interest rates under liberal and labor, page-26

If rates do go to 12-13% as you say they will at least they won't be there for long.
Could you imagine for a second the average family with an average half million dollar mortgage servicing that loan ?? Let alone attacking the principle, UNLESS wages blow out like an atom bomb.
It wouldn't take long at all for Australia to turn into a basket case, this is why I believe your scenario is out there with all the other crap.