Tarric Brooker

For years analysts and economic commentators have been warning that China’s economy and property sector were effectively a house of cards, a debt binge driven economic growth story that could only ever end in tears.

When the mining boom kicked off shortly after the impact of the global financial crisis began echoing around the world, some believed that it would last for decades and provide Australia with a veritable magic pudding of economic prosperity.

As much of the world winds down for the holiday season and prepares for what we hope will be a better New Year, many households and financial market analysts share something in common, they have “roast Turkey” on their mind.

As we head toward the conclusion of a challenging 2021, the Australian economy is radically different to how it was when we entered the pandemic.

It was once said the fortunes of the Australian economy rode on the back of a flock of sheep, so great was Australia’s reliance on exports of wool. But in the 21st century, the Australian economy’s fortunes now ride on the back of a 200,000 ton bulk carrier filled to the brim with the nation’s bount…

When the global financial crisis kicked off in 2008, there were concerns that Australia could follow most of the rest of the developed world into recession. But like so many times before and since, Australia’s luck came to its rescue.

In recent years there have been all manner of headlines on the coming wealth transfer from Australians passing away and bequeathing their assets to their children and other beneficiaries. Headlines such as ‘Get ready for the largest wealth transfer in history’ and ‘Australia braces for unprecedented generational wealth transfer’ have been common.

In recent weeks, as it became clear that Donald Trump would be returning to the office of US President, the tectonic plates underneath global markets and economic expectations began to rapidly move.

ANALYSIS

The falling value of the Australian dollar relative to the US dollar has been making waves in recent weeks, with our currency nearing its post-pandemic lows.