Need for Aussie Bonds again

HBS Guy

Head Honcho
Staff member
The morons at the RBA have cut rates so much—and to no avail except to help speculators—that savers are at the end of their wits trying to scrape together a deposit for a house.

So create Aussie Bonds paying say 3–5% per year. Would be an upper limit, say $100,000 that can be held and they should only be available to natural persons, i.e. actual people not companies, trusts etc. Can redeem, not sell or trade, them at the nominal value—you buy $25,000 worth of Aussie bonds you can get $25,000 + any interest due any day you like. (Normal bonds are traded at a market value, could be more or less depending on the interest the bonds bear, the length of their term remaining, current interest rates etc.

Govt would get a nice flow of money, use it to fix the stupid NBN properly! Savers get a reasonably decent rate.

Fixed interest—term deposits, interest bearing accounts—to be useful need to pay a return that is greater than the inflation rate + tax due on the interest. At 3% you lose one of those % to tax and another to inflation—the amount of money, the nominal value, stays the same but you need to make sure the purchasing power of the savings increases. 3% will give you, after tax and inflation, a 1% increase in the purchasing power of your savings. Fuck all. So maybe 5% Aussie bonds or 3% tax free interest? Might help cushion the real estate market facing a squeeze because of the lack of new migrants coming in.

But, nah, the fuckwits calling themselves a government have a masterstroke—they are going to freeze the pensions! THAT will fix the economy and later that will allow ANOTHER tax cut to the already rich! Fucking useless shits!
 

stunspore

New member
RBA is independent to government policy - they have to react to fed government policies (or lack of) to help keep the economy going. Responding to irrational political ideologue is bit hard for a generally apolitical public office, though at least the current libs suspending temporarily their nonsense economic stuff.
 
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