Australia’s GDP falls 1.2% – the first time in about 20 years
This might not be bad news because the dip comes on the back of a disastrous wet summer, where there was flooding in Queensland, Victoria, New South Wales and Tasmania. On top of that Queensland was subjected to the effects of cyclone Yasi.
Whilst it is easy to see the dip in terms of these two disasters, there might be other factors coming into play. It is too soon to tell. Australia is heavily reliant upon the resources sector and the mining boom. However, the Watermelons aka the Greens want to put an end to the Australian mining exports. On top of that the Federal Government under Julia-the-Marxist Gillard is intent upon introducing a mining tax as well as the extremely stupid carbon pricing. These are the kind of things that will impact upon Australian exports in the future. The thing to watch will be a flight in capital, as investors flee the market once these things are in fact introduced.
If Australia starts to falter then it will be the fault of the KRUDD-Julia-the-Marxist governments. This is because KRUDD and Julia-the-Marxist have indulged upon an orgy of spending that has driven up the budget deficit from a budget surplus when KRUDD was elected to power.