Andrew

Eventually, even the government can’t stop the bubble from bursting. Albo is no different from Bernie Madoff—he’s just taking income from the future and extinguishing it today in the form of interest payments. It’s the same con, just wrapped in the national flag and called “housing policy.” All of it persists because the RBA has the country completely fooled. We’ve been conned into believing that handing over the majority of our income to a bank for the privilege of sleeping indoors is some form of investment genius. Once a democracy, now we are ruled by the Reserve Bank it’s an economic dictatorship . They issue their monetary commandments with the manner of a stern schoolmaster, insisting that their gospel is the one true faith. There truth is the only truth . But it isn’t sound economics. It isn’t even rational or logical . It’s a cult. “Stabilizing an unstable economy requires that the government fill the gap left by the decline in private spending. The larger the speculative boom, the greater the role the government must play as a spender of last resort.” — Hyman Minsky, “Stabilizing an Unstable Economy” (1986)