Australia’s Trade and Government Debts Unsustainable

Some herald Australia and New Zealand as future European enclaves for escape from post-American collapse.

However, with the dramatic collapse of commodities, Australia’s economy is in tatters.

From The Sydney Morning Herald:

Recently revised figures for April show that the country’s trade deficit with the rest of the world ballooned to a record $4.14bn. That gap between the value of exports and imports is expected to increase as the value of Australia’s most important resources reaches new multi-year lows.

Mr Koukoulas points out that by the end of the first quarter this year, Australia’s net foreign debt had climbed to a record $955 billion, equal to almost 60 per cent of gross domestic product.

And China is lending to Australia, indebting it to China. At some point commodities will recover, but I fear China will gain power over Australia as a result of this lending.

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