En Passant

Two things happened on Tuesday that caught my attention. The first was the decision of the Reserve Bank of Australia to cut the cash rate by 25 basis points or 0.25%, from 1.50% to 1.25%. According to the RBA, the cash rate is ‘the overnight money market interest rate.’ It is essentially the rate the […]

  My article in Solidarity magazine on the Banking Royal Commission. It’s the economy, stupid.

  In Independent Australia I discuss the Turnbull Government’s ongoing commitment to protecting the banks’ profitability, even gifting them billions in tax cuts, as the Banking Royal Commission continues to uncover “utterly shocking” truths.   https://independentaustralia.net/politics/politics-display/the-bankingrc-the-turnbull-government-and-protecting-the-big-four,11425

Public anger builds and banking oligopoly and corruption are set to continue as Turnbull announces banking tribunal instead of a royal commission.

To read my full report in Independent Australia click through here to get to the article. The big 4 Australian banks said ‘sorry’ so Turnbull announces tribunal instead of Royal Commission

My latest in Independent Australia. The super profits of the Big Four banks continue to impact on the rest of the economy and Malcolm Turnbull’s solution of ordering them to appear before the Economics Committee is not likely to make them give up those profits.

Instead of a tax on bank accounts, how about a super profits tax on the most profitable banks in the world. Price control their offerings too.

Of course, any controls we can put on the rich and powerful—to curtail their ability to soar ever higher into the stratosphere of wealth—are a good thing. These are the same people who tell us that we have to swallow austerity in order to pay their bills.

But bank scandals, corruption and crisis will not be stopped by regulation. They are built in to the system, a system rooted in the drive for ever greater profits. This is how capitalism works.

The Labor Government beat the banks with a wet lettuce for failing to pass on the full RBA rates cuts.

Instead why not tax their super profits and redistribute some their profit to the working class in the form of better social services like health and education, increases in Newstart and tax cuts for workers?

And, given you can’t trust the banks, something their actions have shown, how about regulating their interest rates and other offerings? Price controls over interest rates looks like a good start.

Get some perspective, people! Don’t you know the banks are in a parlous state and they need our sympathy and support in their hour of need? After-all, the big-four only made $24.3 billion in profit last year – which would leave barely $14 billion remaining after, say, funding the total investment in new public transport infrastructure in Australia and New Zealand made in the first decade of this century.

So here we have the most profitable banks in the world, the big 4 Australian banks with $31 billion in profits, not prepared to pass on a 0.25% overnight cash rate reduction to their customers on their home and business loans.

Soak the bastards, Treasurer. Hit them with a super profits tax, or threaten to do that.

And when they claim that that would impact on their costs of lending and would need to be recouped, threaten them with interest rate controls and mention you might set up a people’s bank. Oh, I forgot, we used to have one of them until the previous Labor Government flogged it off.

Maybe we should nationalise the banks under workers’ control instead.