The only reason house prices have stayed flat is because the RBA has been scaring the Jesus out of every one every Tuesday at the beginning of the month.
Glen Stevens does not live in a normal reality with a $1.25 mill pay packed which includes a $250k increase in the middle of the GFC in 2008.(Now Now, you do and act as we say)
Savings are up, serviceability is up, supply is tight, rents are creeping up, housing starts are down.
The economy needs asset price increases as we live in an Inflationary Monetary System. Too late now. We are stuck with it. Its a Ponzi Scheme that will never end. Assets need to increase to support it.
(Debt Ceiling!! What a load of crap. Like there is not enough Server space in Basel to keep a tab on new currency created out of thin air. It's not like the US currency is mined to be created!! It just created in the digital domain !! Like it says on their dollar bill"In God We Trust" They went off the gold standard in 1971)
There is not 1 free dollar in the system. Every dollar that has come into existence has been through debt.
So there is Debt chasing Debt. Eventually the system runs out of money if no new money is created through property loans and credit card debt. It eats itself up.On top of that you have Gov taxes and charges.
How is money created you say. Banks don't take your $100k and give you 6% and lend it to me at 7%. They use the Fractional Reserve system and multiply that by a minimum of 10 times and create money through loans in the digital domain. If you and me tried to do that we would be put in jail for fraud and counterfeiting.
So, they give you $6k a year for you $100K
but,
They collect $70k interest by being able to create $1mill from your $100k in the digital domain for loans.
Our Government's Politicians have no IDEA how all this works.
Only a select few !!
Therefore, the puppeteers engineer housing booms through easy credit and/or by lowering rates. The easy credit basket is out of the window for now thanks to some cowboys in the USA who abused the system and created a 30 year oversupply of housing. Banks are a little smarter here. They keep control of their developers so there is not an oversupply created which will affect their whole loan books with falling prices.
IMO, rates will decrease and all Aus States Residential property prices are going to increase by 35% within the next 18-24 months.
Anyone complaining, get on the band wagon now or keep on renting.
For the gold bugs out there wanting to invest in gold and have all currencies backed by gold.
It ain't going to happen. The tide will soon go out and your gold price will halve. You all saw what happened to Hussein when he asked to be paid in Gold for his oil. Gaddafi also asked to be paid in Gold for his oil at the beginning of the year. We all saw what they have done to him.
They are in control and just restructuring the monetary system for Basel III. By 2018, they don't want cash to exist.
So get ready for plastic, mobile phone or retina scanning to access your money/credit.
That's my morning Rant, need a coffee now.
P.S. No need for me to supply links. There are enough lead words there to Google for you to confirm my facts.
