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.
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.