Exports in the bulk mineral sector are constrained by underinvestment in rail and port facilities which limits the export volumes. So I do not see any quick reponse from coal + iron ore - in fact the demurrage on ships is hurting these exporters.
Similiar to the US we have morphed from a wealth producing country to a consumption economy. I was glad that you did not add to the gloom by quoting the Australian net debt figure of over $400 billion.
The housing boom has been supported by foreign inflows through the securitised RMBS bond issues removing house prices from the loan limitation of bank balance sheets.
The RBA under McFarlane is either brain dead or dead stupid allowing uncontrolled debt to accumulate in the household sector. This debt is supported by high employment but what would you expect with the money creation party the RBA is throwing.
I do not know whether you have been in Sydney the morning after the Mardi Gras - not a pretty sight affter the glamour and excitement of the parade.
