Above is an interesting video interview by the Wall Street Journal discussing Australia’s exposure to the downturn in commodity prices, in particular iron ore.
It seems the world has woken-up to the fact that the Australian economy is dangerously undiversified and overly exposed to one sector of one economy: Chinese construction. The question now is: when will Treasury and the RBA wake up?
Twitter: Leith van Onselen. Leith is the Chief Economist of Macro Investor, Australia’s independent investment newsletter covering trades, stocks, property and yield. Click for a free 21 day trial.
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