Statistically a bout of inflation is followed by bout of deflation/recession and IMO that's on its way now. The RBA is now between a rock and a hard place bound on one hand by inflation parameters 2%-4% in a globalised economy that is decending from a severe inflation spike and an increasing geopolitical instability.
If the US objective of "containing" China economically, then this is totally against our economic interests and rather than plead dumb, we should be doing something about it.
We screamed when China bunged tariffs on our ag products and thermal coal because we bagged the BRI and declared China our #1 enemy , but the impact on Aus economically of the US being successful in stymieing China's economic growth would virtually spell bankruptcy for Aus . And we want to be America's best friend; how good is that for America!
But back to the tenor of the OP: -Recession follows inflation just as surely as night follows day, IMO, and just because China kept us out of the US generated GFC recession 15 years ago does not mean that China will bail us out again. In fact the likelihood is that China will try to sink us economically for our arrogance.
If I were to be China, the that's what I'd do to: (a) put extreme pressure on the Aus-US relationship (b) scotch the AUKUS subs (c) like the Russian cheap oil, pick up some cheap IO and Met Coal along the way.
