Australian Reserve Bank rips off savers once again

Once again the greedy pigs of the Australian Reserve Banks stick their filthy paws into savers (and everyone else's) bank accounts to take even more interest off them in order to prop up the wealth of speculators. Not satisfied with banks paying people virtually nothing for the use of their money they steal even more from hard working people who try and put money aside to pay for stuff in the future. Banks already pay next to nothing for the money they lend out to borrowers at much higher interest rates. Do they need any more help? No way. Their highly inflated share prices show that they need no help whatsoever.
The rotten reserve bank will now mumble apologetically about trying to stimulate the economy. What rot. The only thing they try to stimulate is the pockets of their fellow rich property speculators and the dopey public will accept the rhetoric like the zombies that they are. Its about time that savers took to the streets and demanded a fair go. There has been too much money created out of thin air and governments want to reduce this by destroying bank deposits. Why should savers have to lose their money through inflation to pay for the lifestyles of wealthy property spruikers?
How many houses do they really need?
How much do people have to pay in interest on a credit card? Heaps. Just so that those bank executives can still get their multi million dollar salaries I suppose. Paying people less interest than the true inflation rate is theft no more no less.

a reply to: grumpy64

While I agree with most of what you said what actually happened??

Link perhaps?

Pictures (links) or it didn't happen!

I haven't heard of this.

a reply to: Metallicus


they dropped the interest rate in Australia to help out those with home loans so they say not to many have savings that would be so drastically effected in my opinion, but I am a poor man so what do I know.

www.abc.net.au...


www.smh.com.au...

www.theaustralian.com.au... 3e0282bad76ec3a6abcc885

They cut savings interest rates in the UK too. About the only things left that pay decent savings rates are goverment issued bonds, and those are oversubscribed. The post office once offered savings schemes in order to keep their local offices open, but the banks complained it was unfair competition.

Then why are you putting your savings into a Bank? They don't pay for the privilege so don't use them.

Get yourself a shoebox and keep the cash under your bed. It's certainly more convenient than standing in line waiting for a teller. If there's a bank run, they won't have your cash to give back to you anyways.

I use my account for bill payments only and maintain a minimal deposit. If enough people did that, the banks would have to realize they pushed the envelope a bit too far and adapt.

The banking system of the last century is obsolete. Using banks for savings is nothing more than a habit based on an out of date, and now false, security blanket.

originally posted by: nwtrucker
Then why are you putting your savings into a Bank? They don't pay for the privilege so don't use them.

Get yourself a shoebox and keep the cash under your bed. It's certainly more convenient than standing in line waiting for a teller. If there's a bank run, they won't have your cash to give back to you anyways.

I use my account for bill payments only and maintain a minimal deposit. If enough people did that, the banks would have to realize they pushed the envelope a bit too far and adapt.

The banking system of the last century is obsolete. Using banks for savings is nothing more than a habit based on an out of date, and now false, security blanket.

The rural French did exactly that before the Euro came along. When the Euro was introduced and there was a changeover, all that money had to be spent immediately. Gold coins would seem to be the better option.

originally posted by: InhaleExhale
a reply to: Metallicus


they dropped the interest rate in Australia to help out those with home loans so they say not to many have savings that would be so drastically effected in my opinion, but I am a poor man so what do I know.

www.abc.net.au...


www.smh.com.au...

www.theaustralian.com.au... 3e0282bad76ec3a6abcc885

It is never the reserve bank's or a government's intention to assist your average homeowner in any way at all. If you believe that you are extremely naive for someone on ATS. Governments exist mainly to preserve the status quo of the rich and powerful established elite. So any economic decision is only in the interest of the rich. They usually claim that they are helping out the people but these statements are only for the gullible. Look at what happened in the US when the taxpayer had to fork out to bail out the merchant banks. Politicians and other elites own huge "portfolios" of properties so they want those values to continually rise. This is done by dropping interest rates continually until there is a crash. Many people in this area that I live in are pensioners and rely on the interest they receive from savings. Talk about taking from the poor and giving to the rich!

a reply to: stosh64

They dropped interest rates once again at their monthly meeting. This will not help business as they claim as business lending is fairly much fixed at 8% in Australia irrespective of what the reserve bank says. But it will help those speculators. It will make it much harder for those poor people trying to buy a house to put a roof over their heads as the prices will now now skyrocket and they will be worse off. It was exactly this kind of easy money that caused the GFC.

cheers

a reply to: stormcell

This speculation on my part, but I'd say both cash and gold/silver.

My reasoning is in the event of economic collapse, the immediate scarcity becomes cash. One doesn't use an ounce of gold to buy a loaf of bread. Retailers will take cash-at least in the short term-if there is no credit/debit system in play.

Apparently, there is only $450 printed cash for every U.S. citizen. The rest is purely electronic 'money'. Of that 450, 2/3s are out of country sitting in safety deposit boxes, etc..

That leaves only 150 bucks per soul in country. I'd called that a supply and demand bounty...in the short term....after that? Your guess is as good an mine.

a reply to: Metallicus

Sorry I was too cranky to think about putting in a link. It was a simple reserve bank decision to cut interest rates to absurd levels in the same way that caused borrowing to get out of hand and causing the GFC.

originally posted by: nwtrucker
a reply to: stormcell

This speculation on my part, but I'd say both cash and gold/silver.

My reasoning is in the event of economic collapse, the immediate scarcity becomes cash. One doesn't use an ounce of gold to buy a loaf of bread.

Retailers will take cash-at least in the short term-if there is no credit/debit system in play.

Apparently, there is only $450 printed cash for every U.S. citizen. The rest is purely electronic 'money'. Of that 450, 2/3s are out of country sitting in safety deposit boxes, etc..

That leaves only 150 bucks per soul in country. I'd called that a supply and demand bounty...in the short term....after that? Your guess is as good an mine.

This may be a good call. Some experts are suggesting this too. Gold could be on the rise soon as the EC brings in its money easing fiasco. The only thing that scares me is the strange manipulation of gold prices as some countries buy up gold and try to keep the price down while they buy it. It will eventually increase in value quite a lot. A few years ago Bitcoin would have been a really good call too.

cheers

originally posted by: grumpy64
a reply to: stosh64

They dropped interest rates once again at their monthly meeting. This will not help business as they claim as business lending is fairly much fixed at 8% in Australia irrespective of what the reserve bank says. But it will help those speculators. It will make it much harder for those poor people trying to buy a house to put a roof over their heads as the prices will now now skyrocket and they will be worse off. It was exactly this kind of easy money that caused the GFC.

cheers

Thanks for the clarification, I was not aware of this.

IMO, it wont be long until negative interest rates slowly creep in, they already have at the SNB.

The SNB announced Thursday it would set an exchange rate of -0.25 percent on sight deposit account balances at the central bank.

Not long ago, a theory was floated that to avert an economic crisis, all central banks had to do was cut interest rates below zero and this would boost growth. That theory was then put to the test in the eurozone and Switzerland. And now, it's failing.

I have been doing what nwtrucker mentioned. Only keep enough deposited to pay bills, I have some cash on hand and when I can afford it I take the extra cash and buy silver and gold rounds.
Always have the physical though, if you cant touch it you don't own it.

I will have to leave a treasure map in my will to my son, lol.

a reply to: grumpy64

Now for some humor... OK. The whole thing goes down. Gold soars to barely imaginable heights....Too valuable to carry around for mere day to day purchases.

That calls for 'script'. For script to inspire any confidence, one would need a 'trusted' third party holding gold and backing that script/money....banks make a huge come-back...

They dropped the interest rate because our economy is heading into some difficult times.

Aussie dollar has fallen off a cliff
Iron Ore price has fallen off a cliff
Brent Crude has fallen off a cliff
Redundancies are up

This has nothing to do with investors, we're in for some turbulence.

a reply to: Agit8dChop

The Aussie dollar is down because our interest rates are going down. Currency goes up when interest rates go up. As to commodity prices, they were always going to go down as you cannot have a boom go on indefinately. But our balance of payments and balance of trade is out of whack which used to be dealt with by slowing the economy by putting interest rates UP not down. People are still buying foreign goods like there is still a boom going on. But I agree that Australia is in for more than just turbulence. But don't believe the rubbish that the reserve bank prattles on with. They lost control of the economy years ago. But yes, we are headed for very difficult times in uncharted waters so they should not be creating another property bubble to add to our woes when the cake hits the fan!

cheers

a reply to: grumpy64

Hey its saving a few I know just under $50 a month on their home loan that are struggling so that helps them, why not others that are in the same boat?

I actually take care of a pensioner and their finances that has a small amount of saving and what you say is just rubbish to my eyes and ears when reading it. if a pensioner wants to save using savings and getting the full pension there is only a certain amount they can make before they need pay taxes on money earn t, once they earn more interest the government takes some back through taxes as they go above the tax free threshold mark.

on a 12 month term deposit for what the banks are offering now which is around the 6% P.A. mark, a person with a $100,000 in savings will earn $6000 a year in interest, adding that to their pension which a full pension let just say aged pensions is just under about $19000 a year,add the interest and that max out what they earn before they have to start paying taxes.

A 0.25 cut wont really effect the savings much unless they are pensioners doing a dodgy and have way more money in savings then they are claiming and also receiving a pension. with the numbers I provided on a full pension and $100,000 in savings its only $250 a year less in interest. that is if the bank passes on the full amount, most likely wont and term deposits will pay out around the 6 or high 5s.

Term deposits don't need to be for so long either you could do one a 3 months but the interest rate will drop, some banks will do 7 months term deposits for the same rate as 12 months ones so you get the most interest possible on a shorter term.

So are you talking about people that have massive amounts of money in savings and calling them poor and how the poor are going loose money on interest when they have more than $100,000 in savings?

Not exactly sure on the amount one is allowed to have before they get their pension cut because they have so much cash in savings but I believe a $100,000 is either just over that mark or just below.

Interest rates have fluctuated in the last few years here and haven't continuously gone down.

Wait till next quarter or next half and the will go up again.

It is never the reserve bank's or a government's intention to assist your average homeowner in any way at all. If you believe that you are extremely naive for someone on ATS.

Are you serious?

Tell that to first home buyers that received up to $21,000 in some cases.

So you know what their intentions are?

What position do you hold in one of the two to make such a statement, or is simply your paranoid belief, then you fit right in here as the number one rule in my opinion of an ATS poster is they need or have a high level of paranoia, hence one of the reasons of coming here to either validate or dismiss theirs.

a reply to: InhaleExhale

Where on earth and what country are you in where term deposits earn 6% ? You are dreaming. Term deposit rates have hit the 2.5 % here rate pal and the true inflation rate would be more than that. Therefore savings are being stolen. Simple as that. Again, who is offering this 6% ? Nobody. That is how I know you have no clue what you are talking about. As to that $21000 handout it goes to show how far governments are willing to go to keep that speculation gravy train going and prop up house prices. With taxpayers money I might add. And don't insult my fellow ATSers and don't call them paranoid unless you are a trained psychologist!

originally posted by: grumpy64
a reply to: Agit8dChop

The Aussie dollar is down because our interest rates are going down.

I don't agree, the interest rates have been low for a few years now. The Aussie dollar was peaking when the interest rate was low.

the Aussie dollar is dropping because of Iron Ore, Oil and the Chinese economy. We are not worth that much when other nations are not buying our natural resources. You can tell by office space and real estate.
GREED has F***ed us!

The number of residential properties for sale in Perth -- including houses, apartments and parcels of land -- rose by 45 percent last week from a year earlier to 12,706, according to the Real Estate Institute of Western Australia.

"Supply is creeping up across the state," said Gary Hicks, a director at real estate agency Ross & Galloway in Melville, about 17 kilometers from Perth's city center. Home rents "have dropped 10 to 15 percent over the last six to 12 months."

WARNING - WARNING - WARNING!

all you idiots who bought multiple investment properties for $450,000 a pop are in for a shock!

a reply to: Agit8dChop

You don't have to agree with me on low interest rates causing a lower dollar but traditionally a nation's currency will rise when interest rates go up as foreigners buy that country's currency to deposit money and take advantage of higher interest rates in that country. The opposite is true when the interest rates drop. This principle is used as a tool by reserve banks everywhere. Don't take my word for it, check this up. This is one of the reasons the US interest rates are so low- they are trying to keep their dollar down so that their products are more attractive to overseas customers. It gets very complicated doesn't it? Countries around the world are manipulating their currencies to try and get some advantage then accusing each other of currency manipulation (which may be an offense). But the whole system is collapsing, and interest hijinks are not having the desired effect as another poster pointed out.
I totally agree with you about our country not being worth much when when other countries are not buying our minerals and stuff. And I agree that at some point people are going to get stung by paying too much for property during the boom.

cheers