Below was posted December 26 2021.
US Federal Banking Board and Australian RBA Interest Rate Policy Myth.
Before you the reader begin reading text, I should remind readers school education had students reading data as though all data was believed truthful hurrying through around 10 curriculum subjects that had no relevant thinking connections between subjects which could be formulated. Students hurriedly reading stories to gather probable examination answers to questions while feeling negative reinforcement stress reducing memory abilities, repressing more enjoyable feeling day dreaming thoughts to complete teacher assigned reading tasks. Below reading has thinkable connections between events, which due to schooling students have been conditioned to repress thinkable ideas. If by chance reading below increases thinking traumas, maybe reading below can increase reading intelligence awareness between various event connections desensitisation. As many years of schooling behaviour conditioning is difficult to correct toward more thinking awareness, the easy instinctive behavioural pathway is to merely judge every read content prompting thought thinking trauma as incorrect knowledge.
Aged 5 years children as years progressed learnt how to realise truth from fiction by making memory connections between actions and intelligent parental guidance, as time progressed thinking out what was realistically true to what was improbable. I say such intelligent gathering information behaviours have been cut short by school education’s too many hours spent communicating with children of the same age, stressed by too many simple movement visual distractions from a class full of children, teachers only concerned with teaching basic letter sounding and number calculations.
As young children’s natural learning behaviours were to ignore what feels bad, judging what feels bad as false knowledge, I say school educated adults use child learning behaviours by escaping learning new ideas on feeling school learning repressed stress traumas, 99.9% of adults don’t know they have, that read and heard not realised previously knowledge feels incorrect, not having any comparable memories, feeling dumb embarrassment with fellow class students, quickly judging knowledge as incorrect, feeling less stressed indicates the quick judgement was correct. Experiencing that mentioned “personality protecive cognition” Adam Ruins Everything boxing Youtube video. So having been made aware, and you still insist in judging below reading as incorrect, than there’s little point in continuing.
I also add all media entertainments are no more than a list of stories which doesn’t prompt complex thoughts, read and heard frequently, audiences don’t realise the list has place names, people names and image scenery changed so to look different, not seen or heard before. By not participating in media entertainments people can free their memories for new adventures.
To Begin: Countries Federal Bank Board Increasing Interest Rates Policy To Fight Inflation Is False. The Policy Has More To Do With Removing Accumulated Wealth From Working And Middle Class Citizenry:
Raising variable interest rates in order to reduce and/or stop CPI and wage inflation calculated by a basket of consumer goods, such a policy should be considered lies.
The only objectivity bank board raising interests rates provides, is to reward bank depositors for not spending savings money which once saving money is being spent, fewer goods and services are obtainable to be purchased further fueling supply shortages, increasing demand retail wholesale price rises.
Raising/increased interest rates: increases business loan servicing costs, forcing businesses to raise prices on provided goods and services; rising prices causes workers whom service debt to consider asking for increased wages arguments with employers being justified by released CPI data increases and/or pursue obtaining new higher paying employment, further pushing up goods and services prices; citizenry reduce living expenses as inflation of necessary items prices increase, buying fewer goods and services, which reduces businesses goods and services turnover, forcing businesses whom have fixed business expenses to increase goods and services prices, where competition has similar concerns competition will follow the same tactics; when money is cheap servicing low interest rate loans, increasing business opportunities allows better profit margins, resulting in paying more federal taxes and increased GST due to increased goods and services turnover, raising interest rates to reduce consumer consumption to increase unemployment, government reduced tax payer incomes while increasing unemployment benefits to more unemployed people; employers first choice to end employees employment are often reducing older unskilled employees, whom many will not be able to find replacement employment due to their elderly age, elderly people maintaining unemployment status for many years until retirement age pensions.
Periods of low market valued crude oil reduce business transport fuel costs, providing distributing goods and services beginning at the raw material stage, provides periods of low inflation, allowing federal banking boards excuses to reduce interest rates. When crude oil prices increase business costs increase, increasing CPI inflation. Federal banking policy to increase interest rates increases business costs, plus (‘opportunity costs’ theory alternative investment opportunities) to increase goods and services prices, further providing reasons for federal banking boards to increase interest rates.
USA crude oil futures market determined by each day’s USA crude oil held in large land based containers often determined by crude oil tanker ships arriving and unload into land based containers, influencing world crude oil prices. Donald Trump stating low crude oil prices are due to USA exports crude oil. Due to the nature of USA consistent fuel consumption: workers going to work; transportation of goods and services; etc.,… raising fuel prices has little change to daily fuel consumption, therefore to increase crude oil prices to reduce consumption is little more than increasing economic indicator CPI inflation, being that motor vehicle fuel prices are included in the CPI basket of goods. Many people are aware yet fail to consider establishment manipulation of CPI data inflation.
By regulating crude oil shipping arrivals or to merely manipulate crude oil futures market prices, federal banking boards can apply fake interest rate policy theories to allow banks and financial lending institutions to raise interest rates on borrowing customers, generally after a period of low interest rate deregulated financial lending.
Economic theory by increasing interest rates slows economic growth increasing unemployment, that workers are more likely not to ask for pay increases, has not always worked. During second half of 1970s post Vietnam war, many physically capable young males having returned to their country of citizenship, desiring employment, increased unemployment, wage inflation continued with a 10% unemployment rate. Vietnam war was a war economy ending in 1975, armaments industry would have ended. The low economic growth with high inflation figures condition was labelled “Stagflation”. Interest rate percentages were said at the time to be lower than inflation percentages. I speculate as gold prices increased during 1970s to that late 1979 US$800 an oz., sudden increase in interest rates to something like 20%, for a period dropping gold price to US$400 an oz., directly after the 1977 to 1979 property boom, as 1970s many news reports reported under inflation bank loan interest rates were responsible for increasing to double figures inflation, western economies’ citizenry were being propaganda conditioned to accept 1980 president Reagan’s new policy on above inflation bank loan interest rate percentages to fight goods and services measured CPI data and wage inflation.
RBA recorded variable interest rate history records the new policy didn’t change any increasing movement of interest rates until the middle of the 1980s. I say 1980s RBA variable interest rates are very incorrect, all the low 7% interest rate lending booms are missing and the 2 years post 1987 share market crash Keating stating “we don’t want to go into a 1930s depression” 4% bank loans, property investment boom.
Increasing bank deposit interest rates you would think increases bank customer savings. As media are frequently reporting CPI inflation and property valuation inflation percentages bank depositors with at least enough savings for a second property deposit, select an investment property or merely a weekender property. During high interest rate periods banks whom lent cash required property as security and as interest rates were high, so property was not so in demand even though property was cheap, sufficient bank deposits interest rewards for not spending cash was not inspiring change for property investments. Media news reporting property value inflation prompts property investment, hence 1977 onward of low interest rate property investing followed by high interest rate periods of not announced increased mortgage loan interest charges.
School education’s punishing memory learning, people soon repress bad feeling events similar to increased worrying about increased loan servicing, as worrying (thinking) was repressed during school years, merely complying with bank’s imposed increased loan interest servicing as though complying with school teachers set tasks including homework tasks. Paul Keating’s without warning, sudden recession imposing 5 times from 2 years of 4% interest borrowing to 2 years of 20% interest charges upon citizenry, where’s the value of democracy in such behaviours, Labor party treasure Paul Keating deemed a economic genius by media commentators. Paul Keating as prime minister in the next federal election who was tipped not to win, won the election because Liberal party John Hueson policy to introduce a GST tax couldn’t explain what the GST would be on a cake shop purchased cake. Myself suggesting federal Liberal party says little while more Australian workers party, the Australian Labor Party does the radical difficult changes working class would complain about (strongly/violently protest in street marches) if the federal Liberal party were in government. Gogh Whitlam Labor government gets blamed for starting 1970s stagflation, introducing free university which in 1980s introduced university fees thereafter.
Interest rate increases benefit bank depositors, encouraging depositors not to spend savings on fears of goods and services increasing in price. Depositors savings more than 10 years ago, were supposed to receive 2% above CPI inflation. Banks profit margins are made from the difference between cost of money depositors savings and loan interest borrowers servicing of loans. Many money savers have invested in bank shares, mostly CBA shares states Alan Kohler. High turnover loans due to record property prices and increased second property investors, most of all high property prices encourages new building developments. During low property price periods, new building development would be minimal, having low investment value.
Australian Malcolm Turnbull when being prime minister was reluctant to have an inquiry into Australian banks overly enthusiastic lending practices. After the 2018 inquiry discovered the many inflated lending practices were more about bank executive bonuses greed, a number of recommendations were provided, which Australian federal Liberal party Scott Morrison government seems to have ignored. The few occasion reminders I have heard of the inquiry, AMP charging dead customers fees gets mentioned, not any similarities to how present day banks are turning over loans pushing up share price valuations to record levels, notably CBA shares and/or that land valuations are more bubble on top of a bubble on top of a bubble, which doesn’t have to burst if a long period of wage inflation to re-adjust the value of money down to far lower buying abilities as did during 1970s and 1980s, to allow a future property buying boom period room to increase bank borrowing investment in property affordability, property prices gradually rising, encouraging property price speculation investment.
As few 2018 inquiry recommendations were applied, how corporations maximise profits for share holders excuse up to the limits of corporate law legal interpretations, I speculate little has changed regarding pre-inquiry lending behaviours, only media have not bothered to investigate whom banks are lending money to, whether affordable loans can be serviced.
As present day bank lending resembles unannounced deregulated lending, rather than using mythical increasing interest rates slows/stops CPI and wage inflation, instead re-regulate bank lending policies.
USA 1960s citizenry were driving heavy auto-mobiles consuming cheap fuel, 1970s inflation was partly blamed on OPEC crude oil increase price shock. Australia had a Whitlam Labor government spending to blame for some of the 1970s inflation. Inflation’s 1970s progressively increasing interest rates held land values down as wage inflation increased. 1977 began a post WW2 baby generation first short property buying boom, I can only guess 7% interest rate property purchasing ending in October 1979 sudden 20% interest rate blamed on increasing gold price to US$800 an oz. After interest rates were applied gold price dropped to US$400 an oz. As decades progressed buying booms had lower interest rates. Now at record low interest rates, unable to go lower, will a repeat cycle beginning booms at 7% interest rates after a period of high wage inflation similar to 1970s?.
Labor federal governments are no different to Liberal federal governments where fake interest rate declining inflation policies are acted upon.
I’d suggest during low interest rate periods, during periods of increasing inflation, crude oil market prices are manipulated higher causing media reporting increasing CPI inflation data even if by merely stating increasing CPI inflation exists, that when high interest rates are applied, corporate market manipulators through franchiser set pricing and share market share pricing threats to bankrupt companies by creating information which seriously reduce company share prices by not complying inflation manipulation instructions not to raise goods and services prices, allowing fake interest rate raising bank board theory which stops inflation to appear truthful.
The idea increased interest rates reduces consumption of limited raw materials: coal for steal making; limited available wood for building; importing more goods and commodities than are being exported… increased interest rates for mentioned reasons, hurting borrowers loan servicing margins blaming workers’ wage inflation increasing unemployment, newly unemployed workers mortgage debt servicing leading to percentages of low priced sale of property, turning over real estate to new loan borrowers paying higher interest servicing, media constantly warning of future higher interest rates deterring increased numbers of property investors. Long term reducing property prices ready for future property buying booms when more property buyers are more credit worthy to borrow larger amounts of money.
I would speculate union leaders are under the control of market manipulators mentioned above, whom when union leaders are given instructions to strike for wage increases, union members taking days off from work without pay to protest in streets, street protests broadcast by media to highlight wage increase demands eventually being granted, starting working people thoughts to ask for wage increases, boosting wage incomes for future property buying.
Reasons working class ask employers for pay rises are more motivated by media news suggestions than by individual thought process motivation. As below Michael Moore indicates ancient Roman gladiator fighting entertainment etc. distracted human thought, today’s entertainment industry distractions redirects personal skill ability value to ask employers for yearly wage increases.
I also suggest school education has a significant distraction from children developing trying out theories to be why events happen intelligence, school education force short sentence memory data designed for youth to remember mostly pointless data to submit to regular examinations. Each end of school day’s work, human behaviours not to want to continue performing school activities better felt emotional awareness is for most students a self-programming favourable life long default behaviour. When all institutional learning ends, an emotional reaction to learning new ideas and assessing truthful values of believed ideas, meets with reaction of google: “personality protective cognition” Adam Ruins Everything, Youtube boxing ring psychology analogy theory.
People are unaware they’re being manipulated, yet when explained in detail are resistant to care as memory processing has been retarded by school education and media’s limited intelligence rolled-over information.
New reading:
Australian Bank Fraud and Low Interest Rate Boom Bust Conspiracy.
Below is a USA example of what banks using deregulated banking laws, regulated laws previously introduced after a period of deregulated lending busts, are capable of doing. Which such bad non-existent financial regulation behaviours can influence Australian banking systems as had been indicated during 2018 “The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry”.
A theory could be that country's citizenry want to believe in democratic governments and an idea that founding fathers created a constitution document, enforced by a high court panel of judges, overseen by separate from government and legal enforcers independently controlled investigating media which will without hesitation report through media outlets any corruption relevant to citizenry concerns. With this knowledge, most people relieve themselves from caring, worrying, distracting from every moment of serious thought by experiencing fun laughter self-pleasuring. I say due to years of concentration on school learning limited need to think, students repressing momentary day dreaming distraction from school tasks stress, any time spent on contemplating new theories memory processing brings back school education experiences of mental stress once students having left schools no longer required to learn, thereafter instantly repress any time spent listening or reading new learn-able theories.
I suggest as citizenry want something to remove concerning worrying thought fears, would rather carry-on with having fun, a media news reporting profession provides many scandal stories, at times so many scandal stories one after another that any person enquiring why so many scandal stories happen, my theory being most all scandal stories are about federal politicians whom are somewhat avoiding parliament procedure rules, branch stacking, pork barrelling, a bit of drunken rap scandal on Federal Parliament back room office premises. Late 2021 before parliament ended for the year, behaviour of male parliamentarians toward female parliamentarians were criticised, creating news headlines. No person goes to jail, events are generally entertainingly as it happened simple news to understand, media appears to be doing their job, democracy looks real. I say looks too real to be true, that when real news stories become in short supply, the closeness between share market financed media news editors and politicians, politicians step in and provide news story action scene images of a new or retold scandal story for the next media presented news. Serious news media commentators get to bore readers and listeners creating obvious propaganda judgemental conclusions where human memories reinforcing existing feel good judged self-intelligent memory beliefs, memory beliefs difficult to reverse, ancient Roman gladiator entertainment, Michael Moore’s Capitalism: A love Story documentary describes Wall Street market leaders get aware with deregulated bank lending ripping of citizenry.
Aged 5 years children begin attending school for 13 years, children learn to believe what parents and teachers tell children to believe. Sunday school religious instructors inform children “Jesus is their savour” whom carry such poorly explained human sacrificial beliefs through their entire lives. Children’s early years are filled with the basics of intelligent thought, continued schooling years’ too much to learn, too much distraction from developing more advanced thinking, sports becomes a simple distraction from academic learning stress, that learning stress of too much irrelevant data teaches students to forget much of what is being remembered. Employment bosses tell employee workers what to do to maintain employment wages. Human limited thought involved behaviour to do what has been asked. The punishment of school learning reduces workers desires to learn new skills, increases reluctance to pursue new employment with better wages and/or easier work tasks after having obtained employment.
To this point of discussion I would advise readers to watch through whatever means, Michael Moore’s Capitalism: A Love Story movie length documentary, which explains how many ideas what people believe are not so true. Michael Moore’s documentary was for movie house and television audiences, I state in order to show his documentary certain theories are left out, one of which criticising school education as a human degrading intelligence institution. Michael Moore’s ‘Where To Invade Next’ 2015 documentary shows the difference between USA education to European education, my focusing on Finland’s more liberal easy going to students schooling. Once more I suggest to have Michael Moore’s documentaries shown on media platforms Moore can’t be too critical of school education.
Below, Michael Moore’s Capitalism: A Love Story.
Post year 2000 USA Sub-prime money lenders, uninvited people appearing on people’s front door steps, recommending people to borrow money using home equity as security for loans, working class programmed human behaviour to do as they’re asked or else fear by teachers predominately programmed human negative reinforcement behaviour ‘do as your betters tell you to do’ using 13 years of school education.
Ex President Donald Trump is the best frequently reported political dysfunctional/scandal story after story, scandals allowing the not too intelligent work exhausted news readers and listeners evidence that democracy is real. Donald Trump accusing selective media companies for being fake news, which reinforces a belief of separation between news reporters and politicians. Donald Trump is aware how acting out short sentenced simply worded outrageous statements increases his popularity with his voting followers. An overly stressed school educated adult population rejection of long worded meaningless statements prefer Donald Trumps long pusses between statements exampling “build that wall”. Mean while all sorts of illegal stealing of citizenry wealth including predatory lending secured by property assets where post “the great recession” Australia’s Keven Rudd refers to as the GFC, record low interest rates service loan defaults, assets are sold off cheaply, continues remaining unreported as poorly budgeted regulators doing little, whom I speculate have limited incentives to document and/or report illegal financial activities to appropriate law enforcement, how what sub-prime mortgage money lenders were doing was not illegal. Appointed regulators are aware politicians have election campaign contributing business leaders whom attend boys club meetings, provide favours to each other in which financial regulation problem issues are solved. Appointed by government regulator enforcers whom have limited time in government appointments favour their long term career than to enforce regulation laws which laws may not be drafted conclusively to obtain convictions, hence very few share market manipulators have been heard to have been convicted of illegal activities. What allows above statement worthy of beliefs are Michael Moore’s “Capitalism: A love Story” to be seen employees of Wall Street finance companies working within USA Treasury, that not even USA members of Congress are heard complaining.
As I estimate during late 2004 USA Federal Banking Board began monthly one quarter percent interest rate rises, having seen a chart, deregulated bank loan contracts began increasing interest rates to that heard 14%. I copied a Wikipedia reading on subprime mortgage crises “The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S.” People having these loan contracts I suspect attempted to refinance loans using local banks, only to find banks had investigated options discovering mortgage deeds were tide up in mortgage securities and couldn’t be obtained and/or self-regulated banks didn’t lend money to poor credit worthy borrowers. During Sub-prime mortgage property crash bankruptcy proceedings bankruptcy courts had difficulty in locating mortgage deeds as they were held somewhere as mortgage securities. Another reading stated poor credit worthy borrowers were losing employment defaulting on loans, blaming lenders whom lending to poor credit worthy people, lending money would have normally been declined, hence accused of predatory lending. I have a video file showing president Bush announcing how “money would be lent to coloured people and Hispanics to allow these previously denied loans people a chance to own homes as white skinned people own homes” referring to poor credit worthy people. This announcement was due to increasing money flow to allow white skin people income opportunities to earn money to service existing loans as before the Bush announcement new credit worthy borrowers were declining.
Going back to actor Ronald Reagan 1980s economics Savings and Loans described in Michael Moore’s “Capitalism: A Love Story”. The movie documentary, after a bit of poor people bankruptcy foreclosure procedure dramas, the real notable point is Ronald Regan the Chairman and CEO of Merrill Lynch his life story can be read on en.wikipedia.org. Narrator Michael Moore describes Ronald Regan telling president Ronald Reagan while addressing Wall Street brokers on the stock exchange trading floor with a speech Regan told Reagan to “hurry up”. Regan became USA treasury secretary providing tax cuts for the rich and eventually USA secretary of state. Moore stating “corporate America and Wall Street were almost in complete control”. I witnessed several times during the early 1980s a Ronald Reagan announced the new policy of “increasing interest rates to above inflation percentages to reduce inflation” hence why I say 1970s interest rates were said to be below inflation percentages while inflation percentages increased. Moore shows, previously to 1980, actor Ronald Reagan had been classed as a “b” grade actor, seen promoting advertising products on television, I had heard years ago Reagan was a public relations man for a corporation vaguely mentioned as General Electric by Moore’s presentation, years ago I heard the corporation made Reagan president for years of service to the corporation. I have also heard 1982 Reagan deregulated banks that many banks became Saving and Loans.
I’d state if economic conditions were planned to be changed for the worse to the masses, (citizenry) citizenry should be first convinced the previous period was unsustainable 1970s inflation. All the through the 1980s inflation continued. I speculate after short periods of inflation while low interest rates were in place, introducing high interest rates which should increase inflation being increased expenses upon businesses and reduced business turnover, the power of Wall Street on big corporations whole sale suppliers, told retail businesses through franchise agreement contracts franchisers control retail prices, and CPI grossery outlets not to increase prices therefore the increasing interest rates policy is falsely used to cause loan defaults housing mortgage bankruptcies. As USA and Australian economies have a high percentage content of money lending for house building and renovations, when lending begins to slow after interest rates rise and unemployment rises, property loan defaults increases, resale of property increases, increasing new loans and property sale commissions, state government stamp duties.
Michael Moore’s Capitalism: A Love Story’ mentions how before 1980, the rich were highly taxed. I pose that after WW2 ended, USA were running a Cold War with communist economy Soviet Union. Rich people don’t like communism as communist governments take all privately owned assets as state owned. Media USA government scan propaganda reminders:
https://en.wikipedia.org/wiki/McCarthyism
USA federal taxes were providing finance to build 4,000 B52 bombers, a pipeline through USA to supply jet fuel to many air-force bases, now used to supply passenger commercial air-ports with aviation fuels. USA corporations were making money, the rich buying shares could invest in. Hollywood was making black and white B grade movies dramatising USA poverty, many scripted by communist ideology thinkers, hence senator McCarthy was accusing Hollywood of promoting communist ideology.
In Australia, during 1950s a man named Bob Santamaria:
https://en.wikipedia.org/wiki/B._A._Santamaria
My mother told me many years ago on my mentioning of his name, while listening to radio programs, without notice, suddenly Bob Santamaria would be heard making statements entitled Reds Under Beds, how stock piles of guns were hidden under beds ready for instructions from Mosco to take over the government. I can assume Australian rich people were willingly paying taxes to maintain being a capitalist country. Building dwellings and working class owning property was more a tactic to encourage working class to support capitalism rather than communism. Because of the 1930s great depression and what may have happened with interest rate fluctuations Australian interest rates were fixed until 1970, can be seen on an RBA mortgage excel sheet.
All this worrying about communism created support for military subscription into the Vietnam war, a war based on a domino falling theory which because Indonesian leaders had aggressively purged Indonesia of communists, the domino falling theory wasn’t realistic, proven to be false after 1975. Because of USA war police action tactics also used in Afghanistan 2001 to 2021 war, the Vietnam war couldn’t be won, known since 1965, seen on the movie The Post.
The great belief in democracy, the rich finance both political main parties through corporations and tax exempt trust donations. When presidential politicians leave office, ex-presidents give speech tours for US$70,000 a pop is the final bribe pay-off for services to corporate USA.
The next important issue related to year 2000 thereafter being where were all these investigating media journalists whom were often reporting on politician sex scandals? Why didn’t journalists report the pit-falls of borrowing money from unregulated lenders, being aware of the 1980s Savings and Loans unregulated lenders. Journalists merely had to read loan contracts seeking advice from experts to become aware of future consequences? My conclusion being media news TV program producers and print publishing editors were restricting information focusing stories on more simple easy to understand distractions. Where were those democratic politicians? protecting the well being of constituents. The movie “The Big Short” indicated the experts didn’t know what was happening until eventual market crash problems were too late to end lending practices. The movie is little more than propaganda lies.
I have a theory which can be proven that DOW Jones Industrial average index movements are manipulated that large index movement changes happen with regular clock work, one calender schedule I refer to as the seven year itch, named after a first seen in November 1952 George Axelrod Broadway play turned into a Marilyn Monroe staring actress movie “The Seven Year Itch”. If by counting backwards from the year 2015, a year China share market caused a significant decline in world share markets, by seven year jumps: 2008 mentioned above; 2001 New York Trade Centre towers collapse, share market decline; 1994 end of a world recession, Australian bond market yield rising from 6% to 10% share market decline, beginning a share market boom period fuelled by money markets gradual reduced bond yields to year 1999 4.5%; 1987 share market crash; 1980 high interest rates triggered by USA Federal Banking Board raising interest rates strengthening USA dollar against gold price inflation valued in USA dollars; Something happened in 1973 causing a significant fall in share markets: 3 times 7 = 21 bringing the year to 1952. This information is useful when considering year 2022 I suggest is scheduled to be a significant market decline, people in the know are aware of, cashing up from previous market peeks, prepared to wait for the beginning of the next share market run up. During 2020-2021 years the USA DOW Jones; Nasdeq; S&P 500... have held record high indexes, I believe merely waiting for 2022 second half decline.
Other share market decline dates seem to be decade year endings with the number 9: 1929; Germany invaded Poland in 1939; 1969 began 1970s inflation; 1979 was the year USA$800 gold bond yield interest rates increased; 1989 third quarter was the year which began 20% high interest rates; 1999 DOW Jones Industrial in July was 14,200, by October 1999 DOW was 7,200, by January 4, 2000 DOW was 14,700; 2009 was not a favourable year for share markets; 2019 seems to have escaped market declines until yet Covid-19.
I had been watching SBS television presented at midday USA “Nightly Business Report” since from the program’s early days, I can’t remember what year I first watched the program other than early to mid 1990s. I taped programs on my VCR to watch at my convenience, I still have many edited segments of “Nightly Business Report” programs going back to 2006 captured by a PVR hard disc drive recorder. Burnt on DVDs, recently captured on backup hard drives. My following financial news is more a hobby rather than a deemed difficult work, even though very few useful comments are stated, worth remembering, I have many hours of computer edited finance news mainly of the Nightly Business Report prier to the program being ended on SBS television. Most kept video files are about what happened during the Sub-prime and US$700 billion government bailout.
Much of the above and below information can be seen on a Michael Moore 2009 almost 2 hour movie length documentary entitled “Capitalism: A Love Story”. The normal human reaction to watch movies are to watch: fast moving action chase scenes; personal short one line statements about easy to understand ideas; behaviours school children would have done after attending school to avoid feeling school learning stress traumas.
During my school education years, I was not taking any serious notice of my school learning, didn’t care to pass examinations as I heard very few meaningful knowledge related to future decisions, if school learning would have been about skilled thinking and/or investment risks I would have taken more notice. A high school science teacher ran an electronics course I wanted to attend, the teacher rejected my attendance, yet at my age of 32 years I knew a man who instructed 1960s school leavers in Australian branded television manufactures how to repair valve black and white televisions. During mid 1980s, I read volumes 1 and 2 Tandy 2 electronics books entitled “A.C. Analyses”. The man instructed me on how 25 line frame PAL televisions worked, PAL phase alternate line. He eventually commended me for my quick ability to understand the science of television in some instances I had more understanding than himself, analysing failed components by reading/following schematics. My point being I have no school learning stress analysing thinking traumas interfering with cross referencing previous memory analysing.
As media presented finance news doesn’t usually have anything to do with future outcomes, instead merely reporting that days share market movements and speculating bank board interest rate changes, finance journalists interviewing fake market experts rambling on the same market theories adding up to nothing, with little to judge comparisons, most finance news I suggest is ignored by almost all citizenry, including share market investors.
School students need to pass examinations, remembering learnt information being no more useful to students future than learning “The Chase Australia” answers to questions data, students don’t care to remember knowledge after school education ends. This only caring to pass examinations while experiencing punishing mental stress, as young pre-school children would repress memories which create feelings of bad repressing memory stress, youth continue the same repressing memory behaviour all through schooling years, students having left school, human behaviours are more wanting aged 5 years fun with frequent laughter to aid repressing school learning traumas than understanding serious knowledge. The evidence for such a statement lays with how young adults whom were believed to be happy laughing and hyperactive suddenly commit suicide, friends and relatives not aware young adults were suffering mental depression. An old name for Bipolar being my described analyses as overly fun hyperactive with sudden periods of anger reactions previously labelled Manic Depression.
In the “Capitalism: A Love Story” documentary, President Bush in 2008 addresses a nation of government controlled curriculum school educated people whom I say are conditioned to ignore serious headlined information therefore what Bush was stating prepares citizenry to ignore future stated serious economic collapse information, allowing fear of stated collapsing markets to receive a 2008 US$700 billion bailout, with congress passed laws making investing where the US$700 billion went illegal, not mentioned in Moore’s documentary.
I state to get Michael Moore’s documentary shown at movie theatres and on many world television stations, much of the details are left out, I am attempting to add to this reading.
There are many people whom take on serious ideas like refusing to take vaccines whom believe in government conspiracies, such people take to simple headline based ideas, whom feel their anger is being justified, anger being a distraction from a degree of school induced manic depression. When mentioning more complex bank deregulation, such people: walk away; change subjects, often creating lies to feel they’re putting one over on the person wanting to talk about more complex ideas; merely get angry. I suggest symptoms described reflect repressing serious ideas, as serious ideas increase human thinking processing data into organised cross referencing memories early childhood school teacher adult speed spoken forced hurry up simple data learning, young children found to be too difficult to perform comprehending adult speed teacher’s spoken sentences, repressing inability to comprehend behaviours using avoidance tactics mentioned within this paragraph. People whom reject Covid-19 vaccine injections whom believe simple Internet scare stories whom refuse to reverse incorrect beliefs, dumb human behaviours were educated in school system curriculum which failed to allow human childhood emotional decision making to fade, that school learning mental stress, forced early human childhood behaviour to be overly concerned about how they felt, how information felt, human childhood behaviour programming repeatedly repressing bad feeling emotions, one bad emotion, a feeling of being wrong, of answering questions incorrectly, quickly repressing being incorrect, known as denial. The more examinations are forced upon children the more incorrect denial is reinforced. Google: “personality protective cognition” Adam Ruins Everything.
Is this reading about banking or psychology? I state bank finance lending somewhat depends on borrowers poor risk thinking skills. Somewhat explains why so many USA high risk sub-prime borrowers existed, enough high risk borrowers to cause a world Great Recession. December 1, 2021 for the year so far of 2021 has Sydney house prices data increased at 22%, what can I say about house prices? Since 2015, media are at least once a week reporting house prices have been increasing, reporting auction bidding price increase percentages. Whether over the long term percentages were correct, news media announced percentages have persuaded auction bidding buyers to take risks before property is one half% more expensive the following week. That record low interest rates and bank’s willingness to maximise lending to borrowing customers are fuelling property price increases, seems all very deregulated hype influenced, which when borrowing capacity ends, so does the turnover of money fuelling wage affordability end. Banks have an endless supply of money to lend as money doesn’t leave banks as a whole, as property is sold so does sellers create new depositor accounts and/or deposit accounts are vastly increased providing capital to lend to new borrowing customers. Immigration of university students whom on graduation are asked to stay in Australia, providing high paying wages in professional employment, adds to the pool of not in debt competing property buyers saving for a deposit, pushing up property prices, delaying if any a property price bust.
Exampling USA deregulation bank lenders encouraged by media announced sometime in around 2002, President Bush appeared in an address to the nation stating to “lend money to low income African Americans and Hispanics, encouraging home ownership”, during a period of unregulated banking, lenders providing loan contracts containing statements on how interest rates could increase without the governance of US Federal Banking Board. After a period of lending, loans interest rates acquired 14%, mentioned above up to 20%, a percentage property mortgaged secured loan interest rates were bundled into mortgage securities contracts and given S&P rating agency triple A rating and sold to many corporation pension funds whom only invest in S&P rating agency triple A rated investment products, including General Motors worker pension fund.
Eventually property valuations collapsed, the collapsed property market was realised by the DOW Jones Industrial Index in mid 2007 decline, The Dow Jones Industrial index returned to previous highs by late 2007, loans eventually labelled Sub-prime mortgage lending, securities. By mid 2008 Lehman Brothers collapse bankruptcy USA federal government wasn’t going to bail out, media serious news backed by no more evidence than finance news reporting interviewing Dow Jones Industrial Wall Street stock brokers and corporation CEOs frequently reported by Australian finance reporters and federal Labor PM Kevin Rudd GFC crises warnings, promoting stimulus financing school libraries and roof ceiling cavity insulation.
By listening to “Capitalism: A Love Story” 2008 USA President Bush Treasury management were linked to Wall Street Henry M. Paulson chairman and CEO of Goldman Sachs USA treasury secretary 2006 to 2009, much the same story as 1980s Ronald Regan USA treasury secretary. Wall Street connection to executive government, such corrupt activities USA citizenry could acknowledge yet without media prompting, USA citizenry ignored the seriousness of the what was happening.
Michael Moore’s “Capitalism: A Love Story” begins with Ronald Reagan, “Savings and Loans”, Wall Street connection stories through to November 2009. I state examples could have exampled 1920s’ boom ending with the 1929 Wall Street market crash resulting in 1930s world depression years.
During president Ronald Reagan years of deregulated banking I heard began in 1982, USA Federal Banking Board were providing sudden interest rate increases after periods of low interest rate lending, fuelling the many bankruptcies and loan extension re-contracting. Many USA banks converted to Savings and Loans company lenders whom I recently heard from Alan Kohler had a Savings and Loans bankruptcy crises in 1990. Myself witnessing years of finance news, what interest rate increases USA experiences so Australia follows USA’s lead. Paul Keating’s 1990 “recession Australia had to have”. As that early 1990s high interest rate recession coming off a 2 year low 4% interest rate, bankrupted Alan Bond’s Bond Corporation plus several other Australian share market traded investment corporations, USA Federal Banking Board suddenly introduced high interest rates off similar 2 years of low interest rates property speculation, intentionally bankrupted USA Saving and Loans, etc. Banks don’t lend their own money, banks lend other people’s money, hence speculative lending risks are on depositors accumulated wealth.
Myself remembering watching USA Nightly Business Report, post 2008 the many USA banks that went bankrupt averaging one bank per week, depositors lost all their savings, which a maximum of only US$250,000 per person depositor was compensated. If having less savings, the same amount would be compensated. Depositors were advised to open accounts for all family members including children. No other suggestions were stated, including opening accounts in more than one bank, spreading the money within several banks up to the US$250,000.00.
Human behaviour to ignore serious knowledge that concern our own well being, quickly repressing any instant feeling of seriousness, school education and media serious often irrelevant concerns, I’d even add commercial television’s 20 minutes of repetitive same product commercials out of 60 minutes of advertised programming, humans escaping acknowledgement, allows political collusion with finance providing entities to keep working class needing employment to service acquired debt, keeping labour willing to do physically exhausting labours, on a dream incentive of owning a home.
Media entertainment prime time competitive game shows, program audiences frequent applauding and/or laughing at almost every end of sentence statements, infectious behaviours resembling human desires to distract from their own school learning mental depression avoidance after school behaviours. Canned laughter and applause electronics heard in UK programs which are so loud compared to Australian programs of similar entertainment formats, examples induced behaviour patterns forced on human behaviours. UK PM Boris Johnson seems to act as though he spent many hours during his youthful years watching Dr WHO. My beliefs to increase and/or maintain human intelligence down to simple limited idea beliefs, corporate and political leader systems desires to control citizenry’s ability to begin to realise reality.
As industrial manufacturing becomes more mechanised, unemployment gets reduced by inventing foreign wars, exampling President Bush accusing middle east based terrorism, sending military forces into Iraq and Afghanistan, the invasion creating more terrorists than 2001 estimates. As most all terrorist bomb explosions happens in the 2 mentioned countries it’s not difficult to believe USA leaders were financing terrorist leaders whom only bombed local populations creating fear which created a lower than normal birth rate decline, terror population control, meanwhile terrorism in USA was none existent.
Lending regulations having been removed by President Bill Clinton, during his second term, money lender contracts stating borrowed money interest rates are not tied to USA Federal Banking Board interest rate changes, eventually after a period of lending using stated contracts, interest rates increased to 14% plus, to allow a percentage of the 14% plus interest rate to be used to create Sub-prime mortgage securities, which as property assets prices fell bottomed in 2007, mortgage securities were deemed worthless, one year later Lehman Brothers declared bankrupt, other Wall Street and Main Street corporations bailed out with US$700billion an introduced passed by congress law stating further investigation to where money went was illegal. All seems a perfect scam when citizenry are incapable of realising a scam while waiting for trusted media to expose the scam for what the scam was. No evidence can be provided, therefore Sub-prime mortgage security bankruptcy scam can only be called a theory. My supporting knowledge particularly about 14% plus interest rates not linked to USA Federal Banking Board detailed ideas didn’t comes from above mentioned Michael Moore movie length documentary.
Low interest rates are not that good for borrowing customers, as lenders lend money to borrowers on ideas that purchased assets mainly property increase in value, being that borrowers can borrow more money which can be serviced with low interest rate servicing by the same wage income as would be serviced by high interest rate reduced amount of borrowed money, property asset valuations depending on interest rates, demand verse supply and long term wage inflation. During very low interest rate periods, increasing numbers of borrowers whom want to buy overly priced property assets compared to long term average interest rate history. Property buyers are more likely to increase capital gains when borrowing money during high interest rate periods. High interest rate periods reduce competitive buyers ability to borrow money to be serviced while interest rates are high, plus because interest rates are high, high interest rates generally means wage growth is high that in future years property prices will rise as workers increase wages providing high income ability to service already owned higher priced property. The wealth of property owners is the difference/margin between property valuations and outstanding loan and interest liability expenses. As interest rates rise property valuations fall that personal wealth margins reduce, recent low interest rate property buyers come under pressure to increase wealth margin by increasing bank servicing payments to ensure mortgage loan liabilities don't exceed mortgaged property valuations. The movie "The Big Short" movie actors described how Sub-prime money lenders had no moral compass, that financial markets were only concerned with trading Sub-prime securities broker fee profits, the movie supports events really happened, yet the movie could be considered as propaganda, convincing interested watchers news reported events weren't an establishment conspiracy intentional scam ripping off pension funds and investors in companies similar to Burnie Madoff, instead the movie provides a real anecdotal acted historical recorded truthfully described set of events.
Past history doesn't always provide future correct predictions, now that interest rates are low, wage growth is low, and more workers work in part time employment, struggling to earn a liveable income, to obtain that high wage earnings, pushing teenagers into higher education college/university fees debt. Higher education delays earnings income by the years spent in higher education institutions, that most instances high school should have been least mentally stressful allowing teenagers to be more aware of new ideas.
Fewer years spent in high school allowing younger teenagers to find employment, or attend higher education, unknown side effect that women will begin having children at younger ages.
Borrowers confidence in democracy government laws enforced by appointed regulators, during borrowing booms lasting for several years, many borrowers complaints can be heard and/or read in news stories. Such complaints about lenders go unresolved for many years, eventually resulting in inquiries, complaints continue to go unresolved as lenders are waiting for inquiries to end and judgement recommendations finalised. delay delay delay. I suspect compensation is delayed to witness whether regulators fine lenders for not actually compensating ripped off borrowers.
I am not a licensed financial advisor, I have not provided any advice to readers.
Attached website ABC investigating reporter Stephen Long.
Direct link to Stephen Long Banking Fraud.
http://www.abc.net.au/news/2016-04-21/fraud-rife-in-banking-system-economists-say/7348176
Actual Lateline image.
http://www.abc.net.au/news/2016-04-21/are-the-banks-massaging-their-numbers-to-make/7348286
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Bank Credits
A theory where money is lent by banks and other financial institutions, in this reading, reading will referred to every finance provider as banks.
Banks lend money to property investing borrowing customers using bank cheques or modern Internet money transfers. Bank cheques merely represent an obligation to transfer bank credits to accounts bank cheques are deposited in. Credits transfer to another account, account could be in the same bank or another bank.
Bank cheques deposited in banks and money tranfers, increased credits in bank accounts becomes new balance sheet credits, credits becomes new capital to lend to new borrowers. Money credits never leave a banking system, so why would banks need to express that banks borrow capital (money) from overseas banks to obtain lending capital to lend to borrowing customers? Bank credits move from account to account, and only leave banks balance sheets when credits are converted into cash. Cash is used less as people use credit and debit cards and stored credit remaining on bank balance sheets. Again... I say, everything is a lie. To increase money supply lending to customer borrowers, money merely needs to turnover at faster more frequent customer borrowing, often preferred low interest percentage rate periods as purchased property prices increases during low interest rate periods, more money is lent using same limited property assets. Property asset valuations in monetary terms appears on bank balance sheets valued at borrowers loan liability. Increased bank depositor credits gained by selling property could be argued as an unwanted interest payment to depositors liability banks don't need therefore don't want, banks offering alternative non-property investments.
On an almost never heard of by media, establishment controlling everything theory. I believe, aided by a media quick comment in 1999, banks pay interest rates to depositor customers to reward depositor customers for not spending the money.
In the economic cycle, depositor Term Deposits interest rate percentage returns provide high incentives to save money, as in the 1990s. After year 2000, as an example, eventually term deposit interest rate percentage returns become lowered as interest rates decline. As depositor customers were accustomed to high term deposit interest rate percentage returns compared to wage inflation, during low return periods, bank customers seek financial adviser advice. Bank customers being lead into higher risk investments. Share market slump become, opportunities for risky "investment companies" investing in market shares to provide higher than bank interest return promises to investors. During share market slumps, margin calls require investment companies to sell shares and/or to declare investment companies to be insolvent, beginning a long period of insolvency accountants charging fees to administrate insolvency legal procedures. Investors not seeing any investment money returns as banks have first in line of any money remaining in investment company assets. Investment 20% high returns reflects risk margins investors were not properly informed about, informed can mean investors weren’t correctly thinking what risks were involved. As long as investment company purchased shares rise and pay dividends investors invested money 20% returns after management fees and bank interest only interest servicing are completed, investors received their annual 20% interest rewards. When market slumps happen lasting for a period, calculations of share valuations are carried out, that when investment companies guaranteed 20% returns and bank loan servicing can’t be fulfilled, insolvency can be declared. The process
of insolvency procedures accountancy fees.
I would also assume, not being researched, any insurance obligations mentioned to protect lost money on investment companies by investment advisers, banks who except responsibility for advisers' bad advice to bank customers, are said to be taken care of by associated banks. Banks assurances last forever with few proven compensation claims provided, mentioned by media.
Continued low bank deposit interest rates, investors awareness of wage inflation, what was once said a decade ago to have 2% above CPI inflation bank term deposits interest rewards, now is more like 2% below CPI inflation. Superannuation funds allows share market profits reduced tax liability. Investing in share market shares dividend returns and/or share company capital gains, looking on the bright side of life investing savings options, has risks involved. Any investor in AMP in year 2000 priced around $20.00 a share, late 2021 is priced around $1.00 a share, capital gains loss. Any provided dividends has declined over the 21 years.
A resent ABC television finance stated 10% of retired elderly are self funded. I’d imagine self funded retired have visited a financial adviser to obtain financial investment advise. I’d also assume advise was given to mortgage home, using extra cash to invest in shares which provide at least 5% dividends. Profit margins of at least 2% are added to self funded retired. During covid-19 pandemic shares market indexes have bounces around without declining lower than 10% of record highs. If record high property suddenly fall to significant lows similar to sub-prime property market, share markets indexes fall, holding declines, banks will no doubt make margin calls on retired mortgages on homes share market investors. Watching Michael Moore’s Capitalism: A Love Story, won’t advise audience watchers yet being less rick adverse could be a wise outlook on future mortgage on home backed investing. My only advice being don’t follow the feel good emotional decision making Neanderthal wishful thinking.
You the reader have reached the bottom. Above history statements and theories are often without evidence yet influence human behaviours. School education beginning at young ages I say have used simple early child learning assumptions repeatedly to reinforce childhood learning behaviours aided to stand alone data which has few thinkable connections with continued data, exampling The Chase Australia, a full stop dot ends a single thought, adding to additional thoughts to previous thoughts causes fearful confusion. By starting school education at a young age, any inability to understand teachers statements, fearful emotions are created and repeated when similar instances are experienced. Such fearful emotions may continue all the way through life, hence creating learning difficulties. A childhood learning behaviours to repress information which creates fear traumas, fear of increased stress, “nothing to fear except fear itself” places human behaviour on a behavioural pathway of keeping everything simple in fear of being court feeling fearful emotions.
Television media news and entertainment stories have made citizenry familiar with wars and death during wars. Simple human behaviour not to consider wars are about human sacrifice, reducing future populations to allow sustainable food resources. Periods of war often reduce women’s birthing, instead people would rather have fun, talk to each other about simple things. Politicians forcing wars upon citizenry, citizenry merely believe what excuses politicians provide without question, avoiding feeling fearful emotions of understanding, to merely return to having childlike fun, self-medication. Citizenry whom have mental depression issues are more likely to behaviour in a repressing fearful emotions behaviours. School students and military personnel whom have mental depression issues are more likely to be more manageable, believe any authoritarian lies that cause the least additional fearful thought mental depression traumas, behaviours young children would have performed.
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