How you, the citizens, hold the Money system on your shoulders and locked in place.

On our journey so far, we have reviewed 15 topics and have established 21 rules of ‘Money for the Masses’. By now you no doubt understand that I am no fan of mainstream economics and the interpretation given it by the media, politicians, economists and Rent seekers who all seek to enhance their personal positions through obfuscation, misrepresentation and just making things up to justify unjustifiable positions.

If you agree with my analysis and conclusions, that’s good. If you’ve learnt something, then I’ve done my job. If you disagree with me then that’s also good as you have been challenged by an alternate view to your own. Whichever it is, citizens need correct knowledge to confront politicians and the business 1%ers on their biased misrepresentations to enable change. In a democracy the power does lie in the hands of the citizens, but they need to mobilise and act on it.

Australia in one aspect is the lucky country, with large inground resources that currently support a high standard of living for many; however, these bounties are actually turning into a curse for most citizens. Everywhere I turn there seems to be misinformation and damn lies that are designed to hoodwink citizens and therefore take advantage of those citizens to the benefit of a few.

Important economic concepts including Money, banking, housing, immigration, superannuation, productivity, interest rates, the external account, foreign investment, inflation and GDP are misrepresented as benefiting citizens but are actually designed to make the system unfathomable for most citizens for the benefit of a few. In a democratic country there should be systems designed for an equitable distribution of the benefits of society that rewards for effort and contribution and looks after those that can’t contribute. Australia is certainly not an equitable society.

Starting with the banking system and the creation of Money, the power is in the hands of the citizens, or more correctly depositors of Money and borrowers of Money. The size of Megabank both in terms of loans on balance sheet and market value on the ASX is obscene when compared to productive countries and is only able to be achieved through the continual support of Australian citizens. Senior management of Megabank are paid indecent amounts of Money relative to the sustainable value that Megabank brings to the economy. Megabank is necessary infrastructure but is not export orientated or the creator of productive goods.

Megabank and its management are Rent seekers, having been enabled by government policy, regulation and weak regulators, with the unknowing backing of Australian citizens. Citizens need to be properly informed and recompensed for the financial support provided indirectly to Megabank. At the very least, the Money creation machine that is Megabank needs to be much more diversified, with a level playing field for all divisions of Megabank so that both borrowers and depositors are rewarded as the valuable stakeholders they are. Policy and regulation can achieve this result.

Systems such as housing, superannuation and immigration are policy issues that are easily made more equitable by changes to government policy and actions. Changes start with citizens understanding how they are being used and knowing that changes benefitting most citizens and not a few must be on the political agenda.

Although Australia has had tax benefits for housing investors for decades that exceed whatever is available to owner occupiers, there is no viable economic research that more housing has been built by providing extra tax benefits to investors, rather than tax benefits (or not) being equal for investors and owner occupiers. It’s a simple matter of following the Money from the tax paid by owner occupiers and renters into the pockets of housing investors. Yet it seems many owner occupiers and renters voted for the retention of negative gearing and capital gains tax reductions, and these are now untouchable policy issues even if they severely distort the housing market..

 Superannuation and excess immigration are also very large policy issues and forces on the lives of citizens, and yet the cost to citizen’s Money and alternatives to current policy does not even make it on to any policy reform agenda. We need to wake up and stop being exploited!

Rent seeking is deplorable and is imbedded into the Australian economic system. Rent seekers are experts at arguing their case and have great political influence, no doubt because of the Money generated to government and political parties. The Rent seeker business model is using sleight of hand to build up Money benefits through employment or economic activity that will disappear without the Rent seeking. Not only are their arguments false but the disappearance of Rent seeking would accrue large extra Money benefits to citizens.

By its very business model, Rent seeking ensures that citizens pay more Money for goods and services than they would in a properly competitive market. Thereby transferring Money from citizens to Rent seekers in an inequitable division of Australia’s Money.

Governments can benefit citizens by significantly reducing Rent seeking through regulation or enforcing existing regulations. Pressure must be put on governments to act, and this can only start with citizens recognising when Rent seeking is happening, and how it costs citizens more of their hard-earned Money for goods and services than it should. In a Rent seeking society Money continues to gravitate to the 1%ers. We must become aware, vocal and stop being exploited!

Australians have generally thought highly and respectfully of our Central Bank, the Reserve Bank of Australia, although recent 2023 interest rate rises and previous assurances that they would not happen have worn pretty thin with mortgagors. My view is a little different as I’d say our Central Bank is not fit for purpose; it is not independent, is biased against the average citizen and is riddled with economic dogma that stops it looking closely at facts and causes.

The Central Bank’s use of simple statistics like inflation, unemployment and GDP to make important decisions on how it should use its box of tools is simplistic and allows it to shoehorn a one-size-fits-all solution without thinking through their responsibilities or the effect on many citizens. The Central Bank denies that Rent seeking exists and the effect it has on citizens. If it did then its response to inflation and its causes would be very different from simply raising interest rates that punish innocent sections of society.

The Central Bank’s charter needs a complete overhaul, with overseeing of the whole banking system included in that charter to ensure that citizens get value for their support of Megabank. Whatever targets are put in any new charter need to be properly defined.  Using simple expressions or statistics that can be manipulated and misconstrued does harm. We need and should expect much better from our Central Bank and the rest of the banking system.

Australia’s financial system sits on the broad shoulders of the 99% of citizens, not the 1%ers. Citizens are exploited and Rent seekers rule. Citizens are certainly not rewarded for the value of their contributions and support given to the Money creation system. This needs to change. That leads us to Rule 23.

Rule 23: Wake up and stop being exploited! Citizens hold the power; they just need to use it. Get loud!