The Commonwealth of Australia is a most unique country in the world.
But how come it was so resilient during a Global Financial crisis?
There are two simple reasons: our form of Parliament and a Government owned Central Bank Reserve.
The Parliament of Australia was derived from the British, Canadian and American systems to form a uniquely Australian system. It is largely based on the British Westminster System, adopting many of its practices and precedents, but with a similar structure — House of Representatives, and Senate — to the U.S. Congress. The checks and balances ensure an effective democratic system.
Our founding Fathers of this nation took over 10 years to federate the six colonies and form the Commonwealth of Australia in 1901.Their deliberations and founding documents were very wise indeed.
One of the key founding principles was the desire that the Commonwealth of Australia be just that: its Common Wealth is for all its citizens. With this in mind, the Australian Government was not able to grant private enterprise ownership of our Central/Reserve Bank, unlike that of the United States Federal Reserve.
Because the Reserve Bank of Australia is not owned privately, it’s driver is not to maximise profits as do almost all other Central/Reserve Banks do. It is currently governed by the Reserve Bank Act 1959, which was approved by the Australian Parliament. The Reserve Bank Board’s duty stated in the Act, within its outlined boundaries, is to ensure that the Bank’s monetary and banking policy is used to help the Australian population.
This should be accomplished through consultation with the Government and so in the Reserve Bank Board’s opinion its powers are used to help with:
(a) the stability of the currency of Australia
(b) the maintenance of full employment in Australia; and
(c) the economic prosperity and welfare of the people of Australia.
Australia walks a fine line though. We still use Fractional Banking and debt can be our undoing if left unchecked.
The rich rule over the poor, and the borrower is slave to the lender.
If the people of Australia allow the nation’s debt to bloom, the IMF will gladly step in to relieve us of our Common Wealth.
The moral of the story is that as citizens we hold the power and the right to protect the Commonwealth of Australia. While we enjoy being laid back and reap the benefits of those who have diligently gone before us, we must remain ever watchful.
Ultimately, our collective voice is heard when we vote. But remember, if we are not happy with what our Government is doing, why wait? We can make a difference immediately by speaking to, or better still, writing to, our local and federal government representatives.
And that is why, I believe, we survive the Global Financial Crisis.