Interest rates are on the rise meaning asset prices will fall, including residential real estate – i.e. your family home. Loans and mortgages will become unpayable to many people who are already credit card dependent.
Foreclosures, with families evicted, will rise, which will be covered by the corporate media. Even the ABC, that most dedicated of government propaganda organs, will be forced to reluctantly report it.
Many small businesses will buckle under the pressure of the increase in rates. Some of them will not only lose their business, but also the house against which the loan to start the business was made. Their employees will become jobless.
The R.B.A. will probably increase rates again later in the year – to show that it ‘means it’. It does not. It will create an ugly picture, and the optics for the government will be terrible.
Ipso facto, the government will reverse course and the R.B.A. will lower interest rates to close to zero and the asset price boom will re-start. It is the easy option. The rich 0.01%, those who wield the real power and who really determine interest rates, will prosper (in dollar terms) and households and remaining businesses will be able to service their debts. Everyone will be happy.
Win – Win
Oh wait, banks will go broke. No worries, the government will bail out the banks.
Oh, wait again, that means real inflation.
The truth is that there are no remaining options. Australia (along with the rest of the West) is gormlessly stumbling and fumbling their way toward economic crumbling.
It will be so bad that even the media might take their eyes of transgender rights and the global warming cult to spare a glance for the real world of people who have to work for a living – i.e. work to produce a valuable product that is needed and wanted and can be afforded in order to stay alive.
That might be setting sights too high.