Who would like the job of the Australian Treasurer Joe Hockey?
Apart from his own budget woes, anyone worth their salt is re positioning themselves for a global financial meltdown which is particularly going to hit Australia hard. The economy has had it too good for two long and the roosters are coming back to visit the chickens. The Chinese property boom, or rather Chinese people buying residential property in Australia is slowing, meaning prices will retreat to normal and while major company investments will continue to snap up rural property which Australian investors can’t afford, the retail property heat has gone.
Australia has been riding no longer on the sheep’s back but of China’s expansion which has slowed and as China flexes its muscle in the world, they can afford to put tariffs on Australian quarry outputs slowing the country’s economy further. The Australian retail sector is bust with lack of service on the domestic level overtaken by on line imports and long term cheap interest rates certain to bring down the stock market. But poor old Joe has to try and keep enthusiasm up. If he tells it as it is the downturn will accelerate as more people wake up, while if he keeps on being bullish they will say he should have known. Seems like he can’t win either way and yet still has to fix the problem.