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June 13th, 2012 
FAKE NEWS for the Zionist agenda Central bank governor Glenn Stevens believes the only way for local businesses to cope with negative effects of the high Australian dollar is to meet the challenge by increasing productivity.
The Reserve Bank of Australia (RBA) boss told the federal government’s economic forum in Brisbane on Wednesday there was no doubt trade-exposed companies were struggling in the face of high costs and low productivity, as the currency impacted goods prices.
“The test really is how many of these enterprises can get the productivity up because that is really the way out in terms of coping with a high exchange rate,” he told the forum of over 100 delegates.
But a low exchange rate shouldn’t be wished for, because consumers are benefiting from cheaper petrol, durable and clothing goods, and overseas travel through a high currency.
“The exchange rate is the device that is imparting the high wealth that the mining boom brings,” Mr Stevens said.
Treasurer Wayne Swan told the forum the way the economy adapted to the high dollar would determine the future success of a number of industries.
But he was optimistic, saying talks at the largely closed-door discussions on productivity had been constructive.
“I think everybody agrees what we need to do is to be quite focused on the areas we will get the biggest bang for our buck,” Mr Swan told ABC television outside the conference venue.
Mr Stevens said there was a long list of ways to boost productivity, in terms of increasing output and efficiency, which had been suggested by the Productivity Commission.
“My answer to what we can do about productivity is go and get the list and do them,” he said.
“They are not popular and they are very difficult and they are politically hard in many instances.”
One theme the federal government and the central bank have been eager to relay in recent days is the fundamental strength of the economy, as reflected in last week’s solid growth and jobs reports.
Moody’s Investors Service, one the world’s leading credit rating agencies, also released an upbeat appraisal on Australia, saying the outlook for its top-line Aaa rating is stable.
It rates the economy’s strength and financial institutions very highly, and says the Commonwealth’s financial position is one of the strongest in the world.
However, despite efforts to talk up the country’s performance, consumers are turning a deaf ear.
The latest Westpac-Melbourne Institute consumer sentiment survey showed confidence grew by just 0.3 per cent in June, despite a further interest rate cut last week and a swag of positive data.
Mr Stevens told the forum there had been a fundamental change in household behaviour that lay behind this “grumpiness”, which has seen the savings rate rising back up to 10 per cent after dropping to zero in the early to mid 2000s.
“High rates of savings at around 10 per cent, I don’t know if that is the right number, but it sure seems more likely to be sensible than zero,” he said.
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