in 1971 Nixon abandoned the Gold Standard ... whereas before, all US currncy was redeemable for X ounzes of gold, thereafter it was not. This de-linking allowed the US Federal Reserve to print $US (the Reserve cuency) as it wished. Global money supply doubled during the Vietnam War, resulting in inflation of 14% in the US and the Prime Rate at 20% ... Chart the growth in global (or local) money supply with the price of property (or any asset) and you might get a shock as to the correlation. Recent decade money supply growth has been compounded by the velocity of lending by the banking system. Housing shortage in Australia as the cause for property price increases? Don't think sooo!
