As I watch the AU economy from a distance, it's becoming harder and harder to predict where it's about to turn next.
Certainly the recent forex gains were brought on by the reserve's rate hikes, but where does this lead?
As the AU dollar rises further and further, it's making a great regional economic power of the country.
But what you won't see are exporters phones running cold as countries around the world start getting their Beef, Iron Ore, and Alumina. Flow on from this is you'll see australian domestic demand become a driver behind growth even more so. How far that pushes on depends on how long the AU Gov keeps spending high.
But is this a bad thing? It's now one of the strongest economies in the world in terms of PPP per capita. But climbing that high up the tree means when the wind blows, you can be one of the first to be knocked off.
Both sides of governement worked hard over the past 10 years to bring manufacturing back up to speed, and largely, they've succeeded.
What australia has is land. And lots of it. Arable, resource rich. Much like Africa. Oh that's right, that continent that china loves and is investing like crazy in.
Interesting times.
Certainly the recent forex gains were brought on by the reserve's rate hikes, but where does this lead?
As the AU dollar rises further and further, it's making a great regional economic power of the country.
But what you won't see are exporters phones running cold as countries around the world start getting their Beef, Iron Ore, and Alumina. Flow on from this is you'll see australian domestic demand become a driver behind growth even more so. How far that pushes on depends on how long the AU Gov keeps spending high.
But is this a bad thing? It's now one of the strongest economies in the world in terms of PPP per capita. But climbing that high up the tree means when the wind blows, you can be one of the first to be knocked off.
Both sides of governement worked hard over the past 10 years to bring manufacturing back up to speed, and largely, they've succeeded.
What australia has is land. And lots of it. Arable, resource rich. Much like Africa. Oh that's right, that continent that china loves and is investing like crazy in.
Interesting times.
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