A hidden time bomb
Unfortunately Australia has done everything it could do wrong over the last decade or two. Borrowing too much money is not wise. Borrowings approaching a trillion dollars from overseas leaves our future at the mercy of others.
Australia is betting on two events never happening again. Interest rates rising and recession. Both of these two factors are guaranteed at some point in the future. When they happen, our “permanent plateau of prosperity” will be challenged in a way that few expect.
Prepare your finances in the opposite manner to most Australians. Reduce or eliminate debt and have a meaningful amount of your investments outside Australia. Our wonderful period of economic prosperity over the last 25 years is less permanent than many believe.
Australia will be absolutely fine over the long term, however our debt burden is likely to cause a period of difficulty at some point in the coming years.