DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - The Party Is Over In Australia As Debt And Living Costs Surge

**yespkorg** · 01-04-2011, 11:33 PM

Nonsense.

With growth of China and India, demand for basic commodities will continue to propel Australian economy. Currently China is the world's largest consumer of steel and cement. It is importing iron ore from India! As India progresses and builds it infra it too will need the commodities.

Australia has only 20 million people. I see good years ahead.

Finally, all economies go through cycles. So there will be the usual boom and bust. Strong finances will allow Gov to mitigate the bust, (provide the stimulus and social safety nets).

Actually the Chinese are starting to look elsewhere for their commodities but this is actually irrelevant. The liquidity expansion from China's stimulus, the Euro printing press and the US printing press has created massive asset bubbles in HK, Singapore and Australia and other nonmature economies. Australia is noteworthy as its a bubble ready to pop eventually - everyone is waiting for this to occur. Every time the rates increase more hot money flows into Australia and the A$ could crash with a China slowdown - with the Chinese trying to slow down their economy in 2011.

China is facing a serious inflationary crisis, and is busy putting out fires to stoke inflation but tightening. Every interest rate hike or reserve requirement puts a damper on industry which translates into lower demand for commodities. This will actually hurt Australia.

2011 will prove to be important but we dont think China has a handle on its inflation problem. Money supply is increasing too fast, the Chinese are going to HK to buy food now, and the Chinese will have some success in slowing down the economy to 8-9% but inflation will continue to run out of control, another 8% on top of 2009's 10% and 2008's 8%. In 2012 we think things could run out of control in China and either the Yuan rises (which will slow production) or inflation fears in China push markets into turmoil like in 2009 (and the US Dollar rises significantly, lowering oil, other commodity prices) or the US Dollar itself comes under attack due to fiscal worries (commodities increase to stratospheric levels, pushing up inflation in developing economies, starting another GFC)

Also look for the property bubble to pop in China - this will destroy Australia.

01-04-2011, 11:33 PM	#14
yespkorg Join Date Oct 2005 Posts 470 Senior Member	Nonsense. With growth of China and India, demand for basic commodities will continue to propel Australian economy. Currently China is the world's largest consumer of steel and cement. It is importing iron ore from India! As India progresses and builds it infra it too will need the commodities. Australia has only 20 million people. I see good years ahead. Finally, all economies go through cycles. So there will be the usual boom and bust. Strong finances will allow Gov to mitigate the bust, (provide the stimulus and social safety nets). Actually the Chinese are starting to look elsewhere for their commodities but this is actually irrelevant. The liquidity expansion from China's stimulus, the Euro printing press and the US printing press has created massive asset bubbles in HK, Singapore and Australia and other nonmature economies. Australia is noteworthy as its a bubble ready to pop eventually - everyone is waiting for this to occur. Every time the rates increase more hot money flows into Australia and the A$ could crash with a China slowdown - with the Chinese trying to slow down their economy in 2011. China is facing a serious inflationary crisis, and is busy putting out fires to stoke inflation but tightening. Every interest rate hike or reserve requirement puts a damper on industry which translates into lower demand for commodities. This will actually hurt Australia. 2011 will prove to be important but we dont think China has a handle on its inflation problem. Money supply is increasing too fast, the Chinese are going to HK to buy food now, and the Chinese will have some success in slowing down the economy to 8-9% but inflation will continue to run out of control, another 8% on top of 2009's 10% and 2008's 8%. In 2012 we think things could run out of control in China and either the Yuan rises (which will slow production) or inflation fears in China push markets into turmoil like in 2009 (and the US Dollar rises significantly, lowering oil, other commodity prices) or the US Dollar itself comes under attack due to fiscal worries (commodities increase to stratospheric levels, pushing up inflation in developing economies, starting another GFC) Also look for the property bubble to pop in China - this will destroy Australia.
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