Another Seinfeld Election for Australia – Bloomberg 09-01-13

Salient to Investors:

William Pesek writes:

If there were ever proof that ex-PM Julia Gillard was not defeated for her performance, this election campaign is it – Abbott and PM Kevin Rudd have offered nothing new or insightful to voters, and neither have come up with a plan to redefine Australia’s economy and its place in the world.

The run-up to September 7 does not bode well for Australia’s future. Chinese demand is slackening, commodity markets are in turmoil, climate change is intensifying.

Joseph Stiglitz has warned about a crisis Down Under, citing deficit fetishism. Australia’s national debt is comparatively tame: if government debt peaks at $330 billion in April 2016, as expected, it will still only be equivalent to South Korea’s currency-reserve holdings.

Australia needs high-return investments in technology, education, broader Internet access, and a state-of-the-art rail and highway system if it is ever to develop a growth strategy that does not depend on selling commodities to China.

Australia is the world’s 12th biggest economy.

Read the full article at  http://www.bloomberg.com/news/2013-09-01/another-seinfeld-election-for-australia.html

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