Comments on: A Deep-water Oil Find Off the Coast of West Africa http://www.dailyreckoning.com.au/a-deep-water-oil-find-off-the-coast-of-west-africa/2009/09/18/ An independent perspective on the Australian and global investment markets Mon, 22 Mar 2010 03:14:12 +0000 http://wordpress.org/?v=2.8 hourly 1 By: Pete http://www.dailyreckoning.com.au/a-deep-water-oil-find-off-the-coast-of-west-africa/2009/09/18/comment-page-1/#comment-101774 Pete Sun, 20 Sep 2009 12:00:17 +0000 http://www.dailyreckoning.com.au/?p=7032#comment-101774 Charles: I generally agree with what you have said, but wouldn't a collapse of USD actually be better for our loans in USD? I mean, providing AUD didn't crash aswell? Charles:
I generally agree with what you have said, but wouldn't a collapse of USD actually be better for our loans in USD? I mean, providing AUD didn't crash aswell?

]]> By: Charles Norville http://www.dailyreckoning.com.au/a-deep-water-oil-find-off-the-coast-of-west-africa/2009/09/18/comment-page-1/#comment-101565 Charles Norville Sat, 19 Sep 2009 10:00:11 +0000 http://www.dailyreckoning.com.au/?p=7032#comment-101565 Spot on Dan - the Chinese are subsidising their domestic economy and stock piling (maybe defence reasons too) Aus & Co minerals. How can even the middle class on $12,000/ann take up where the US and the rest of the World left off. Its all a waiting game. They are lending Aus US bucks that's not good when the $US collapses and we have to pay back in Aus$. Spot on Dan - the Chinese are subsidising their domestic economy and stock piling (maybe defence reasons too) Aus & Co minerals. How can even the middle class on $12,000/ann take up where the US and the rest of the World left off. Its all a waiting game. They are lending Aus US bucks that's not good when the $US collapses and we have to pay back in Aus$.

]]> By: Dan http://www.dailyreckoning.com.au/a-deep-water-oil-find-off-the-coast-of-west-africa/2009/09/18/comment-page-1/#comment-101430 Dan Fri, 18 Sep 2009 23:27:45 +0000 http://www.dailyreckoning.com.au/?p=7032#comment-101430 Does anyone actually believe in the China Recovery story? Yes, they are an awesome industrial power, with huge capacity to create real wealth (goods rather than paper money). However, any country basing its economic growth on selling to the American consumer is likely to be bitterly disappointed. The USA in the 1930s depression comes to mind, as the world's manufacturer they were hit very hard by essentially the bankruptcy of the rest of the world. Here the imbalances are far more extreme. China also has a recurring problem with bad loans, and has just increased its lending by 30% of GDP this year. Finally, has anyone had a look at the vast acres of empty expensive properties in China? Insane. Almost as bad as us. I'd still rather be in a country that manufactures a great deal than in one that continues to exist with the forbearance of creditors, but China's economic growth is fairly likely to suffer some huge shocks when the "recovery" snuffs it. Does anyone actually believe in the China Recovery story? Yes, they are an awesome industrial power, with huge capacity to create real wealth (goods rather than paper money). However, any country basing its economic growth on selling to the American consumer is likely to be bitterly disappointed. The USA in the 1930s depression comes to mind, as the world's manufacturer they were hit very hard by essentially the bankruptcy of the rest of the world. Here the imbalances are far more extreme. China also has a recurring problem with bad loans, and has just increased its lending by 30% of GDP this year. Finally, has anyone had a look at the vast acres of empty expensive properties in China? Insane. Almost as bad as us.

I'd still rather be in a country that manufactures a great deal than in one that continues to exist with the forbearance of creditors, but China's economic growth is fairly likely to suffer some huge shocks when the "recovery" snuffs it.

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