Yes Aus is fortunate to have such an abundance of resources. However, historically resources have been becoming less valued than industrial products. It is only in recent years that there has been a price bubble. I do accept that some resources are finite, and the historical trend of cheaper (inflation adjusted) resource prices may have come to an end.
But the surplus nations do not have a monopoly on resources. Japan, Hong Kong, Singapore, etc, for instance are not well endowed. So I think your argument is not irresistible.
Australia is in a much worse position than the US in terms of industrial capacity, and when currencies are better valued then it can rebuild it's industry. Australia on the other hand?? Does it have any - other than mines?
I do agree with the pessimists that it is going to be very painful for the debtor nations like US and AUS.
