RBA Concerned About Greece

16 Mar

And about time too!

From The Australian:

The Reserve Bank lifted the cash rate to 4 per cent in early March in response to two months of data suggesting the economy might be growing at or close to trend.

But board members expressed concern that the fallout from the Greek financial crisis might have implications for the Australian economy, the minutes of the RBA’s March 2 board meeting say.

The minutes show the central bank was concerned about the possibility of contagion, that the Greek problem could spread to other parts of Europe.

“The main risk was the possibility of contagion to other sovereigns and perhaps other markets, primarily in the euro area.

“Members agreed the fiscal problems in Europe, if not resolved satisfactorily, could result in renewed turmoil in markets and fresh weakness in the global economy, which could have implications for Australia.

However, the RBA’s wishful thinking remains strong:

“But while that outcome could not be ruled out, it was not the most likely one.”

I would like to see RBA Governor Glenn Stevens and his cohorts called before the Senate, and forced to actually justify their crystal-ball gazing confidence  by producing real evidence.

They completely failed to predict the GFC.  That EPIC failure cost Australians literally billions in lost retirement savings and investments.

Why should we believe the RBA’s judgement is correct now?

Especially when there are ever-growing contrary views rolling in daily, from all around the world.  Many from those who did predict the GFC!

And they do not share the RBA’s judgement.

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