While everyone is concerened about Europe's national debt, shouldn't we also be concerned about Japan's national debt which is nearly 200% of GDP. Japan being either the biggest or 2nd biggest trading Australian trading partner. I'm not too concerened about Japan defaulting on the debt (it would be bad if they did but it's unlikely that they will for now) but rather concerned that Japan will need to slow down it economy by reducing government expenditure and increasing taxes to pay down the debt.
If Japan goes into another deep recession and China slows down, could this be the end of the Australian miracle. We have nearly had 20 years of solid economic growth. No wonder that house prices keep increasing. Some people think that Australian property will not crash as we are different. True if the Australian economy doesn't go into a deep recession, then there won't be a crash, however if we do then watch out.
While I think it's possible that Australia could have a deep recession, I think that we will continue to dodge the recession bullets, assuming China keeps it's huge demand for our raw materials.
If Japan goes into another deep recession and China slows down, could this be the end of the Australian miracle. We have nearly had 20 years of solid economic growth. No wonder that house prices keep increasing. Some people think that Australian property will not crash as we are different. True if the Australian economy doesn't go into a deep recession, then there won't be a crash, however if we do then watch out.
While I think it's possible that Australia could have a deep recession, I think that we will continue to dodge the recession bullets, assuming China keeps it's huge demand for our raw materials.