Think about this scenario: the RBA cuts rates, yet the interest you pay on your mortgage goes up. How could that happen?

The answer is the Australian government’s trillion dollars in debt. If the muppets in Canberra continue to spend and borrow like they have been, adding to the near trillion dollar debt pile, the consequences for Australians will be huge.

The country will lose its credit rating, bond premiums will increase and there will be flow on effects right down to the repayments on your mortgage. Everyone knows you can’t spend more on the credit card than what’s coming in your salary or the house will crumble.

Everyone it seems, except Jim and Albo in Canberra.