gold, page-24972

Let me Google that for you:

"What do you think the Australian bank exposure to residential property really is?"
About 1.4 trillion worth of Australian residential loans in total. WBC and CBA nearly 70% of their total lending assets are Australian property. ANZ about 50% and NAB about 30%.
https://www.marketsandmoney.com.au/property-and-the-big-four-australian-banks/2010/04/07/

"Do you know what the average LVR (Loan Value Ratio) on home lending is?"
Current LVR is about 75% and trending upwards.
http://www.brokernews.com.au/news/breaking-news/average-lvr-waning-across-australia-226188.aspx

"How much equity do you think Australian residential home borrowers have?"
6.9% of Australian mortgage holders had little or no equity in their homes in the 12 months prior to October 2016
http://www.brokernews.com.au/news/b...0-australians-have-no-home-equity-230575.aspx

"How much capital do the Australian banks have?"
http://www.abc.net.au/news/2015-07-14/australian-banks-need-to-increase-capital-reserves/6617910

"Keep going! I am interested to hear how you think is should work..."
I've said it about a dozen times, especially to you, but once more for your sake. First of all, let the market set interest rates, not central banks. Second, you have currency that is backed by a tangible asset, Gold is a good candidate for many reasons. This inherently limits the amount that can be lent but still allows people to borrow, but it will be much more competitive so people will make damn well sure they borrow productively.