Andy Xie has a bearish outlook on China and believes 2013 could be a tough year for Australia:
The market went from not believing in China’s growth story a decade ago to extrapolating past performance into the infinite future……The year 2008 should have been the end of this boom cycle. China’s stimulus misled the market into believing otherwise…..The Australian economy is probably a bubble on top of China’s overinvestment bubble. The latter’s unwinding will sooner or later trigger the former to do so, too…..
It is only the uninformed who believed that China could continue to create enough office buildings to house all the workers of the Earth and come out like roses. It is only the uneducated who believed that commodities could double in price every two years into infinity. It is only those who decry free enterprise ( also uneducated ) that think our economy can prosper under the control of Communism for nothing of any value emanates from that ideology that has driven our country into future poverty.
Based on statistics alone Australia is way over due for a recession
And this could be the likely tipping point: Chinese TV Host Says Regime Nearly Bankrupt | Epoch Times
Is there a full transcript anywhere?
Click the link below the post where it says “via A Hard Landing Down Under | The Big Picture.”