Interesting comments regarding our two-speed economy on this thread, in actual fact it's more of a multi-speed economy than it is a two-speed economy.
The unfortunate part is that our foolish politicians only see good times ahead because of China's ongoing hunger for our natural hard resources. Our leaders believe that the demand for our resources will be our saviour, that is the demand will go on long enough to sustain our economy while the other important sectors within; retial, hospitality, manufacturing, tourism etc "pick up".
It's a nonsense IMO because China is already starting to falter and I'm guessing that next to no one has experienced any of the "mining boom" personally?
Here's some points to consider regarding China and the resultant impact this will have for Australia;
1. Inflation is uncontrolled despite the Chinese leaders saying it is,
2. The Chinese are already having to send certain work off-shore becuase of increases wages,
3. Loose credit has caused a massive real estate bubble,
4. Polution that is simply staggering,
5. Increased levels of civil unrest related to wages and conditions
6. Stockpiles "magically" appearing in China (this is a problem all of it's own for a country such as Australia)
7. Recession like conditions in the US, Japan, Europe where much of China's export demand comes from,
8. Slowing Chinese exports
9. Slowing domestic demand
10 Slowing manufacturing
Here is but 10 points that I could think of off the top of my head.
Our politicians and indeed CEO's of our largest miners must know what is taking place already and are just choosing to ignore the elephant in the room.
