Friday, March 2, 2012

Triple Whammy on Deck for Australia

China is slowing and represents 23.7% of Australia's exports
Fixed capital expenditure in Mining represents 10.5% of Australia's GDP
Construction represents 7.5% of GDP and 9.1% of employment
Relative to fundamentals house prices are insanely lofty (my paraphrase of the charts)
Australians have been borrowing foreign money to sell each other houses and the exit from that will drop the Aussie Dollar

Australia's Economy May Suffer 3 Major Blows

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