Belly & Rehctub,
It is true Belly that we are not in as big a mess as many other
countries. However it is more by good luck than good management.
You may have heard this morning about our jump in unemployment.
True it has been offset to some extent by 46,000 new public servants.
However they are an overhead on Aus.com.au.

Just think about the situation when the mining boom stops.
Not if, when !

On the other thread I put up the link to an article about China.

http://tinyurl.com/3e74fvy

Read that and see if you are so confident for the mining industry.
It is not the govt's fault of course, except they have not done
anything about it.
I think I know why they do not seem to understand what is happening.
It would mean tearing up a number of international treaties such as
the WTO and globalisation restarting manufacturing, putting on tarrifs etc.
Ultimately there will be no choice, but by waiting until it is both
obvious and forced upon us we will go through a very bad transition time.

It is moments like these, true, that brings me to ask is it worth while?
Is debate , is discussion , worth while, note I am told I am blind to a truth that does not exist.
Mr say it Again, Paul [how I hated him for that!] Kieting, told us we moved slowly but firmly to wards open world trade, and away from manufacturing industry's.
Take away, NOW! our gains from that world trade.
Put manufacturing along side the jobs world trade has made.
Tell me gentlemen , please, if high wages bought about the GFC, if people do not work long hours why is our mining industry thriving, it like construction works 60 even 80 hour weeks and pays much more.
Fanny Mae and Freddy Mac American house lenders , gave loans to people without income!
If Rechtub you got your wish, I think you would reduce wages by about 20% our economy would fail in a week.
100.000 houses be reposed in a months banks fail .
It may/will one day take place, we long ago, turned credit in to a Ponzie scheme.
Too much spending of money we do not have, using house values as security that are likely to be half of what is owned will bring SOME DOWN.
If enought fall we all do.
One other important thing, you can not walk away from, workers want to leave some industry's, wages are too low, Butchers are better with a stop and go bat in their hands than a knife.

Butchers are better with a stop and go bat in their hands than a knife

And there in lies our problem.

Why bother doing a trade if one can earn better money with minimal skills.

As i have said many times belly, inflated living costs should not be burdoned onto employers.

I truly am sorry mate.
You know my story's about small business men/women calling me in to help are true do you?
Can you understand the product of a persons labour, is just as much a product as rump steak.
Would you sell me your best at less than cost.
Rechtub, the sky is not falling.
We do not have massive unemployment.
If we did Butchers would stay behind the counter, tradesmen keep the tool bag on.
The product they sell is of value to them ,and the employers who activly poach them.
Bright businessmen and women told me this, I have chosen to pay above award to keep my staff.
I/we just get them up to skills and they go!
YOU mate prosper yes you do! on the disposable income of workers.
Who pays for your snags?
Rechtub, shortages of workers in some industry's see,s higher wages as bosses compete for workers.

http://smh.domain.com.au/real-estate-news/homes-are-overpriced-but-how-much-20110914-1k9d9.html
While the thread has lurched away in other directions, ones I am quite willing to follow.
The link gives evidence for my thought we are in a housing bubble.
And the true Crisis may result.
We know the GFC is far from over, at best some sweep it under the rug, but no true way can be found around the monetary Crisis we are yet to control.
By the way, my lurch in another direction.
One day, because we will be told, no other way exists to control investing/banking/money we will slowly but with certainty have one single world wide system/control in money matters.

Belly said:
We know the GFC is far from over, at best some sweep it under the rug,
but no true way can be found around the monetary Crisis we are yet to control.

Here I think is an explanation for why Belly is right.

It seems that there are two peak oil situations developing.
One is Geological Peak Oil and the other is Economic Peak Oil.
The link below is to an article by Chris Skrebowski who is the
publisher of an oil industry magazine.

The argument he presents is that as oil production grows more
expensive developed economies will not be able to afford it.
This will have the same effect as demand equaling supply with
increased prices.
However the marginal costs do not affect developing economies
to the same extent and leads to this quote from the article;

This in turn poses a terrifying question: Would this higher price
tolerance mean developing economies could keep developed economies
in growthless stagnation by paying oil prices that were just above
those that bring developed economies to an economic halt?

To fully understand the above you need to read the article.

http://www.odac-info.org/newsletter/2011/09/16

I think this would mean that our two part economy would continue
with eastern Australia going into permanent depression.
Western Australia would continue until China swapped to their African Mines.

Politician test:
What do you understand to be the difference between economic and geological peak oil ?