We are witnessing a hollowing out of our productive capacity...

We are witnessing a hollowing out of our productive capacity more as a result of our booming housing industry that the mining boom. There are more tax advantages to punt up the price of housing than can be discussed in this forum - to which Rudd and co added in no small way with the beefed up first home buyers grant. Investment is a zero-sum game - either the investment dollar goes here or there. Tax benefits, grants, social security considerations etc force it into housing - leaving the field wide open for foreigners to snap up our underpriced businesses - be they industrial, mining or agricultural.

All the upward pressure on interest rates comes from the housing sector and - you guessed it - who pays?- the productive sector of our economy - another nail in their coffins.

Cash for housing has to be imported (at least 50% of it - and rising) - this forces up the exchange rate and once again who pays - the productive sector.

Absolutely shameful.

Puts the pillaging of Telstra into perspective - who really cares so long as house prices keep rising.

When it all comes crashing down - as it will - we'll be left with nothing but debt, surrounded by overseas owned farms and mines.