Reserve Bank of Australia Governor Glenn Stevens has been criticised at this blog previously:
Now, conclusive proof that our Guv’na … who earns $1.05 million per annum, including a $234,000 pay rise at the peak of the GFC … is an ignorant, incompetent, ivory-towered #JAFA who should be sacked immediately, if not sooner.
From the RBA’s own website, behold! Stevens’ official speech to the Australian Business Economists Annual Dinner, Sydney, 9 December 2008. That’s right around the time that you, dear reader, were cr@pping yourself about the imploding global sharemarket … and he was enjoying a $234,000 pay rise.
Let’s see what he had to say about the Global Financial Crisis, and the events leading to it (emphasis added):
Many people have said to me recently that the times are ‘interesting’. My response has been that they are, perhaps, a little too interesting. I need not remind this audience of the international financial turmoil through which we have lived over the past almost year and a half, nor of the intensity of the events since mid September this year, in particular.
I do not know anyone who predicted this course of events. This should give us cause to reflect on how hard a job it is to make genuinely useful forecasts. What we have seen is truly a ‘tail’ outcome – the kind of outcome that the routine forecasting process never predicts.
Mr Stevens, you are either a liar.
Or, you are a blithering idiot.
Here’s a paper referencing more than a dozen international economists who all predicted and forewarned of the GFC for years in advance, and propounded cogent analyses as to why a GFC was coming. One of them, Australia’s own Dr Steve Keen, won an award voted on by his international economic peers for having done so:
This paper presents evidence that accounting (or flow-of-fund) macroeconomic models helped anticipate the credit crisis and economic recession. Equilibrium models ubiquitous in mainstream policy and research did not.
[* So is it any wonder then, that our much-ridiculed accountant in the Parliament, Senator Barnaby Joyce, is always the only one on the ball when it comes to correctly predicting the risks of what is coming?]
Indeed, here’s Dr Keen on our national broadcaster’s premier political program, The 7:30 Report, way back in November 2007 – 10 months before the Lehman Bro’s collapse kicked off the GFC main event – talking about the RBA’s latest interest rate increase, and warning of the dangers of high household debt levels:
So right there is one prominent Australian economist, who was loudly and very publicly forewarning of a coming GFC. For 3 years prior!
Indeed, lots of other, ordinary people like me saw the GFC coming too, and so were able to protect themselves from the financial devastation.
Devastation that you, Mr Stevens, somehow could not see coming.
You say, “I do not know anyone who predicted this course of events”.
Well mate, our taxes say it’s your #&^%! $1.05 million job to know!
Millions of good, decent, trusting Aussies lost hundreds of billions from their retirement savings, thanks to a GFC that jumped-up, mainstream-theory-blinkered imbeciles like you couldn’t see coming. When so many others – little people, with simple commonsense – did.
You are a national disgrace. And your Million Dollar Man salary, a despicable waste of taxpayers money.
Sack Glenn Stevens now.