Economics and Banking – Page 29 – Digital Finance Analytics (DFA) Blog

Resist The Creeping Madness Of Central Bank Digital Currencies Now!

Have your say on the imposition of Central Bank Digital Currencies, via a petition, open to the 21st December 2022 on the Government Website. More than 7,666 have already signed.

https://www.aph.gov.au/e-petitions/petition/EN4638

As Australian citizens we should be concerned about the disadvantages of a Central Bank Digital Currency. Traceability: In the case where physical cash is eliminated entirely this eliminates our ability to transact in a fully anonymous manner. Negative Rates: With CBDCs, you cannot withdraw your digital tokens and hold them under the mattress. If there is no option for physical cash this gives central banks ability to implement negative interest rates. Programmability: CBDCs give central banks a unique opportunity to make money “programmable”. For example: Expiration, with a direct relationship with your central bank, CBDCs could permit a currency expiration policy. Your money could be programmed so that if you don’t spend the $5000 in your account by next Saturday, it will expire. Personalised monetary policy: With a bank of Big Data on individual spending habits, coupled with digital identification infrastructure, the central bank will have enough information to tailor its monetary policy personally. For example if it is known that lower earners have a higher propensity to consume, stimulus can be directly delivered to those people. Personalised monetary policy could even become politicised. A government could segment its voters, identify communities where it is behind in polls, and deliver stimulus to these groups.
Petition Request

We therefore ask the House to enshrine the use of cash in law.

Go to the Walk The World Universe at https://walktheworld.com.au/

The Senate Debates Who Is Pulling The Strings?

A segment from a recent Senate debate (28th November) in which the question of who is pulling the strings on banking policy in Australia.

The context was the failure to get a bill up covering fines for poor bank executive behaviour, a compensation scheme and measures relating to consumer protection.

Financial Services Minister Stephen Jones pulled the bill after heavy lobbying from the banking industry.

The debate highlighted some important questions and critical themes – watch it through to the end to see Senator McKim and Senator Rennick let fly….

Go to the Walk The World Universe at https://walktheworld.com.au/

The New Loan Refinancing Dynamo Continues In October!

We look at the latest lending stats from the ABS. Overall new loan volumes are down, but refinancing is still running at circa $12 billion a month, close to record highs. On the other hand, first time buyer volumes are down. But the average new loan is growing again, which may be a sign of more equity-mate style redraws.

Go to the Walk The World Universe at https://walktheworld.com.au/

FedSpeak Brings Out The Bulls!

Fed Chair Powell gave an address overnight which set the markets running higher. The FED will lift rates further but perhaps more slowly. The markets liked that with the Dow moving into bull territory.

And in Australia, ANZ has up forecast future rates here, higher for longer.

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CPI At 6.9%: Numberwang Strikes Again!

A bunch of stats from the ABS , RBA and APRA. CPI was down a bit but largely due to rebaselining. The Trimmed Mean was unchanged.

Building approvals were down (again) and the latest data on lending shows an easing.

Net net, not enough to shift the RBA very far – 25 basis points next Tuesday is still most likely.

Today’s post is brought to you by Ribbon Property Consultants.

If you are buying your home in Sydney’s contentious market, you do not need to stand alone. This is the time you need to have Edwin from Ribbon Property Consultants standing along side you.

Buying property, is both challenging and adversarial. The vendor has a professional on their side.

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The RBA Says They Helped Create The Inflation Problem…

More from the Senate as they probed the RBA Governor, this time the discussion related to the cause of inflation. Governor Lowe conceded they had stoked inflation by monetary stimulus and low rates (and over did it). But then tried to defend the decision.

Go to the Walk The World Universe at https://walktheworld.com.au/

The RBA Says Sorry… Sort Of!

RBA Governor Lowe was quizzed by Senate Estimates yesterday and conceded that the repeated statements of no interest rate rise until 2024 may have mislead some people. This was important, though the apology which followed was not a real one.

Worth reflecting on this when Lowe is due to end his current term, and possibly be considered for another.

This is a short, where Lowe is quizzed by Senator McKim. See 3.50 for the specific question and half apology!

Go to the Walk The World Universe at https://walktheworld.com.au/

The Front Line In The War On Cash…

I discuss the latest developments on the war on cash with Robbie Barwick from the Citizens Party. In the final sitting week, it’s time to give the politicians a final serve in the interests of the people!

Call Minister Stephen Jones and Labor Senators today to protest capitulation to the banks!

Message:

I’m calling to object to Labor’s capitulation to the banks!
Labor must stand up to the banks by doing two things this week:

Pass the banking reform laws as planned, including civil penalties for executives to hold bankers accountable;
Support the push for a Senate Rural and Regional Affairs and Transport Committee inquiry into the regional banking crisis, including the government post office bank alternative.

Minister for Financial Services Stephen Jones: (02) 6277 7230 Stephen.Jones.MP@aph.gov.au

Click here to find the contact details of the Labor Senators from your state. https://cec.enudgemail.com.au/securl.php?nudge=y1052zpr1128&link=12460&email=robbie@citizensparty.org.au

Choice campaign webpage: https://action.choice.com.au/page/118203/action/1

Coalition banking inquiry blamed for mass branch closures
https://independentaustralia.net/politics/politics-display/coalition-banking-inquiry-blamed-for-mass-branch-closures,17015

Go to the Walk The World Universe at https://walktheworld.com.au/