We’re 28 months out from the economic/financial depression and the Reserve Bank of Australia is concerned about the land price inflation that has generated it. RBA members consider that trying to take the steam out of the economy–helping to crash it?–with interest rate increases may somehow remedy Australian inflation and put us back on course.

It won’t; it can’t, so we’re facing an increasing array of societal problems as a result. The media will address these issues comprehensively, but not their cause.

The real estate cycle will have it way with us all because we’ve not directly addressed the mindless escalation in land price inflation that has been allowed to occur (at the expense of real wealth creation) over the last 50 years. And that’s the job of Australian governments, not of the RBA; but governments are contemptibly frightened of offending banking, real estate and other speculative interests. It has become our way of life, largely because the tax regime fosters it. So why swim against the tide? Just ‘let it be’ – as the song goes.

So we may expect, not the recession that commentators and analysts are suggesting will occur this year or next, but a final speculative frenzy in real estate activity up into the 2026 peak of the 18-year real estate cycle.

Of course, all the earnest media analysis and commentary will continue over the next 28 months but, although there may be urgers and touts in real estate, many people therein have a better grip on things than economists who fail to see that real estate activity, not productivity, has been permitted to lead and direct the economy.

It can be quite boring and isolating seeing what’s taking place when mainstream analysts can’t, or won’t, because of the acrimony that it might generate in the Australian speculative environment.

So, onward, onto the bubble-burst it is, folks!