From the AFR:
Mr Morrison is still positive about the Chinese economy.
“Why would we be gloomy about the China picture? As a government we haven’t been drawn into the global group-think about the slowdown in China. The slow down was not a surprise, it was entirely predictable that it would eventually occur.”
Yes, it was, as Michael Pettis, MB and others warned. But it was not predicted by the Australian Government:
Nor the RBA:
On the contrary. Both assumed the China boom was a “structural adjustment” that would boost commodity prices to a permanently high plateau and hence they deliberately hollowed Australia out to “make room” for mining-led growth, only to then enter a panic reversal and pursue economic “rebalancing” in the other direction supported by a renewed housing bubble.
The only thing entirely predictable in all of it was official misjudgment of China.
