A quick observation on the appearance of RBA boffins before the Senate’s Standing Committee on Economics last week (find the Hansard below). There was lots of interesting discussion of banks, competition, mortgage rates, unemployment and the adjustment to mining led growth, Europe and its effect on the local economy and the high dollar and its effect on jobs.
There was one topic, however, that was not discussed at all. In fact, it was mentioned once only in the RBA’s opening gambit and not picked up by any senator for further questions. Given it is the ONLY thing that matters for the future our economy as it is currently framed, this strikes me a little odd but it does tell you all you need to know about our political classes, their predilections, values, vision and ignorance.
The topic in question is China, its economy and its slowdown.
Standing Committee on Economics_2012_02!24!844
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Because what could we do in any case? If China hard lands, we’re screwed. RBA know it. Treasury know it. Would be time for a re-draft or too.
We have no control over it. We cannot direct it. We would only be victim to it. Best to just get on with things and let the boom run its course – which you have already advised, is over…
Wasn’t it Chinese stimulus and investment in minerals in face of USD QE and ZIRP that really/helped saved Australia during the GFC.
Labor’s BER and Insulation also kept all the tradies working, but China’s stimulus leaked partially to us, just as our cash splash leaked partially to them.