Our second largest trading partner is not in great shape either…
If there wasnt enough to worry about with the Chinese slowdown, then a debt crisis in Japan should be enough to keep the Aussie bulls at bay. As our second largest trading partner, Japan still pays a significant part in Australia’s economy.
Whilst Japan shouldering the largest government debt in the world may be nothing to worry about, when it is combined with slowing exports to China, you have a recipe for potential pain ahead.
Nothing may come in a military sense of the territorial spat between China and Japan over a small group of islands, but the silent economic patriotism is definitely having a marked affect.
But yet there appears to be some greedy souls pouring back into Aussie banks and miners leading to a run on the All Ords over the last few months.
I think we are in the eye of the storm. Perhaps the storm hasn’t even started yet.. Caveat Emptor!!!