05.09.2012 - Will Australia face a commodities price crisis?
Australia has rode out the economic crisis storm fairly well over the past few years, but will the recent decrease in commodities prices be its downfall? If we put aside for one moment the RBA's use of the concept of trend growth -proof in itself that Australia has escaped many of the effects of the credit crunch era so far!- we see that she saw an expansion in her commodity sector in the first part of 2012. Expanding into a possible slow down has its own dangers and regular readers of this blog will be aware that one of Australia's main customers China is slowing down. Only this weekend we received news that even the official Chinese purchasing managers index is now showing a contraction.............................................Full Article: Source
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