You read this article written by the ANZ 12 months ago and all we wanted to do was stop this dreadful thing called inflation. They are only echoing their mates and the discussions they had over a wonderful lunch down in the Pub in George Street Sydney or William Street Melbourne.
You really do have to worry about the Ecomonists of the world because quite simply these guys are quite capable of telling us anything they want us to hear as they attempt to predict (manipulate?) markets.
I have been amazed at the continual Economic Outlook being promulgated daily and in one day you can generally find a variety of conflicting opinions. Our economists spent months convincing the markets that interest rates in Australia needed to rise because of the inflationary trend. A trend mind you largely driven by Oil Prices that continued to spiral until OPEC called the Wall Street Futures Traders out for over trading the price on economist outlook. When they cut the production rate we saw Oil Prices fall out of bed in monumental form and return to a reasonable price. I bet one thing for sure these sods are still manipulating a market.
I watch with interest daily the trade in our "SPI" Index trading - yet another wondrous document that can be traded against a number (created by adding a few "indicator" numbers together multiplying by 100 and calling it an index) that is clearly manipulated by the dealers within minutes of the ASX opening. Frankly the only reason they trade in this index is because they (the dealers) can manipulate it, otherwise they would be down at the casino dropping there money on 26 Black.
My simple questions how do we take control these "experts" who clearly are a disgrace to the piece of paper they call a degree.
Our Reserve Bank listens to these people and now admits they were hasty in lifting rates. Even worse is the horrible truth of where these "experts' have taken us and we are paying a very dear price.
Lets get back to trading physical commodities, lets remove fancy negotiable securities and go about our business of living, buying our food and purchasing to satisfy our needs. Let Governments get on with providing us with the essentials of life like schools,roads and hospitals etc., and to the Economists of the world go and get a "real" job.