Another extraordinary spray from Gotti in today’s Business Hysteria. Try foaming at the mouth while reading this to give it it’s full effect:
Will garbage statistics throw rates reason?
Robert Gottliebsen
Published 7:15 AM, 2 Aug 2011 Last update 10:20 AM, 2 Aug 2011
Do not do it. Do not do it. This is my message to the board of the Reserve Bank as they meet later today to consider whether to lift interest rates. There are a series of dodgy figures which the zealots at the Reserve Bank will see as a call to interest rate action. The board must look beneath those figures into the real world. And, believe me, there is little joy out there in non-mining Australia.
But there is a good chance the zealots will win at today’s Reserve Bank board meeting and interest rates will rise. If they do, then the board of the Reserve Bank needs to understand that they are putting the job of governor Glenn Stevens on the line. If an interest rate hike catapults the non-mining Australian economy into a deep downturn – as I expect it will – then the governor would have to offer the government his resignation.
Damn those zealots!
It’s intriguing that every time the RBA looks to hike rates someone has to pin the blame squarely on the RBA Governor. Who can forget this priceless font page from the Daily Telegraph back in April 2008:
I doubt we’ll ever see another shot of Pup and Lara arm in arm, but I suspect we’ll continue to see the RBA Governor slagged every time the commentariat feels we’ve gone a rate hike too far.
It’s intriguing how little credibility Stevens gets for his role in helping to steer the country through the GFC so effectively. At least he’s now paid well to cop the abuse.
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