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This is Why Australia Hasn't Had a Recession in Over 25 Years (bloomberg.com)
Australia is close to seizing the global crown for the longest streak of economic growth thanks to a mixture of policy guile and outrageous fortune. From a report: While growth is being underpinned by population gains and resource exports to China, failure to spur productivity has meant stagnant living standards and electoral discontent; a property bubble fueled by record-low interest rates has driven household debt to levels that threaten financial stability; and a timid government facing political gridlock could lose the nation's prized AAA rating as early as May because of spiraling budget deficits. Australia's last recession -- defined locally as two straight quarters of contraction -- occurred in 1991 and was a devastating conclusion to eight years of reform designed to create an open, flexible and competitive economy. But it also proved cathartic, paving the way for a low-inflation, productivity-driven expansion. As momentum started waning, China's re-emergence as a pre-eminent global economic power sent demand for Australian resources skyrocketing, helping shield the nation from the worst of the global financial crisis. But the post-crisis return of the boom proved ephemeral, failing to boost government coffers and pushing the local currency higher, eroding competitiveness and driving another nail into the coffin of a fading manufacturing sector.
I've posted this maybe dozens of times across the internet, I'm tired of shouting it and I'm tired of making lengthy posts with links and evidence.
The country is selling all it's gas, minerals at rock bottom prices to anyone and everyone for a start. In a huge massive way. The mining boom is finally slowing down significantly, at least so I hear.
We are also pretty lax with stopping people buying property. There's arguments why shouldn't we stop them, but seriously, I'm sick of debating it. If you can't see how someone vastly wealthier than the common local, bidding for houses isn't going to mess up the cost for the locals,..... well I don't know what to say. There's a reason Thailand, Indonesia, other smaller second class countries don't let foreigners buy.
We're getting 'Vancouvered'. It ain't about race, it's about economics and the locals (who don't own yet, you know, a LOT of people) are getting destroyed, totally by this.
That's the facts, it's as simple as that. Furthermore, as long as the Chinese can still buy property (and they do it legally and illegally) then I suspect the 'crash' which I've hoped for, for a decade, simply won't come. They'll just see a cheaper place to store their money they want to hide from China.
We're boned. Best benefit to all this would be a property developer in the last 20 years. Rest of us? Well I've held off using expletives but to say I'm white hot raging angry would be an understatement. @$#%^ our governments.
Oh please, spare us your xenophobia.
If I said the population of Africa is mostly black is that xenophobia? No? Then why is pointing out the simple fact that there is an incredibly large institutional investment from Chinese non-residents of Australia in the country?
I mean every major skyrise construction is bought out mostly by Chinese non-residents. Whole suburbs in major cities have been bought and build by Chinese non-residents. The two largest cattle companies in Australia have been bought out by Chinese consortium. The largest property in Australia (the size of Israel) was bought by a Chinese consortium. And let's not forget the all their investment in our dairy industry, coal industry, telecoms, ... they'd own it all if it weren't for the fact that the government keeps coming up with new laws limiting foreign ownership (and good-on-em as well).
I wonder why people were concerned about the Japanese and not the English.
You may wonder, but you don't know despite what you claim. There's a big difference between having foreign ownership from a country who is a close ally, has strong political ties, similar financial systems, and works on the same principles as yourself, vs a country who you will quite likely be at war with again within the century, who you have strained political relations with, and who you accuse of and constantly take to the various trade organisations of deceptively rigging their financial and trading systems. China is economically hostile, just as Japan was in the 80s.
The fact that you put this down to xenophobia is just an amazing display of ignorance.