Geopolitical Strategy:
"Normally, we would not expect a relatively well-off and isolated country to have been involved in many wars. This has not been the case for Australia and, more interesting, it has persistently not been the case, even under a variety of governments. Ideology does not explain the phenomenon in this instance."
Read more: Australia's Strategy | Stratfor
Macro
Finally, regarding the decision by the RBA to cut its o/n base rate as aggressively as it has, we note for the
record that the private sector in Australia is virtually imploding. Private sector credit… the monetary “stuff”
from which growth arises, actually shrank for the first time in more than fifteen years in December. Foreign
banks in particular were those doing most of the cutting of credit as they awaited the RBA’s decision. Now that
the decision has been made, perhaps we shall see those banks return to their duties of lending, but time
only shall tell.
Australia’s economy has been hit and hit hard by falling commodity prices of course and by falling housing
prices, but if we are seeing the first nascent signs of a turnaround in the former, and if the latter simply stops
tumbling, and if the banks respond to the decision by the RBA to act as it has, then better, not poorer times
lie ahead.
Wheat:
Australia's ’08-‘09 wheat crop at 21 million tonnes,
Exports to China:
grain and coal - basically a "private mine and farm for China", ha.
Australian thermal coal, used to provide electricity in manufacturing powerhouses like Japan, Korea, and Taiwan, is falling sharply due to collapsing demand.
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