Slightly off topic ----> .was browsing the properychatDOTcomDOTau > Property Markets forum tonight and came across this thread:
Check out the post below which caught my eye......it provides solid evidence that the RBA cash rate in a hiking cycle (like we're in now) always peaks above inflation (at least in the last 30yrs).
For those that don't know, Sydney property prices have just reported their largest monthly correction in 40 yrs. 40 yrs!!! This with a hiking RBA cash rate currently at 1.85%.
Thing is, the current CPI rate is a touch over 5%. So the RBA cash rate should go higher (if you believe the charts below).
So what do mortgage rates (e.g. CBA, NAB, whoever) look like when the RBA rate is at 5-6-7%?.....are they 10%?....are they 13%?
I've done a post like this before, but for sheets and giggles, check out the mortgage repayment calculator screenshot below, which shows the monthly P&I repayments on a 30yr $800k loan @ 10%.
Lots of pain coming.....maybe historical.....the unwinding will be savage for many people....perhaps generational.
Silver should do extremely well as CB raise rates and all bubble assets world-wide reset.
DF
Why this matters to IVR....we know why ti matters.....the economic destruction / reset will do magical things to the price of silver
(20min delay)