Originally Posted by Pit Bull.

The thing is, people look at what might happen and it rarely does, the lovely Edwina Curry said on the tomorrow's paper show on sky news a few months back that, if Greece will leave the Euro like was predicted, Spain and Italy will then need hundreds of Billions of euros bailouts and the Euro will collapse, this would cause contagion throughout the worlds countries economies and people's pensions will be wiped out and recession and mass unemployment will follow in most countries for years to come. People say things that get a sound bite reaction and the only problem with predictions is thats all they are, I like to see what happens, listening to doom and gloom predictions that might never happen is focussing on the negative and I am a positive person, so fingers crossed that any impact from the mining downturn will have only a minimal effect on the Australian economy.

Originally Posted by Beaverstate

I don't see how Edwina was wrong,yet.

Originally Posted by Pit Bull.

so fingers crossed that any impact from the mining downturn will have only a minimal effect on the Australian economy.

Originally Posted by Zen10

The problem is that 25% of Australia's exports go to China, and about 60% of that is iron ore. In other words over 15% of Australia's economy just got slapped. What irritates me is that this was 100% predictable because the Chinese slowdown is planned, so I hope the Government has put a good plan in place to take up the slack.

Originally Posted by Zen10

The problem is that 25% of Australia's exports go to China, and about 60% of that is iron ore. In other words over 15% of Australia's economy just got slapped. What irritates me is that this was 100% predictable because the Chinese slowdown is planned, so I hope the Government has put a good plan in place to take up the slack.

Originally Posted by commonwealth

I think I now want to apply for a Canadian visa after reading all this.

Abandon Australia!

Originally Posted by Tramps_mate

I'm British and Canadian citizen, so if Aus fails, plan B is Canada..

Originally Posted by Pit Bull.

The title of the thread is Australia officially in recession? Well the correct answer is No' Recession is only official when a country has two consecutive quarterly minus growth figures, like we have had here in the UK again. The last I heard Australia was having growth of over 3% so that's a long way away from recession and will a collapse in the mining industry and housing market force Australia in to recession? It's highly unlikely, but who knows.

Originally Posted by Zen10

Once again, the collapse in demand for iron has caused the (massive) bubble in iron ore prices to pop, sending the price from $187 to $90. It will continue to fall and to give you an idea of its final destination, in 2007 it was $34. Swiss investor Marc Faber has described iron as the fourth "mega bubble" in the past 40 years, along with gold in the 1970s, the Nikkei in the 1980s, and the Nasdaq in the 1990s.

This drop will feed into the mining industry over the next year or so, and then those on the high street will finally work out that the mining boom is over.

Originally Posted by Tramps_mate

Hasn't Australia just had a quarter of negative growth?

Mining collapse will be catastrophic.

Originally Posted by Zen10

Your problem there is how closely Canada is tied to the US economically, and the US is going into the crapper.

Originally Posted by Zen10

The problem is that 25% of Australia's exports go to China, and about 60% of that is iron ore. In other words over 15% of Australia's economy just got slapped. What irritates me is that this was 100% predictable because the Chinese slowdown is planned, so I hope the Government has put a good plan in place to take up the slack.