looking set for a rebound, page-65

Bang on Mayo. I bought 3 houses from 2001 and sold them all by 2008. I'm glad I did. I worry for family and friends that are sitting in houses at $600k plus. I mean they are doing ok but anyone that sells is lucky to sell for a small loss. You can buy houses cheaper but you won't get much for them if you sell so it's all relative.

I have been in Germany for seven years and I'm impressed. They manage manufacturing first - not the retail profits of supermarkets. They contain inflation and abruptly put in checks to prevent inflation from spiraling. E.g. rent is fixed with increases at no more than 7% per annum or 20% every 3 years. I used to just about put up my tenants rent 10-20% every year .

And as you say. One day China will slow down to 3-5% GDP. It may not happen anytime soon but it will happen. Commodity super cycles last about 20-30 years on average. We are about halfway through this cycle, (which began in 2001) with China initiating Phase II -inland development- where most of the population live and which has only really just begun.

However, by 2022, it could be all over. That's just 10 years from now to re-plan, re-organise and restructure the entire Australian economy for sustainable growth and productive jobs. Time is beginning to run out.

Australia needs to look beyond mining and focus less on selling cheap commodities to the highest bidder, and on how much money they will make by taxing the guts out of this industry and focus on what they will do once the mining boom ends. What industries will they develop? and support? and hopefully the majority of this carbon tax money will be directed there.