Mobydisc said...
If the Aussie dollar is too high then why not increase the money supply and at the same time give all Australians a bit of help? A lot of people don't benefit from interest rates falling. Perhaps phase the handouts over time so there isn't a sudden spike in consumption that creates distortions, ie beer suddenly costing $100 a carton. Inflation would rise as it always does when the money supply increases however everyone would be compensated through the cash.
It would do more to improve the economy that dishing out new money to banks. Many people think the economy is going great. However there are many people struggling, especially small businesses.
It wouldn't cost taxpayers anything because the money would be created, not transferred from taxpayer to beneficiary.
Inflate the dollar by printing sh!tloads more and all of a sudden to replace your $2k kite will cost $3k locally due to inflation and cost of living going up. Where's the benefit in that? Doesn't mean anyone 'makes' any more money then what they originally did, because the cost living then more.
Last i heard the top three aussie banks where netting 3-4 billion last annual. I don't see how giving them new printed cash helps the economy.
Printing cash to inflate the dollar for the purpose of making Australia a more attractive investment to overseas governments (in this case, china buying up our agricultural interests), doesn't help long term surely.
The saying goes, 'it's not a recession until you loose your job'. Seems most people are ignorant, and happy to pitch a 36 hour week for a salary plus 50 cups of coffee courtesy of small business going broke.
ok, rant over.
