[Editor’s note: In response to the observation – “Didn’t Abbott get rolled because of the budget?” Keating has this to say..]
I wrote a while back, we have a structural 50 to 70 billion dollar per annum budget deficit. What we see now is a bit better than the new normal, just wait for the property crash to take that ponzi related scheme and its associated equity release fuelled construction and consumption stimulus out of the economy, and that’s it.
It not pretty.
Australia: House prices very high, so wages very high, so manufacturing almost extinct (hey, an extinction the Greens like.) And we are so smart, we devalue the price of our core export by ensuring the supply vastly outweighs the demand (and that required capital investment of about $200 billion to achieve.)
Photo by Mike Licht, NotionsCapital.com