ERROL PARKER | Editor-at-large | Contact
Greens Senator Peter Whish-Wilson, a former Wall Street banker and economics lecturer, was left flabbergasted this morning after reading the latest demand from his colleagues.
Upon learning that the party now wants to strong-arm the government into cutting interest rates as a condition for supporting the Reserve Bank reform bill, the Senator reportedly spat out his breakfast smoothie in disbelief.
The Greens, led by economic justice spokesperson Senator Nick McKim (who holds a degree in basketweaving from the prestigious University of Life, Hobart) have taken an unprecedented step by demanding Treasurer Jim Chalmers use his rarely wielded legislative power to directly intervene in interest rates. This aggressive condition, which flies in the face of economic convention, all but ensures Labor will reject the proposal.
Whish-Wilson, who has seen his fair share of financial market chaos during his time at Merrill Lynch, was shaken.
“Fuck me,” he told The Advocate
“I spat my lemongrass smoothie out seeing that this morning. The whole point of the Reserve Bank is to be independent, not to take orders like it’s some instrument of a government. Something to be poked and prodded from political benefit. It’s literally in ECON101.”
The ultimatum from Senator McKim comes as the Coalition has already walked away from discussions around the bill to create a second Reserve Bank board, leaving the fate of Chalmers’ reforms teetering on the edge.
While the Treasurer has indicated his willingness to retain the power to intervene in “exceptional circumstances,” he’s made it clear he doesn’t plan to use it and certainly not to play along with the Greens’ latest dick measuring invitation.
Despite the tension, McKim doubled down, insisting that either Chalmers or new Reserve Bank governor Michele Bullock should wield the axe on interest rates at Tuesday’s upcoming meeting.
“We’re not prepared to support the legislation unless there’s an immediate rate cut,” McKim told our reporter, laughing.
“I’ve worked with Wall Street traders, and even they had more chill than this,” the Senator said, clearly rattled by the suggestion of such a radical move.
Whish-Wilson said he felt better once he got into work and learned it was just an epic troll.
Finance Minister Katy Gallagher didn’t mince words, calling the proposal “economically irresponsible” in a Monday morning interview.
“The Greens are just trying to play populist politics, like the Coalition. But they’re messing with something they don’t fully understand. The Reserve Bank’s independence has served us well, for the most part, and undermining that for political gain could do real damage,” she said.
Meanwhile, Treasurer Chalmers is expected to calmly ignore the Greens’ latest demands, likely by the same method he’s used since taking office. Politely saying no, like a well-manner Queenslander, while wondering if anyone actually understands economics anymore.
More to come.
