A young colleague of my husband is going on a trip around South America with his partner and expects to be able to find a job and safe up in Perth for what he hopes will be the next step.
Here is why he might want to reconsider:
Australia which like any other “developed” Nation has outsourced most of its factories and therefore wealth creating jobs and is relying almost completely on digging up its resources.
That is all well as long as people want to buy the stuff but and that is a big but…. here is the perfect storm heading for Australia.
In China the unsustainable growth supported by Channel stuffing has led to a glut of products which needs to be unloaded first before they can make more stuff. This is leading to a sharp drop in the commodity prices such as that of Iron ore and other metals mined in Australia. It also collapsed coal prices.
As the result of the economic down turn house prices and the market for new houses, the driving force which kept the US, European, Australian and New Zealand economy going for a bit longer are collapsing which in turn will depress the service industry to the point of collapse.
But you say China is maintaining a 7% growth rate with a 9% factory output according to their official figures! Turns out the Chinese Government is lying about just about everything. Here is a hint: If China is growing at 7%, then why is their rail traffic shrinking by about 5.4 %?