ken henry talking sense, page-26

I will be fascinated to see what actually happens by 2020. The forces of deflation are rising again and markets are stinking up the place, with the likely result that QE3 is coming and coming soon. Bottom line is that the world economy is not looking too well at present and tax revenues are falling in all the western world economies. Personally, I dont believe that the West has the stomach to face the real costs of carbon trading systems and their resulting taxes, and their economies wont stand the hit. I dont believe in man caused climate change and I certainly dont believe that man can change climate resulting from an exogenous factor like solar activity.

So I continue looking for investments in safer and more predictable countries, with governments that are pro business and costs are lower. Right now the USA looks pretty good in comparison, and we have lots of holdings there.

Australia's natural advantage globally is a massive source of coal, which results in cheap power. If we fail to use it and chase rainbows we will be in a complete mire before too long. The only thing that save Australian industry right now is a lower exchange rate, and ironically we getting it through the debacle of this governments policies!