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Mobydisc said..
Interesting. We kind of had a UBI during the Covid lockdowns and the job keeper payments.
This resulted in Scott Morrison putting pressure on the RBA. The government ran out of money and needed around half a trillion dollars to keep the lights on. They tried to raise the money with a bond issue but the interest rate was too low and no one was interested in buying the bonds.
So the RBA was forced to create hundreds of billions of dollars out of thin air, then hand the money to commercial banks under the proviso they use the money to buy the bonds.
It is such a corrupt act. This act caused inflation which harms many of us. Of course the media is so hopeless they follow the government line inflation is caused by greedy shop keepers.
If we had a UBI we could look forward to massive inflation and widespread poverty in Australia.
Is there any source for this information? It sounds like a child's understanding of economics again. I could be wrong of course, but I would like to see a source for this. Was this created by someone in a pub one day? Why would they create money to give to people to buy their bonds instead of funding it themselves?
Inflation.. why does no one seem to understand that it is a normal part of the economy. HIGH inflation is a problem, but inflation in of itself is normal and preferred.
Governments can create money as much as they want. If it gets to a level where others see it is erratic, the currency dives in value. On the other hand if others see the economy folding itself in half, the currency also falls in value. But funnily enough, if money is created and the economy is looking positive, the currency is not affected badly.
If you don't have something like Job Keeper, the whole economy falls apart. People get layed off left right and centre as people cannot fund it. Employers have to lay people off, and guess where these people are going to go to get the money to live on? If we had no Job Keeper we would be spending years climbing out of the hole and no one wants that.
"As of 15 August 2021, the ATO's data stated that net payments totalled $88.82 billion ($69.97 billion in the original period and $18.85 billion in the extension period). A total of 1,068,856 entities had applications processed under the scheme. An average of 3.6 million individuals were estimated to have received payments each month in the original period and 1.8 million unique individuals received payments in the extension period."
This story above sounds like a bit of a conspiracy theory. Creating money to give to banks to buy bonds? You know that bonds typically contract the supply of money? People/institutions give this money to the government with the expectation that they would get a certain yield. It just doesn't seem to make any logical sense.
Youngbreezy
> 9 months ago, 9 Jun 2024
