We have talked about the vulnerability of the Australian economy due to its exposure to heavy mining materials before, as we expect Chinese demand to slow down.  There are significant issues with the Australian economy due to over-inflated housing prices, and an extremely strong currency which crimps exports.  The decade long mining boom has propelled...Read More

Australia’s housing market has been a huge beneficiary of China’s natural resource thirst.  Extremely low unemployment and rising incomes have helped to boost prices dramatically, while most of the developed economies were seeing huge housing deflation.  Debt to income in Australia is around 150% so any slow down in China (which we already see happening)...Read More