Higher returns for bank depositors, lower debt for government. Here’s the answer. With the banks sacking thousands of Australians around the country, it’s time to end their cosy club controlling debt markets. Australia’s Treasury note market is closed to ordinary citizens while the banks buy government debt at auction and take the spread. We put the case to Treasurer Jim Chalmers: let Australians buy Australian government securities directly, as Americans can through Treasury Direct. They would earn more than a term deposit, and the government would save billions. The only obstacle is the banks.
Chapters:
00:00 The Debt Problem
00:59 The Freebie
02:00 The Cozy Club
03:04 The Debt Market
04:08 Our Collateral
05:12 Treasury Notes Explained
06:13 The Auction
07:14 The Yield Maths
08:30 CBA Deposits
09:35 Bank Objections
10:37 The Cartel
11:39 Access for Taxpayers
12:46 Thanks and Sign-Off
Articles Mentioned:
End the banks’ grip on debt markets, let citizens in / https://michaelwest.com.au/end-the-banks-grip-on-debt-markets-let-citizens-in/
Verging on Ponzi: how the banks are rorting the RBA’s big bail-out fund / https://michaelwest.com.au/verging-on-ponzi-how-the-banks-are-rorting-the-rbas-big-bail-out-fund-2/
Ratings agency warns on record government spending / https://michaelwest.com.au/ratings-agency-warns-on-record-government-spending/
Patreon: https://www.patreon.com/thewestreport
Website: https://michaelwest.com.au
Michael West established Michael West Media in 2016 to focus on journalism of high public interest, particularly the rising power of corporations over democracy. West was formerly a journalist and editor with Fairfax newspapers, a columnist for News Corp and even, once, a stockbroker.
