Societe Generale’s Dylan Grice is is sticking to his statement that Australia is “a credit bubble built on a commodity market built on an even bigger Chinese credit bubble.” In this clip he explains why he is concerned about the Australian economy and why he sees a recession in 2013:Here is a direct link.
Many of his concerns about Australia mirror many of our own concerns about Canada over the next couple of years.
For more on the oppressive debt levels plaguing Canadians (now estimated at a whopping 165% debt to disposable income in Q2 2012) see: Canadian household debt approaching peak US levels
With the domestic economy weakened more than ever by household indebtedness, the Canadian dollar is tumbling this morning on dovish words from the BOC’s Mark Carney suggesting that the global slowdown is hurting Canadian exports, revoking the idea that Canadian policy rates are likely to be increased anytime soon:
“Elevated global uncertainty is holding back global economic growth and, thus, the demand for Canadian exports,” Carney said Monday. “There is some evidence that global uncertainty is affecting domestic activity.” See: What Mark Carney didn’t say