Mining will never ‘save the Australian economy’ again

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Readers will know that I am concerned (convinced!) that the next global shock will bring new levels of pain to the Australian economy. This is because I expect the housing bubble to burst. The three reasons are:

  • we’ve run out monetary policy;
  • we’re approaching the limits of fiscal policy, and
  • we’re approaching the limits of immigration policy.

These are the three major pillars of support for the bubble and each is near exhaustion.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.