The podcast is very good.
http://www.asx.com.au/resources/podcast/index.htm
Slide 12 of this pdf show % of industrialisation compared to GDP per person, with the relative locations of China & India.
That or it is a strong contender for the Blue Poles replacement.
http://www.asx.com.au/resources/podcast/library/investor_hour070509.pdf
Agree all the way with you there, except that Chinese can consume too when conspicuous consumption becomes possible; and they will also gamble on capital gains, which is probably a hidden Achilles Heel to their current economic expansion (but I can’t say for sure because I don’t have the data).
Sorry to all for a slackness of posting recently–but as you can imagine, the reason is excessive work on other topics.
Now this morning I’m going to have to write a post to back up the comments I was quoted on in The Age this morning:
I must admit, I didn’t expect to see the “bullshit” word in all its glory when I said “and you can quote me on that” to the journalist involved. It looks like editorial standards at our major dailies have relaxed rather more than I had expected. But I’m sure I’ll be called to account for that more so than for the “pebble and tsunami” analogy, so I have to work on a post this morning to justify the remarks.
]]>By the charts… good ol OZ has racked up the same percentage of debt to GDP as the U.S. yet done it in one third of the time. OH yes… thats sure to be the result of having higher lending standards. (Sorry for the sarcassim)
It was quite amusing reading through the various submissions for the senate enquiry. Most of them seemed to be working harder at trying to cover their own butts. The truth will unfold in the markets.
A common theme promoted at the moment is that the scale of the China boom will remain Australia’s saving grace… I’m not so sure it is.
If the western nations of the world have been in overconsumption mode and fall into recession.. then we need consumers to pick up the slack. So all eyes turn to the millions in industrialised China. But does a rapidly emerging chinese economy definately mean increased chinese domestic consumption. Generally I beleived the Chinese by nature are savers and investors.
After reading this report by Zhou Jiangong in the Asian Times online(Zhouis a Shanghai-based analyst on China’s economic, political and foreign affairs.) : http://www.atimes.com/atimes/China_Business/IG21Cb02.html
It seems my thoughts might be correct.
Perhaps India is more closely aligned with western “consumption” culture and may pick up the slack, but as I understand they are years behind China.
In the mean time … Australians are going to be forced to eat plate after plate of “Financial Brussel sprouts” … very good for you in the long run but oh so bitter to taste.
Hope you post after the Public hearing at the senate enquiry.
Kind regards,
Allan