjelm supports citizens being able to protect themselves

Former Prime Minister John Howard comes out of mothballs to demonise gun owners yet again!

John Howard ,children overboard, Port Arthur massacre, AWB $300M funding Saddam’s slaughter, land theft from our farmers to fund KYOTO, such  credits to his leadership

This autocrat of the Liberal Party lives in another world. This is the man who allowed Port Arthur to occur. This man knew there was to be a psychological operation about to be waged against the Australian people. It was our first real, large scale terrorist attack putting aside the 1970’s rubbish bin bomb in Melbourne, which on the facts today was the first psy-ops carried out with the knowledge of a few in authority.

Howard and others knew the Tasmanian massacre was about to occur. It was not perpetrated by an ineffectual and incompetent young man with an IQ if 60.

Martin Bryant

Cairns News has published much about the Port Arthur shootings. Martin Bryant was not capable of inserting a box magazine into a Colt AR 10, 7.62mm assault rifle. This testimony was given to police by a Tasmanian gunsmith. This gunsmith was pilloried and harassed by authorities until he lost his business and fled the State.

Martin Bryant was charged for mass murder which he was incapable of doing. Simple facts that were buried by a 30 year ban on court transcript publication.

Tim Fischer

Now we have a raving Jesuit such as former National Party deputy Prime Minister Tim Fischer, again bagging and demonising gun owners. Tim should explain to the Australian people why he left Parliament overnight.  The Federal Liberal member for the Cairns-based electorate of Leichardt, Warren Entsch was involved in Fischer’s sudden departure from Parliament.

Fischer also might like to explain what happened to him when subsequently he was resident in the Vatican as Australian Ambassador to the Holy See.

The Jesuits are the hitmen of the Catholic church, pure and simple. Fischer was an army officer who served in Vietnam. He and the Bolshevik television personality Ray Martin led the campaign to disarm the Australian people.

David Leyonhjelm

Now after an Islamic terrorist attack in Sydney that, as Senator Leyonhjelm said today, could never have occurred in most States of America because its citizens are allowed the right of self-defence. The Islamic terrorist would know he was interfering with people who might be carrying a firearm. That alone would have been a deterrent.

At least one person in the café could have been carrying a firearm.

The mad muslim would have been shot immediately. The psychological distress and economic savings to the country are immeasurable.

As the Senator said: “Our citizens are victims waiting to be hurt.”

For many years Australian defence experts have advocated arming the population with military rifles based on the Swiss citizens militia model where all responsible adults keep a government issued rifle in their home.

They undergo periods of mandatory military training in readiness for any invader. Not surprising, there is little recorded crime against the body or property in Switzerland.  Can anyone remember Switzerland having ever been invaded?

There are no violent home invasions that we see every week in Brisbane and other larger centres. Because responsible Swiss citizens have been taught how to use a firearm.

How much longer do we have to put up with the treachery of the Labor Party’s Bill Shorten, the Greens Hanson-Young and the likes of Howard and Fischer. These people should have been tried for terrorism.

Watch this video featuring  Wendy Scurr the first person into the broad arrow cafe after the Port Arthur massacre.  She has a completely different story to tell from the mainstream media , the police, and the federal and state governments. Find out just how much disinformation and myths have been created around the pre-planned Port Arthur massacre. Watching this video with an open mind you will never be the same again.

 

More Deceptive Conduct from Tony Abbott!

wikileaks-justice

Australia bans reporting of multi-nation corruption case involving Malaysia, Indonesia and Vietnam

julian-assangeToday, 29 July 2014, WikiLeaks releases an unprecedented Australian censorship order concerning a multi-million dollar corruption case explicitly naming the current and past heads of state of Indonesia, Malaysia and Vietnam, their relatives and other senior officials. The super-injunction invokes “national security” grounds to prevent reporting about the case, by anyone, in order to “prevent damage to Australia’s international relations”. The court-issued gag order follows the secret 19 June 2014 indictment of seven senior executives from subsidiaries of Australia’s central bank, the Reserve Bank of Australia (RBA). The case concerns allegations of multi-million dollar inducements made by agents of the RBA subsidiaries Securency and Note Printing Australia in order to secure contracts for the supply of Australian-style polymer bank notes to the governments of Malaysia, Indonesia, Vietnam and other countries.

Government Spooks

The suppression order lists 17 individuals, including “any current or former Prime Minister of Malaysia”, “Truong Tan San, currently President of Vietnam”, “Susilo Bambang Yudhoyono (also known as SBY), currently President of Indonesia (since 2004)”, “Megawati Sukarnoputri (also known as Mega), a former President of Indonesia (2001–2004) and current leader of the PDI-P political party” and 14 other senior officials and relatives from those countries, who specifically may not be named in connection with the corruption investigation.

Prime Minister Abbott

Prime Minister Abbott

The document also specifically bans the publication of the order itself as well as an affidavit affirmed last month by Australia’s representative to ASEAN Gillian Bird, who has just been appointed as Australia’s Permanent Representative to the United Nations. The gag order effectively blacks out the largest high-level corruption case in Australia and the region.

The last known blanket suppression order of this nature was granted in 1995 and concerned the joint US-Australian intelligence spying operation against the Chinese Embassy in Canberra.

 

 

WikiLeaks’ publisher Julian Assange said about the order:

Julie Bishop

Julie Bishop

“With this order, the worst in living memory, the Australian government is not just gagging the Australian press, it is blindfolding the Australian public. This is not simply a question of the Australian government failing to give this international corruption case the public scrutiny it is due. Foreign Minister Julie Bishop must explain why she is threatening every Australian with imprisonment in an attempt to cover up an embarrassing corruption scandal involving the Australian government.”

“The concept of ‘national security’ is not meant to serve as a blanket phrase to cover up serious corruption allegations involving government officials, in Australia or elsewhere. It is in the public interest for the press to be able to report on this case, which concerns the subsidiaries of the Australian central bank. Who is brokering our deals, and how are we brokering them as a nation? Corruption investigations and secret gag orders for ‘national security’ reasons are strange bedfellows. It is ironic that it took Tony Abbott to bring the worst of ‘Asian Values’ to Australia.”

big-brother

“Amazing how blatant public servant corruption has not altered with the change of government”

(But we all know who the journo’s really work for!)

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