the r word

overnight the "R" word.....recession....raised its head in the US.

not that anyone should be surprised when we have seen the housing sector issues in the US beginning to surface and naturally connected sectors being hit.

Only Friday our time we had the economic forecasters for growth stating that for the first time China would have a higher output then the USA

Which in many ways augers well for Australia as our future is more solidly tied to China and more broadly Asia then it has ever been

If Australia can keep wages etc in check,the risk to our economy overheating and the potential risk to higher interest rates which in turn slow our economy will be avoided.

The outlook for Australia continues to be bright despite hiccups in what was the worlds largest economy.

lets hope the "r" word does not raise its ugly head here.