Australia faces economic turbulence from U.S. meltdown: PM

[rodeodance]

Source: (Reuters) -

Australia faces economic turbulence from U.S. meltdown: PM

1 hour, 16 minutes ago

SYDNEY (Reuters) - Australia, one of the best-performing advanced economies, faced looming economic turbulence from the subprime lending meltdown in the United States, Prime Minister John Howard warned on Sunday.


On Friday, Australian Treasurer Peter Costello had warned of an approaching international financial "tsunami," with China at its epicenter.

"We are entering a more difficult time of economic management. There are storm clouds on the international economic horizon," Howard told Channel 9 television on Sunday.

He was speaking on the campaign trail for Australia's federal election on November 24, which the coalition government is fighting largely on its economic credentials.

Read more: http://news.yahoo.com/s/nm/20071028/wl_nm/australia_economy_dc;_ylt=AuDD4c0eLpAPTaO40LqTiVms0NUE

[cliss]

1. Interesting quote ~

".. an approaching international financial "tsunami," with China at its epicenter."

What's CHINA got to do with the upcoming meltdown. This problem, for the most part, has been a US phenomenon = the biggest scamsters on the face of the planet.

Europe will be facing its own meltdown. But why would China be at its "epicenter"?

[sorrywrongemail]

2. I think China holds a lot of the securities

that are backed by US mortgages. Also their economic statistics are suspect and they're battling inflation.

[Toots]

3. China is THE emerging Powerhouse in the financial world

China owns a good portion of the US Debt and is buying up oil at an unprecedented level. It is changing the way oil is bought in the world market by buying in Euros instead of US Dollars as has been the way in the past. By doing this the US Dollar has lost it's influence and value. When Bush* took office the Euro was valued at only three quarters of the US Dollar and now it is valued at almost a 150 percent. Basically doubled in value while the US Dollar has shrunk by almost half. The Chinese are a lot responsible for this and it isn't going to get any better anytime soon. American foreign policy is mostly to blame but China has taken advantage if the situation "Big Time"

[Barrett808]

4. Not to mention the ongoing *megadrought*

That has to be producing a little "economic turbulence" too.