No, the RBA manipulates and sets interest rates which inflates the money supply. Now when the excess money (inflation) flows into producing areas of the economy, (Manufacturing etc etc) It is disguised as we are increasing productive output at the same time. (Like back in the good old days) But that doesn't happen anymore its easier for the banks to dump the inflation onto a mortgagee and pump it all into housing reaping the profits. Then that mortgagee on sell's the same house onto the next mortgagee and the next and so on and so on like a giant ponzi scheme. This is how a bubble gets created. When in 08 it showed signs of popping The government found The last round of suckers to keep it propped up, which were the FHOG,s. Now there is no one left to take on the debt burdon. Bye Bye housing bubble. Pull up a graph of the money supply expansion vs house prices and you will see exactly what I am talking about.
