Optimism about the Australian economic outlook is premised on the idea that Chinese demand for resource exports will carry Australia through. I do not believe that the resources sector is really capable of keeping the Aus economy afloat, and that what is really keeping it afloat is precisely the myth of its own robustness. But in any case, it seems dubious to think that the Chinese demand will last forever. To wit, a couple of pieces by Bloomberg correspondent William Pesek. Firstly, this general piece, warning about the stability of the Chinese economy. Secondly, a more specific warning directed at Australia.
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