Applying Hanlon's Razor here: I do not believe the Australian government wants inflation. I believe they are generally incompetent, not malevolent.
They are too scared to do anything and risk losing the next election, despite the fact that they literally just won one, and they are too uncoordinated to do anything useful. It's easier to literally sit there and do nothing and put all the blame on the RBA and hope that it magically fixes itself somehow.
Re:Do High Interest Rates Fix High Inflation?
by CTDOCodebases on Tuesday June 13, 2023 @07:58PM
(#36319383)
It’s not malevolence though. It’s incentives. Therefore Hanlon’s Razor does not apply.
The debt has to get paid somehow in order for the government to meet its ongoing financial obligations.
Re:Do High Interest Rates Fix High Inflation?
by juve1996 on Tuesday June 13, 2023 @09:56PM
(#36320399)
Is Australia currently not meeting their debts or at risk in the short term future of not?
Re:Do High Interest Rates Fix High Inflation?
by CTDOCodebases on Wednesday June 14, 2023 @12:58AM
(#36321623)
You haven’t defined short term but I will say no.
When I say ongoing obligations I am referring to welfare and Medicare.
Look at the signs:
- increased immigration during a housing crisis.
- pay rises for the masses to push them into higher tax brackets.
- slow gradual rate rises below inflation levels to avoid crashing the markets and to allow debtors to exit their positions without triggering a recession.
They want inflation. In a high inflation environment the entities that win have income generating assets (in this case tax payers) and high levels of debt. The debt essentially gets inflated away.