The Austrians are lying about my country. They generally lie about everything but when it comes to my own nation of which I know the data very well then something has to be done. Today I examine the claim by some Austrians out there that the Reserve Bank of Australia cannot unilaterally create $A dollar credits in the banking system (for example, add to bank reserves) without first holding American dollars (or for that matter any currency). The claim is totally nonsensical but you need to first understand how central banks operate and then form an accurate view of the historical record to understand why. But when it comes to using publicly available data that other “experts” know very well – it is always better to tell the truth. I am on a bit of a truth theme over the last week.