Labor: Muzzle Phil Lowe

Via the AFR:

Over the last year, Dr Lowe has provided views on the impact on wages from higher superannuation, regulation requirements around responsible lending laws and buy now, pay later providers, and the need for state governments to contribute more of the fiscal heavy lifting during the COVID-19 recession.

But Mr Jones thinks Dr Lowe has gone too far.

“I am concerned that, of late, the governor has sought to push the envelope beyond legitimate commentary on monetary policy,” Mr Jones said.

“The Reserve Bank governor is an important voice and has my respect, but he is not infallible.

“Recent comments regarding superannuation risks the appearance of entering the political debate.”

Actually, the RBA sticks its beak into much more than that. It is now a major climate change advocate, is a major immigration spruiker despite arguing for higher wages and, just recently, started doing CCP dirty work as well, demanding better China relations, without due consideration.

Given I agree with a bunch of these while disagreeing with a bunch of others, as will most, it’s not easy to draw any line where the bank should be silent. All of them have macro implications so are not irrelevant to monetary policy.

I guess the RBA will just have to keep going as it is and face the music in the debates that it gets It wrong. Seeing it fall off its preposterous pedestal in the media would be no bad thing.

Finally, we can note that Labor’s hand is exposed here as well. Amid a criminal lending push, a mass immigration push to crush wages, and a push to sell Australia to the CCP, what upsets Labor about the RBA is any notion that its super gravy train be derailed.

OMFG not that!

David Llewellyn-Smith

Comments

  1. Well he’s lost his moment in the sun each month on his IR decision so he’s probably trying to maintain some kind of relevance going forward. He’s probably dreaming up all kinds of monetary shenanigans so nobody comes to the conclusion he is no longer needed.

    • happy valleyMEMBER

      Following on the lead of his happy clappy predecessor Captain Glenn, Captain Phil has helped send house prices to the moon, destroy savers’ and depositors’ “wages” (ie income) and make huge household debt the gold standard. And the taxpayer pays this bloke megabucks to contribute to such societal division – what a legacy. But it’s just a matter of time before he gets his AO “gong” just for doing a job.

  2. The RBA Charter is so dry and technical, what with its stodgy emphasis on “directing monetary policy to the greatest advantage of the people of Australia”. Currency stability, full employment, people’s welfare, ho hum.

    No wonder our fearless “Mr Magoo” prefers to be a cultural sounding board for received wisdoms and trendy causes of the elites. You’re more popular with non-economists. You get better seating at the top dinner parties. I’m surprised he hasn’t promised Net Zero Emissions from all of Australia’s financial transactions. Or maybe he already has.

    • Jumping jack flash

      A debt economy has a fairly small carbon footprint compared to one that is based on collection of raw materials, manufacturing, and sales.

  3. Jumping jack flash

    “It is now a major climate change advocate, is a major immigration spruiker…”

    Smells like he may have one of those “social advisors” or something.

    “…arguing for higher wages..”

    We need higher wages, but higher prices need to come first, and higher prices need to be supported by the correct rate of debt growth otherwise nobody will be able to pay them.

    It is a precarious system, but i believe they have the best shot in 10 years at getting it right at this moment.

      • Jumping jack flash

        Stimulus due to COVID plus ZIRP. A decent percentage of 35 billion of super money being leveraged into mortgages.
        I may be wrong, but we should know by March/April 2021 whether we’re on the right track.

        First will come an enormous pile of new debt, then the price inflation – not necessarily reflected in CPI, then comes the wage inflation some time after, which will be used to create more debt. If it all happens at the correct amplitude and frequency the economy will take off. If not, then they’ll have to go back to wage theft and the slow melt.

    • Display NameMEMBER

      Doubtless has a bevy of media advisors, maybe a focus group or two and perhaps an empathy consultant for good measure to round out the media presentation. And probably out sourced to one of the big four to provide an apparent gravitas. Our tax dollars at work. And what do we get from the RBA ? Are they providing value for money? Do they represent the average Australian?

  4. Mr Jones is just concerned that the SG rise won’t go ahead. And if Labor happens to win government and Phil is still there might be a problem.