Gillard, Rudd, Abbott don’t represent ordinary Australians. They represent their own egos and their rich mates like the banks.
Successive LibLab governments have set up Australia’s big four banks, Commonwealth, ANZ, Westpac and NAB to be Australia’s uber-rich elite. These four banks dominate Australia’s home loan market; they make obscene profits from ordinary Australians and pay their management massive multi-million dollar salaries.
The Commonwealth Bank was founded as the Australian ‘People’s Bank’ way back in 1911 and established with financial capital by the government of the day out of Australian taxpayer wealth.
The Labor Government under Keating orchestrated the selloff of the bank in 1996 reaping $5.15 billion for Labor’s coffers. But the $5.15 billion came from a public asset it was not theirs to sell. The bank is now valued at $16 billion, triple the value a generation later, but the wealth is now in private corporate hands.
Today in the Sydney Morning Herald it is reported that these four banks make on average $71 million profit a day. Their combined profits are likely to exceed $26 billion this year.
Labor and Liberal governments alike have deregulated Australia’s banking industry allowing the big banks to bully and take over the smaller banks, building societies and mortgage lenders, so that now there are really only four big banks controlling Australian money. There is no competition in Australian banking. It is has become an elitist private cartel.
This is most evident every time the four of them mimic the others’ interest rates. They repeatedly fail to pass on Reserve Bank interest rate cuts in full to Australian borrowers, pleading tough conditions, yet year on year announce record profits. These greedy four know they are government guaranteed, demonstrated most blatantly by Labor’s Kevin Rudd in October 2008, when he unconditionally declared that the entire deposits of four banks some $800 billion were guaranteed by his government (that is by Australian People, again).
It was not his bloody money do do that! The four big banks didn’t have to do anything, not even reduce their loan risk exposures. Rudd’s financial recklessness has been well acknowledged by both the Reserve Bank and APRA that his off the cuff unconditional bank deposit guarantee was “non-compliant” with international best regulatory practice because the absence of a risk-based fee, amongst other things, “created a high degree of moral hazard.”
Labor is one big Moral Hazard!
So for the greedy four it was business banking as usual, and now has shaped up nicely as another record profit as usual. Labor favours for big corporate mates as usual.
Yet since 1994, the Commonwealth Bank exposed itself to a 50% share in Indonesia’s PT Bank International, in 2005 it bought sizeable stakes in two Chinese banks, Jinan City Commercial Bank and Hangzhou City Commercial Bank, then in 2006 acquired the Colonial National Bank of Fiji.
The risks all guaranteed by Australia taxpayers. Yet the Commonwealth Bank was 30 per cent exposed to the the financial collapse of Storm Financial in 2009. With the global credit crisis, these four Australian banks have had billions exposed to sovereign risky Portugal, Spain, Italy and France. In 2011, the four banks were exposed to French banking sector default risk approaching close to $11 billion.
Now their exposure to highly indebted Chinese banks is an issue. Australian banks are too big to fail yet out of Australian government control. And who suffers if they fail? Ordinary Australian’s when LibLab governments bail them out using taxpayer wealth. It is so reckless and irresponsible.
Vote Liberal or Labor and you perpetuate Australia’s banking cartel!
Vote Liberal or Labor and you perpetuate Australia’s banking cartel, the privileged elite, who control 83 per cent of Australia’s home mortgage market. You support a banking sector increasing sacking its Australia workforce for cheap Third World labour.
The Finance Sector Union says the big four cut more than 3300 positions last year, and 1300 jobs so far this year. ANZ iis planning to sack 590 bank employees in favour of Philippinos and Indians. It is all so that these four greedy banks feed their private and corporate shareholders.
Banking Jobs for Australians !
But vote for Australia First Party and we will regulate Australian banking to minimse their profits and to put an end to their anti-competitve greed. We will re-establish a national government-owned People’s Bank to provide access to affordable finance to Australian small businesses, Australian farmers, Australian industry and to Australian home owners. We will encourage a return to personal savings for ordinary Australians.
We will mandate that only Australians be employed in the People’s Bank, that it remain in public hands in perpetuity and that it not be exposed to any foreign interests.
We will ensure that Australia returns to the envied classless society it once was before Labor and Liberals flogged off our great public wealth that our ancestors built up over generations.
Restore the People’s Bank of Australia
..of the people by the people for the people.