The sick silence around mortgage rate cuts

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Notice today that there is no pressure on the banks to cut variable interest rates from any quarter. Not one press article. No comment from the Government. Nor the RBA.

This is a great insight into how Australia’s Game of Mates works. Somebody, likely the RBA and the Government as well, has gotten on the blower to the editors to kybosh resistence.

Don’t get me wrong, I fully support the bank’s keeping the full 25bps cut for their margins. It will do bugger all for households with no income anyway. And the banks need it big time.

But where’s the honesty and trust in the delivery of this truth? Australians are not some moronic rabble that must be lied to to keep them in line. They are a very pragmatic people that will accept solid argument.

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Today silence around the banks is a very unhealthy way to deal with any crisis. Espeically a public health crisis implicitly requiring trust for good management. It stunts intellectual and policy development and holds back the nation at the personal and collective levels.

We have already seen for years how this same closed-circuit of policy group think protects the population ponzi that is destroying living standards. What will it be next? When ScoMo’s open schools policy spreads the virus and he comes calling to the editors will they hold back the truth? When he suspends the next election and deploys the army to their offices will they remain silent?

Sunlight is the best cure for all ills, physical, economic and political, a basic truth our sickened real estate media forgot long ago.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.