Apparently a valid question.
May explain why the leaders have their knickers in a knot and discussing taking more money away from social support groups and bickering about the “untouchable” GST.
Incompetent government looks like eventual austerity measures.
Australian consumers are more worried about the medium term outlook than at the peak of the financial crisis, and rightfully so.
As The Telegraph reports, by the end of the first quarter this year, Australia’s net foreign debt had climbed to a record $955bn, equal to an already unsustainable 60pc of gross domestic product, and is set to rise as RBA’s bet that depreciation in the value of the country’s currency would help to offset the decline in its overbearing mining industry hasn’t happened to the extent they would have wished.
Furthermore, as UBS explains, China’s real GDP growth cycles have become an increasingly important driver of Australia’s nominal GDP growth this last decade. With iron ore and coal prices plumbing new record lows, a Chinese (real) economy firing on perhaps 1 cyclinder, and equity investors reeling from China’s collapse; perhaps the situation facing Australia is more…
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