Although Australia is over 70% services based we do need an export industry to survive.
The reason being the "support industries" that rely on the exporters. Flow on effects would be damaging.
In saying this the bears fail to look at the other end of the spectrum regarding the currency wars.
The only thing that is protecting the states from ridiculous inflation is the fact that it is the global reserve currency.
I think the day of china becoming a quasi or total reserve currency are closer than people think.
Once that happens the US will not be able to export its inflation to places like china and will have to cease the printing. This is because trade mainly in the Asia pacific will be done in Yuan and not USD.
In the short term we need a government willing to support our exporters from becoming extinct. In the long term any costs to the taxpayer will be repaid in full and some.
IMO what we are seeing now within the world economy is the hiccups that occur along the way when power shifts from a dying global power to a rising global power.
Wealth is transitioning from West to East. This wealth transition will appear in the asset values of the nations that benefit from this wealth transfer.
People may confuse what has happened in the West as a "contagion" that will also affect nations such as Australia.
What they may not have considered is that the GFC was merely the beginning of the great shift in wealth, and that the Asia Pacific region will be the benefactors in this wealth, rather than their assertion that the region will share the pain of the West.
