The US cannot now avoid a serious recessionary cycle. The Federal Reserve knows this and also knows exactly what it is doing. The devaluation/inflation approach they have taken transfers part of the loss overseas, will force a real wages adjustment (downwards) and will position the US manufacturing industries for a solid and perhaps rapid recovery. The intervening turmoil will be blamed on a Democrat government. To extricate themselves from this political hell hole the Democrats will, in the first instance, need to overhaul a ridiculously expensive and litigious health system. To establishment of a better economic environment they will need to copy the civil law benchmarks of Canada and some EU nations. Without such reform the US can expect an ongoing recession with no end in sight.

Economically, what does all of this me to Australia? Nobody really knows but resources in the ground have an intrinsic value that will outlast economic uncertainties fluctuations and crashes. There is also nothing wrong with forgoing a few potential profits in maintaining a liquid holding position in the short term.