papilon

More balanced ie not a one trick pony relying heavily on the fortunes of one country. UK much to many peoples suprise still has a manufacturing base, The City has been hit in the biggest financial crisis in a lifetime but still is a strong asset for the country.

No one will be immune from a Chinese collapse but Australia will be badly burnt. I live in Australia and have absolutely no desire for this to happen as it will directly effect me, just pointing out to you that just because Australia has avoided the worst up until now doesn't mean it will in the future.

papilon

Yeah stupid nurses,teachers,tram drivers,council workers and about 95% of the population that don't work in mining

commonwealth

surprise... surprise...

GDP by sector

Australia
agriculture: 4%; industry: 24.8%; services: 71.2%

U.K.
agriculture: 0.7%; industry: 21.6%; services: 77.7%

if there's one last thing the the Chinese will stop buying, it will be the primary products. milk, beef, wheat... and not hedge fund units.

papilon

You do know that when the republicans last came to power they inherited a surplus. When they left office the country was 12 trillion dollars in debt and had nationalised GM,Fanny Mac and a host of banks. I consider myself to be a conservative but not the kind the feckwits the US republicans practice.

commonwealth

so miners and their families don't need nurses,teachers,tram drivers,council workers?

so they don't deposit their money in westpac? take out a mortgage from bankwest? buy their groceries from woolies? purchase their LCD TVs from JB hifi? send their kids to school? build their own homes without tradies? don't get their permits from councils? staycationing instead of a holiday in Gold Coast or Hawaii?

so, you're saying, mining operates in a vacuum?

commonwealth

Well did you know the Iraq and Afghanistan wars have drained the US budget to an unstoppable hemorrhage?

That's the real Republican damage.

papilon

The OP stated that we are all idiots if we didn't take advantage of the boom while it lasts, well the vast majority cannot and are effected by the strong $ and the disparity the mining workers create.

Budawang

Ross Gittins is my favourite economist. If you want to understand the Australian economy then you should read Gittins. For the record, he doesn't think manufacturing is in terminal decline in Australia - there are several ways smart manufacturers can deal with a strong currency. Switzerland is a good example of a very high cost economy (wages are even higher than Australia) which is world famous for its niche manufactured goods.

http://www.rossgittins.com/2012/02/h...vive-high.html

commonwealth

I think you misunderstood what he said. The fact is, we're benefiting from the mining boom in many invisible ways. Some sectors will lose but that's the painful adjustment this new economic environment creates. I don't think it's that bad.

chris955

Im sorry but the fact that some economist doesnt think the Australian manufacturing sector is in terminal decline is ignoring the facts. You cant just become another Switzerland. Manufacturing in this country is doomed, what little is left cannot last too much longer.

chris955

Exactly, there are very few who benefit from the mining boom, it isnt as if it enriches our lives in any way or the lives of anyone we know.

Turban Explorer

The mining boom also works in mysterious ways? !

commonwealth

Indeed! I want to explain but it's a long boring topic. Let me know if you're interested though!

commonwealth

Here's an interesting story about the currency of Brazil (which apparently has recently overtaken Britain in the GDP rankings).

The curse of success: Brazil suffers with high currency and knows not what to do
http://www.guardian.co.uk/business/e...rency-blogpost

chris955

The high $ is hurting the economy here in so many ways.