Quote Originally Posted by The Outback Oracle View Post
The problem is Foreign debt.

We have sold off all our Mineral resources. My own numbers were about 80% and The Mayne Report, on a company by company analysis indicated 80%. More importantly, we have a Foreign Debt of $800 Billion which has to be financed along with our Current Account deficit.

If world financial conditions tighten a little further we will not be able to refinance our foreign Debt which will lead to EJ's 'Sudden Stop'. The truth of our precarious position is never told so the public are generally ignorant of the situation. Nevertheless it looks to me a distinct possibility as the year wears on...

AQs to the present situation, the economy is sinking faster than the politicians and those in high powered positions realise.
The Australian & NZ economies are more than mineral extraction economies.

Agriculture plays a big part -- and it does not look like global demand will go down any time soon.

A foreign debt of 800 billion AUD sounds high, but having not read the Mayne Report ... it is hard for me to judge how bad that number really is. At least Australasians have savings in the bank -- vs the US.

I know one thing, tourism is not going to repay that 800 billion as it is all but dead (at least that is what I have heard).