the perfect storm.

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    The liklihood of the following four events happening is growing and now has a reasonably high probability.The cumulative effects will belt the Australian economy in a way that has never happened before.
    1.China slowdown.This has already started and when they stop building empty cities and their commodity stockpiling ends, the slowdown coupled with infation will send shockwaves around the globe, affecting Australia more than any other country.
    2.The mining tax which will take more tax from both the energy and mining sectors.This will impact on everything from the stock market and super funds, to unemployment.
    3.The carbon tax.This will certainly result in some investment moving overseas.It will also cause unemployment, and cost of living increases.This will cause the economy to further contract as all those that are not compensated cut out their discretionary spending.Those that are compensated will find that they will be seriously shortchanged.The irony is that this tax will not make any meaningful contribution to carbon reduction.This tax will certainly impact Australia but none of the major polluters are following us.We are indeed lemmings heading for the cliff.
    4.Energy prices will continue their inevitable rise, impacting on just about every commodity.

    Be concerned, and above all prepared.
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