Posts Tagged ‘RBA’

I first heard about a cashless society back in 1980 when I started work for the Commonwealth Bank. Our manager returned from a conference, informing us that the wheels had started turning to make Australia a cash-free society in as little as ten years. Thirty-seven years later, and long time after the end of my banking career, it seems we are finally getting very close to that point of cash becoming a thing of the past. But so far, I am not seeing anyone talk too much about the very real negative that can come with this unless a government finally steps up to the plate for real for the first time. (more…)

The Thieves Gather

Posted: November 12, 2010 in Uncategorized
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First up, a correction.

In my wrath the other day, I incorrectly stated that the Commonwealth Bank had raised its base variable interest rate by 0.45% more than the recent Reserve Bank increase. In point of fact, the CBA’s total increase was 0.45%. But that is still a long way over the actual RBA increase.

All of the Big Four Thieves have now increased their base rates considerably more than the recent RBA increase. They continue to argue that this is a result of the cost of raising funds to lend out.

Give me a damn break. The F.B.T. are all making literally multi-billion dollar profits. They are purely and simply profit-gouging.

Blubberguts Joe Hockey, Shadow Treasurer, is naturally blaming the Gillard government for this, claiming it to be proof that they are useless, pathetic etc etc. OK Joe – just exactly what do you expect them to do? The Gillard goverment is operating under the same conditions that your lot did. So you would not have been any more successful than Gillard and co. And don’t forget that in your time as a junior finance minister, you were no more successful in pulling banks into order despite your public ‘putting them on notice’.

It is interesting to note that of comparable economies, Germany is the only one that similarly allows banks to have variable interest contracts ie charge what they want, when they want. The US, Japan, Korea, Canada, Spain, France and Holland – those countries do not allow banks to engage in this variable rate profit gouging. The Brits only allow it to happen in certain circumstances.

The reality is that both main political flavours have failed the Australian society at large by creating this monster and refusing to do anything to pull it back into line.

With the mining industry making massive profits as a result of high commodity prices, the Labour government wanted to introduce a super-profits tax on the miners. How about penalising the banks for their making excessive profits that are being taken straight out of the pockets of ordinary Australian consumers, not taken from foreign multinationals who are purchasing minerals etc. Of course this would need to be done with care to avoid them simply passing that straight on to consumers.

How about a massive fine per basis point above rate increases that the banks institute? Make it non-tax deductible. And give the ACCC or another authority the power to monitor and implement further retrospective major fines for any increases in charges beyond reasonable CPI-related increases in fees. Then another whacking great fine for every basis point that banks fail to pass on when prime rates are reduced by the RBA.

These thieving bastards MUST be brought into line. This profit-gouging CANNOT be allowed to continue.

I reiterate a statement I have made before: the objective of de-regulating the banking industry was not intended as a free ride for profit gouging.

C’mon Ms Gillard – give us something positive in response to this unconscionable behaviour. And you too, Blubberguts Hockey – quit grandstanding and offer up some positive suggestions.

And that’s my rant.