Marc Faber pssimistic about the Australian Economy

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• Category

  News & Politics

[TWSceptic]

Let's face it: both electorate and politics are hopeless. The number of stupid or ignorant people have to make anyone who unnderstands the problems extremely pessimistic.

[Castorios]

the crap will hit the fan much much earlier than at 9%, people are soooo tight in their budgets these days that at 5-6% rates everything crumbles...

[madmikeof74]

it's already failing for the majority of people the next 10 or more years will be the toughest years the world has ever seen it makes me sick to see my fellow Aussies so arrogant and/or stupid. It's full force will hit us shortly and there is no way out of it without severe suffering and loss I assure you.

[Rasterius]

Thank god, I'm in Australia and have been waiting for the housing bubble to pop for ages.

[ewtwetrwerwteet]

He's right about unaffordable homes, I homes are just too damn expensive in Australia, especially for me @ 22. Can't wait for the slowdown to be honest, I Have a permanent government job so hopefully when the slowdown accelerates we will have a lot of forced sellers and I can get a cheap house!!

[wassupbrah1]

Japan is obviously a completely different case both in terms of its economic and business sector, as well as for social reasons. If you're trying to use Japan as an example for Australia... BIG LOLS

[ivar197]

Funny you say that, japan just hit a new trade deficit record, after its yen going low..

While aus is not cheap its the 3rd freest economy in the world which cuts some costs. and dollar is high as a result of mining investments flowing in. and it is good - it is how the mining wealth trickles down to rest of australia in the form of higher purchasing power and increased savings returns

[wassupbrah1]

Look, its not that easy. If there was really such a high demand for our iron and coal, there would be more demand for it from other countries. But the problem is twofold, one is that our dollar is very expensive making iron, coal and whatever else we mine very expensive compared to other developing countries. And secondly, if there's all these countries that really do need ores, they are already getting it from another developing nation where it costs less to mine and hence less to buy.

[ivar197]

iron and coal are good man. you make stuff with them. the market basically cant disappear because if you dont have airon what can you make? nothing. same with coal.

[wassupbrah1]

You don't understand, the main buyers of our coal and iron IS China.What you're saying is that someone else will buy it. While that may be true, it would take a while to do that. Our economy is almost completely pegged to the Chinese economy.

[ivar197]

Hilarious. aussies still have plenty of coal and iron to dig up and sell to the rest of the world. aint no crash coming.