Yabby, can't resist this discussion;
My take on it all is the the financial system is in a mess internationally
but that we cannot expect to remain immune for much longer.
Here is my list of things going wrong.

1. Growth world wide is low, countries having problems increasing it.
2. Even the IEA now admitting peak crude oil occurred 2005-2006.
3. China cannot keep on at approx 10% growth. 7 yrs would double it.
4. We are borrowing $100M + a day.
5. Politicians world wide ignoring these problems.
6. Only Aus pollies to mention these problems, Christine Milne and
Barnaby Joyce are ridiculed.
7. Food shortages world wide threatening.
8. Phosphorous shortages developing.
9. Governments finding the economy is not supplying sufficient funds.

My reccomendations are;
Get rid of debt.
Start learning how to grow vegetables.
Start rethinking how to reorganise your finances.

Thats enough for now, what are your suggestions ?
This is the first time the world can expect to press the rewind button.

Continued; I went off to watch midday ABC news.

I have noticed that we are spending approx $30 Billion per year on oil.
This is almost as much as we are spending on the NBN, but every year.
This figure could double in only a very few years.
Perhaps, 20% higher by the end of next year.
Nothing will be done until the gag is lifted from Martin Ferguson.

It is this cost of fuel that is limiting what can be done by government.
It comes directly out of the GDP, reducing income and profit & tax.
Remember it is now three times what it was about 2003. You cannot
increase overheads like that without major impact on the economy.
It is also directly impacting on the price of food.

When China pulls the plug on its growth engine watch Australia catch
the Euro & US disease.
Here is a tip, listen carefully to the financial experts on the TV/radio.
They are all talking about recovery, growth returning, China growth
and how we are protected from the European and US borrowing problems.
Not a word from any of them about the cause of lack of growth.

I think I mentioned it once previously that my son is a financial
advisor. I asked him what he is advising his clients.
Well things have not changed much, international and Australian shares
trusts etc etc. I said knowing that peak oil is now with us should
you not be changing your recommendations ?
His reply was that no one would want to invest in the way I suggested
and they may as well shut the office doors and go fishing.

Even those who know whats coming really don't want to know.

If you need to invest some money, look at energy companies of one
type or another. Fixed deposits are OK now until the real returns
gets too small, as it will before long.
Which raises the point, can government guarantees of the
banks hold up ?
Will the government crumble or just print the money to met the guarantee ?

ohh bazz
govts ARNT ALLOWED TO PRINT MONEY
really..only the fed can order the mint to do it..[or not]
and bankers own the fed..govt needs to borrow EVERY PENNY

ok the fed/costs of printing..ANY face value note
is arround 7 cents each..but it can create UNLIMITED credit..[for govt TO LEND..from the bankers...WITH INTREST..]

personally i never stopped collecting the poor mans gold
[silver..then the fake silver..the fed replaced it with in "666"

you recall that predecimal coin..6 pences pennies etc
threepences..and pounds...

[well THAT POUND*NOTE..had a promise wrote upon it...saying this note can be taken to the commonwealth bank..and ONE POUND of SILVER..[sterling grade/quality/QUANTITY...*weight9..given in its place]

see mate..the coin AFTER deciminalisation...our coin..wasnt SILVER
it was nickle...[recall the queens-head..*is ON the coin..to assure the quality..[lol]..of silver..but now she has here face..on NICKLE

any how the nickle coin..now has a HIGHER VALUE
than its weight in nickle...[so i dont collect paper/plastic..now i collect nickle]

i used to collect copper coin too
near the end...a one cent copper coin..had 5 cents of copper in it

we dont need to hold gold
[most of the people..ONLY hold a promise of it at any-rate]
you see..EVERYDAY..in usa alone..

5 times the..TOTAL AMMOUNT..of all gold..EVER mined...is traded

one day people going to be left with THE PROMISE..
but not the gold..*to back the promise...

even last year there was a REAL gold shortage..its only fake trading..by the gold "bond"/paper market...that stops the collapse...

but its comming..anyday now
those holding promises..will be left holding EMPTY promises

talk is cheap

One thing is for sure, we live in interesting times!

Boaz, if you have enough money to invest in gold, you have
nothing to complain about.

*but I don't think that interest rates themselves are particularly key to our economic future.*

I fully agree Pericles, I simply raised it as the next short term
disaster that I can see happening, for those mortgaged to the roof
on the back of sky high house prices. The Economist has been pointing
it out for years.

I am also aware as to how difficult it is to predict the future.
Last week I sold a bit of wheat, this week the price jumped 10%,
because it won't stop raining in NSW. So IMHO the most dangerous
position to take, is to think that any of us know it all. Better
to accept that we know that we don't know and spread our risks.
So that is what I try to do.

As to the longer term, I think Australia will simply ride on the
back of mining to pay the bills.

*Possibly this would encourage people to sell up in the big cities, pay off their mortgages and move to rural areas*

I think that is already happening, Lexi, certainly in my town.
You can still buy a house for 200k$ here, or 100 acres for 150k$.
So city slickers are moving in, all cashed up with money from
city real estate.

*If you need to invest some money, look at energy companies of one
type or another*

I tend to agree Bazz, but the Australian market lacks solid oil play
companies, most are focussed on gas. Gas is less secure, as there
are some serious contamination issues with coal gas and shale gas.
The investment cost of export terminals is also enormous, unlike oil,
where they simply pump it into a ship.

http://www.news.com.au/business/business-owner/sold-aussie-web-gurus-hit-web-jackpot/story-e6frfm5i-1225965140497

btw Pericles, this story warmed my entrepreneurial heart. A couple
of Melbourne guys, starting with nothing, creating a 90 million $
company in a couple of years.

It just goes to show, that despite the moaning and groaning, the
internet has opened up huge opportunities, for those who choose to
think outside of the square.

A good friend of mine took advantage of Australia's comparative
advantage of growing sandalwood and became the major supplier to
French perfume houses.

So we are still a land of opportunities in many respects. But
to be honest, the majority are doing so well in global terms, that
as a nation we have become pretty fat, lazy and complacent and don't
realise how easy we really have it.

Absolutely, Yabby.

>>Pericles, this story warmed my entrepreneurial heart. A couple
of Melbourne guys, starting with nothing, creating a 90 million $
company in a couple of years.<<

A couple of Sydney guys did much the same thing with Atlassian, which receives award after award for innovation, export, you name it.

http://blogs.atlassian.com/news/2010/07/atlassian_closes_60_million_investment_from_accel_partners.html

http://www.exportawards.gov.au/Case-Study---Atlassian--NSW-/default.aspx

Unfortunately, as a country we have absolutely no comparative advantage in software development. And because the barriers to entry are so low financially, we are competing globally from the very first minute.

That's not a bad thing, of course. But it does mean that there is a finite limit on the number of these success stories that we are able to produce each year.

Interestingly, I see no reference to any "help" from government for either retailmenot or Atlassian..