The Courier Mail’s Cringe-Worthy Headline — Economic forecasts show Australia leads the world

The Courier Mail in Brisbane had an article with the cringe-worthy headlineEconomic forecasts show Australia leads the world.”

Nowhere in the entire body of the article is credit given to the architect of our success, the Premier of China, Wen Jia Bao (my favourite former geologist) who set the goal of 8% growth for this year and announced at Davos in January 2009.

Of course both major political parties would like to claim credit and in fairness both can claim some credit, the Coalition for building the war chest and the ALP for realising the seriousness of the crisis about 12 months late. Neither showed any awareness in the run up to the election of the Global Financial Crisis.

A better headline would have been, ” Crisis mitigated – Aussies are cheaper miners than Chinese.” We can get coal out of the ground in the Bowen Basin and ship it to Shanghai cheaper than the Chinese can do it. This may not be strictly true since the Chinese have to take something of value in exchange for all those salad shooters and margarita makers that we Australians like.

 

 


 

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Thank you Premier Wen

 

 

Premier Wen, when he was in Davos, said that China’s goal was to grow the economy by 8% this year. He then outlined the plan that the Chinese government was going to implement.

 

One of the results has been that Australia has had a trade surplus of AU$ 5.1 Billion for the 1st quarter of 2009. We may even have small growth in the economy. My personal sentiment is that we will have growth in 2009.

We are still running a current account deficit, so life is not perfect and this also means that we are more in to an orbit around the Chinese economy.

From the Courier Mail.

8% – Why Premier Wen Jiabao 温家宝 is my hero

Best New Years News

Premier Wen Jiabao

Premier Wen Jiabao

The best economic news this month has been from Premier Wen Jiabao 温家宝 .In his speech that Premier Wen gave at Davos yesterday 28 Jan 2009, Premier Wen annouced that China’s goal is 8% growth for 2009, he did qualify it by saying it would be difficult but it was achievable. Importantly his strategy is not just based on hoping Walmart will buy stuff but a lot of money will be thrown at improving infrastructure and health for all Chinese people.

Premier Wen is talking about spending 16% of  Chinas 2007 GDP in infrastructure developement. If Prime Minister Rud was to commit to the same thing then in Australia we would be throwing some of the order of  AUD $195 Billion dollars at our infrastructure.

If there is hope for the Australian economy, this is it.

I can’t believe the Australian, the Fairfax press, or the Australian Broadcasting Corporation have not made this one of their major headlines. Do any of these main stream media outlets believe that we will come out the recession by selling houses to each other.