interest rate rises have stopped me spending, page-25

What the RBA is doing now is protecting the Australian Economy from a dangerous asset bubble implosion. The RBA is aware of the credit explosion that has occurred over the past decade and is also aware of the potential downside risks to economic growth within Australia if this so called 'bubble' is left to correct itself. One only needs to look so far as the Asian Financial Crisis of the 1990's for further evidence of an asset 'bubble' implosion and the long term affect on economic growth within the region.

Go to the RBA website and understand what the role and responsibility of the RBA is, the main responsibility is to ensure that the stability of the Australian Financial System is maintained.

By forcing the local population to save rather than spend, the volume and flow of funds made available for local investment in productive assets such as plant and machinery is therefore increased which in turn helps and promotes growth in economic activity.

A stable financial system and steady economic growth is what the RBA is concerned about, not saving the people who have over committed themselves.

With inflation tipped to be above the RBA's comfort level for the next two years, expect double digit interest rates, as it will be a fact of life. Financial assets (housing, stocks etc) will correct and adjust themselves to realistic levels, albeit at a slower and more stable pace then without intervention from the RBA.

People whining and complaining that they cant cope, as mean as it does sound, only have themselves to blame, take it as a lesson learnt and move on, isnt that what life is about, learning from ones mistakes.