I have no idea what’s going on with the Australian economy and I don’t have the time to read all of the posts above by KIB and Fitzy but Fitzy is sounding incredibly like a lot of people did in Ireland around 2005/6/7.
When the wheels come off the Chinese economy the Australian economy is goosed. Doesn’t matter how much investment is being poured in, if demand dries up that’s it.
Who is financing all of this investment as a matter of interest? Domestic banks? International bond markets?
I for one can’t wait to see those wife beating, racists in the gutter
This is not the Wexford GAA thread Fran.
FFS. Read what I’m saying morons. How the fuck am I sounding like Ireland in the mid 2000’s? I’m saying that the mining boom is slowing down and this is a good thing, as the two speed economy effect will lessen. China has already started to slow down, but Australia exports significant quantities of minerals and coal to other markets also, such as South Korea, China is only part of the story.
The banks here are heavily regulated, unlike Europe and the US, which meant that they flew through the GFC and have a huge amount of cash available to them. The country’s debt to GDP ratio is among the lowest in the world (about 23%, which is up from the 2008 level of about 9% because the Labor government borrowed money during the GFC to stimulate the economy, a classic Keynesian stimulus that worked brilliantly) and unemployment, despite the GFC, high dollar and manufacturing losses, is still less than 6%.
The Australian economy will not crash. I know you’re all hoping for this, but sorry to disappoint. The ones who will crash are the morons in WA and QLD Kev mentioned with their ridiculous property portfolio. Fuck them.
KIB Man - Craig Thompson and being too close to unions? Is that it? If thats it, then the Labor party can’t be all that bad, when you compare them to the Libs, a party still doing everything in their power to stop any enquiry into the AWB scandal, something I think would lead John Howard and about 7 of his former ministers to long prison spells, a party with direct links to racist groups and looney right wing christians like the Exclusive Brethren, a party with virtually no policies on anything. I don’t like whats going on internally with Labor, but I admire the fact that they have pressed on with a reform agenda despite everything and history will look favourably on their legislative record. Its just a pity they couldn’t have stuck to their principals on asylum seekers.
Surprised to see fitzy is the antipodean Brendan O’Connor
Surprised, really?
The investment is coming from cashed up mining and resources companies like BHP, Rip Tinto, Newcrest etc etc etc. There is still a long pipeline of investment happening. BHP have now pulled the plug on Olympic Dam, an expansion of the worlds largest uranium mine that also holds huge reserves of copper. This was to be a $30 billion investment, stopped more because of their own incompetance. Given their dire record in recent years in acquisitions, they’ll now be forced to give a large portion of that money back to shareholders through increased dividends and share buy backs. Such are the cash reserves of these companies.
I’d love some of the genii on here to tell me when this crash will happen, given their previous brilliant predictions of the GFC. If you could I’d be most grateful so I can plan my exit and warn KIB Man and TASE in advance (we’ll leave Kev here, I’m sure he’ll know someone).
this is all very fine and dandy but it assumes people behave rationally which they don`t.
once the ar5e falls out of this though people panic and the effect of collapse is excadurated by consumer spending collapsing as people hold on to their money. no amount of 9% this and 23%that and blah blah blah will persuade people to spend during a crash
Fitzy’s denial here is astounding. TFK’s version of Bertie’s ‘I don’t know why the people complaining don’t kill themselves’ speech.
These last few postings could go down infamy, like that fella who advised everyone to invest in banking shares.
some amount of misinformation on this thread
property prices are the lowest they have been in the last 6 years
aussies are reluctant to spend because they are in fear on the global financial crisis and they are saving more than anytime in the last 20 years
the governments are reducing spend to balance their budgets
this is nothing like the greed of what happened in Oireland and the wealth being created is based on natural resources and not on a property boom
what kev sees in WA is certainly not the same as the rest of the country
in short- you thick potato pickers have some gall questioning our wonderful country
I think you’ve combined ‘exacerbated’ and ‘exaggerated’, you tit.
:lol:
no combunashun just pur spelin .
Agree with TASE, what I saw in Queensland was nothing like here. Queensland seemed a bit more realistic. Northern Queensland for instance could be considered in recession when I was there, the American recession was hitting tourism very badly and the cyclone and insurance companies really fucked everyone up the ass. I know in Victoria many guys have been laid off in construction. Not as bad in Sydney, but hard to get a decent job, if you do you hold onto it for dear life is the impression I get.
WA Is completely different.
Consumer spending has collapsed already. Much handier to buy stuff from overseas at the moment with the strong AUD anyway. The likes of Harvey Norman and retail generally is struggling big time. Aus is trying to position itself as the prof services hub of APAC but the cost of those services are prohibitively expensive at the moment
The super is a good idea though. That 9% of gross is fixed so that cash will always be floating through pension funds and share markets never
mind what happens.
Strange to say but the single AUD is really hurting the likes of NSW and VIC at the moment
Just found I had about a grands worth of tools robbed out of my girlfriends ute. 99% certain they were robbed by 2 Irish guys who go to the same boxing club as me. Utter cunts.
Anyone any good ideas on catching someone out. I’m pretty good at reading people and will confront them. I know people will say the usual, how do you know blaa blaa blaa. I know, their van was parked beside mine, they left well before me, it was an easy steel.
I’m fucking fuming.
what cunts- break them
Chinese economy is slowing down, who is going to buy the stuff from the Aussie mines?