00:00Reserve Bank Governor Michelle Bullock was asked today if she should accept some responsibility
00:08for our housing prices taking off during the COVID pandemic.
00:12Astonishingly, she said no, blaming a lack of supply and saying it's not the responsibility
00:18of monetary policy to look after housing prices.
00:21We certainly need more homes, and there not being enough pushes up competition and prices.
00:28But this RBA graph of the RBA's cash rate that it makes decisions on has a different opinion.
00:35Interest rates affect the cost of money.
00:38A low rate makes it cheaper to borrow, and in mid-2019, long before COVID, it was down below 1%.
00:45It then sat at emergency levels of 0.1% until mid-2022,
00:51even though inflation, which the cash rate is meant to control,
00:54had rocketed from 1% a year to north of 5% a year.
00:59So the RBA isn't to blame for our housing shortage,
01:02but it's got a fair bit to do with pumping demand and our sky-high prices.
01:07A flat day on currency markets.
01:10Gold now above US$4,000 an ounce, the weight of a few batteries up 50% in a year.
01:19Our market lower for the day and the week, but hovering near record highs.
01:24Global markets were lower, and in the US too, where things are tightening.
01:29The US government shutdown is in its second week, and US debt levels keep rising.
01:35Overall, the government in the US spent $6.7 trillion last year,
01:40but more than a trillion of that was on servicing debt.
01:43When you take the interest paid on debt compared to the value we create,
01:48our gross domestic product, the US is paying nearly 4% of GDP on interest.
01:53Australia, just over 1.5%.
01:56And that's finance.
01:58PAY.
02:02Again, a few people in the US passado are back to us with which OS pillows
02:05are now locked up daily.
02:07I trust that in the US as we tell us productivity that we have heard of them,
02:09we're highly ratedING, but we track up.
02:11Or be ah.
02:13We just submit that thing here if you try what it is.
02:15People say that there is like a great stance.
02:17People say that money has been extremely lowly,
02:19osterous allows us to chase a huge amount of months,
02:21and so we've been along for years,
02:23let's go next to an incredibly wide range.
02:25For example, most of our trying to pay less specific waves,
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