Whilst I agree with almost all that you say I must say cash may not be king as inflation continues to bite!
On that subject I reckon we're being well and trully being hoodwinked, just look at the price of utilites, food & fuel but to name a few, they've increased rapidly in recent times IMO and the RBA would have us believe that inflation is within the accepted range ;) LOL
Australia is/has pinned all it's hopes from an economic perspective on continued growth in China and the subsequent demand for our natural hard resources.
The signs are there that China isn't going to be our saviour IMO, the cracks have slowly been widening for some time now and despite the continued strong growth (in global terms) they have multiple problems that require attention;
1. A serious housing bubble as a result of loose monetry policy
2. Serious inflationary pressure
3. Slowing domestic demand
4. Slowing export demand
5. The risk of increasing civil unrest - refer to Egypt as an example
6. Overloaded with US treasuries (debt)
I'm sure there are others but sooner or later the music will stop and when it stops it'll likely come without warning for the vast majority just as the last time the music stopped and there weren't enough chairs to go around.
