The government borrowing so much also has had an impact on the availability of credit. So has excessive home loans from banks. Excessive house prices also means less spending in the economy, all make for a perfect storm. Too many eggs in the mining basket in Australia all solely reliant on China keeping up it's appetite. Misguided exuberant hope in the mining sector IMO. We have minerals in the ground but we do not have the 'most' in ground minerals in the world. We have about 3 or 4th in the world of coal, but a large percentage of that is lignite. We are about 3rd or 4th in the world in terms of Iron ore reserves. We do not have much oil. Gold production has been on te slide for the past 10 years, we are not in the top 10 in terms of gas reserves. All you here from the government is extreme ramping about how we fantastic we are yet we do not have the highest reserve of even 1 minerals/ energy/metal. Most of what we do have, China as more as do others, and what we do have, it's not in the Eastern states so what do they have? Manafacturing? Ha, now that's a joke if I've ever heard one. Tourism? Not so much with your currency at 1.08. The government as made te country into a nation of hapless dreamers riding on the back of some minerals in the ground in another state thus boosting confidence and house prices to ridiculous levels. She'll be right mate? She won't be she's pretty buggered up as you can see at this point in time.
