In Australia the Pla B is to tax our smaller Coal and Iron ore Miners on their China based Super Profis while taxing the big miners only on part of their Super Profits.

And the lie continues about how much is expected to be collected.

It's all bs.
And still the borrowing and waste continue.

The three mean bastards Gillard, Swan and Henry should be put on trial for treason.

Keith, Am still trying to get my head around the new deal but the way you are putting it, it would seem to be worse than the original.

The whole China situation has a bigger effect on Australia than America. The Chinese have shown that they can handle a down turn in US consumerism but we certainly cannot deal with a down turn in Chinese hunger for minerals. If China comes off the boil we will really have a depression as our whole economy seems to have become a little too singular in it's focus. Obviously trying to refocus our productivity base over a broader spectrum of areas and trading partners would help ease the issue, but this will take a generation to achieve as well as a big investment in infrastructure and industrial development. None of this will happen because we are now so intent on regaining the surplus and paying off the debt.

Dear nairbe,
Having been in one of the food producing industries put to the chop and blowing my health looking for answers for a future for my kids and watching the left wing, political correct agenda of social justice and wealth distribution, I heard a breath of fresh air from the governor of Virginia U.S.A. today on how he turned a $1.2 B budget into surplus in just 8 months. No new lending or taxing scheme, he just did the turtle and lived within his means instead of trying to spend someones else's money as all good politicaly correct left wing socialists do. Most of us have a problem sorting our needs from our wants and living beyond our means for we ignore the word of God. King Solomon a much wiser man than both you & I, said these words "What has been will be again, what has been done will be done again: there is nothing new under the sun". Principles never change, there are no free feeds someone has to pay for them. When we live beyond our means we mortgage our children's future for the debtor is a slave to the lender. Everybody has an idea to skin the cat But the sons and daughters of God are guided by the Holy Spirit. Without relationship you don't know his voice. The only one I fear is God. Lord please help me to hit the target for I know the consequesces of not putting you first. If you awaken and realise our leaders have squandered our future in the name of political correctness I recomend you turn to Jesus the "Word of God" for he is the answer.

This is an interesting and informative article. There are economists who say that Chinese economy is incomprehensible.

I have no good knowledge of economics but I think it will be made a little bit eaier, as I feel Mr. Thomas suggested in this, if we introduce the role that the state or the Chinese Communist Party plays in debt problems as in many others. "The logic is simple." It is the logics of politics, not the one of economics since Chinese economy is highly state-controled.
If A owes lots of debts to B in China and A is incapable of paying back, the debts are treated as if non-existen. If B takes to the streets, the state(CCP) resorts to "The ready use of force by the police."

Chinese economy is distorted but its aberratins are made invisible.