Chiefy Ive been encouraging people to look everywhere, there is...

Chiefy

Ive been encouraging people to look everywhere, there is a global crisis unfolding in Europe, Japan, USA, Australia and China . This is a single systemic global crisis that is showing up symptomatically in different regions in different ways. The focus on the USD and debt, while relevant distracts us form a much more serious crisis thats global in nature.

Rather than the USD collapse, everything could collapse in a rolling crisis that dwarfs the great depression.

Australia is in as bad a shape as the US. We kid ourselves that all that matters is government debt, when all the historical analysis shows us that private debt is as big a problem for an economy as government debt. US vs AUD private debt to income levels are near equal, we can take little comfort in the situation because of our weight toward export resource income. If a commodity bust unfolded because of global austerity we could find our private debt to income ratio substantially weaken (worse than the US), we would also see our tax revenues fall requiring substantial fiscal austerity to keep our budget balanced, this in turn would causing rising unemployment in both public and private sector, with a RE collapse as an outcomes (which in turn will take our banks in the danger zone)

This focus on wealth creation through a collapsing USD scenario blinds a lot of people that their main game will be wealth preservation AUD terms.

Its a very serious situation, its like looking out to see your neighbors house on fire yelling "fire fire" , all the while missing the fact that yours is burning down behind your back.