" ... you mention capital inflow Australia will never have problems getting capital as our rates are twice as high as in most of the countries that we borrow from..."
at the present time, yes, but the moment a government puts a cap on the interest rate on what lending institutions can charge charge borrowers, and assuming the interest rate cap has to be of some significance, you will find that over time the differential between our internal interest rate and the rate we pay to borrow overseas will narrow quite substantially.
On the matter of the effects of interest rate on people, there is no argument with that. We had a similar line of discussion some weeks ago on the same topic.
