Although it might sound all very grim there will be some positives that have every chance to neutralise many of the negatives. In the current climate a weaker $A might not be a bad idea it will help our exporters and dampen imports, so people won't be able to spend money they don't have or take overseas holidays that will become too expensive. Unemployment must rise putting more pressure on the welfare system that labor will with its socialist policies be able to afford (I don't vote labor). People will just have to stay put in their homes until their personal debt to income ratio stabalises. Gov't will continue to spend on infrastructure that will keep sectors of the equity parked propped up. The reserve bank dropping rates will only help push down the $A and help our economy in the event it does go pear shaped.
It just appears co-incidental that just prior to an election we get a barrage of fearmongering. An incoming labor govt will affect me to the tune of a reduction of 20% of my income so I don't look forward to it but in saying that it will also dampen my spending to the most essential of items without much left for luxuries, so maybe a slowdown of the Aussie economy in the context of all the other factors occurring globally may not be such a bad idea. It may even help us to live within our means?
