inflation vs deflation mish shedlock in 2005, page-7

CT and AD, this is worth a read to put into perspective the contraction of credit the US is experiencing.

http://www.moneyandmarkets.com/new-hard-evidence-of-continuing-debt-collapse-34202

If this sort of thing is happening in the US how long is before Australia starts finding it difficult to source its offshore funding requirements to satisfy the increasing hunger of consumers in Australia. It's seems most Aussies are lapping it up at the moment with low interest rates and gov incentives and becoming further indebted. I know its off the topic of gold a bit but you guys seem quite knowledgeable, so how do you see it unfolding in OZ. It would appear quite a few bubbles in Oz are further inflating on poor govt policy etc, when the rest of the world is deflating. I wouldn't think we are immune here, but many believe we are and in turn further speculating on investments with the help of low interest rates with belief this blip is once in a lifetime to get further indebted as rates will stay low for the foreseeable future and by the time rates go up their investments would have risen substantially so it wouldn't matter. Are we in for a taste of it US style???? It would seem we are placing to much importance on china. Any thoughts would be much appreciated.

Cheers

Jim