something to think about

Need you to bear with me if you want to read this, think it through carefully.. as its a bit of a mind opener..

Australia is like a game of monopoly, there is only so much money in the board (inside Australia). All the players (the population) have so much money and thats that.

We go to work every day, to earn money so we can spend it.. by spending the money ie entertainment, eating out, shopping, etc we put that money back into the economy so other people can in turn have jobs, and get wages, and spend too, who in turn buy our own services/products which gives us our own jobs.

So there is a given amount of money in Australia and it flows around from person to person.. lets say for arguments sake there are 7 million homes, and lets say the median price in 10 years is up $300,000

That means we have created a pocket of wealth in Australia locked in housing thats increased 7,000,000 homes x $300,000 which equates to $21 Trillion dollars. That we just say we now have as we have risen house prices this much.. (money that cant be spent as its locked in the house) and as more people become new home owners all these go on mortgages which now needs to be paid.

As a result, all this liquid money that was flowing freely between people in goods and services creating jobs and employment is now being siphoned out of the economy and disappears into the house they live in.. effectively running out of money in the economy to flow from person to person from daily spending..

As a result less money is spent by everyone as its now being redirected into the mortgage (which never happened at this level in the past 100+ years), they buy less, and pay out less in services, as a result busines’s make less money as obviously the money starts to run out and is not being circulated as it used to as it now gets sucked out the economy and into the mortgages.

Where is all this new money going to come from to pay off the debts? You probably will say, money made from exporting, but other countries as we know are running out of money too as all the money they have in circulation is being sucked away into debts on over priced housing too, which is why our exports have been seriously effected as they spend less. so its unlikly this money will come from over see's to pay off these new mortgages.

Is tripling the value of housing a workable solution? Is there enough money in australia to pay this out? as more money is sucked out of the economy and into housing mortgages, more busines’s will collapse more jobs will be lost more people wont be able to pay out their house...

Is it a possible observation that doubling and tripling house prices above norms just forces the economy to crash? and crash (as interest rates recover) untill the housing market breaks?