- As Good As Gold Australia
In this discussion, Brian and Darryl Panes from As Good As Gold Australia interview Chief Economist John Adams who shares his personal experience of being on the front line of the lock-down. The economic impact of the lock-downs in Australia have had a catastrophic impact on the Australian economy, especially in the two most heavily populated and productive states of New South Wales and Victoria. John discusses the ramifications of these lock-downs in detail. It didn’t need COVID-19 to place the Australian economy in tatters, on the contrary we were vulnerable, as were most countries of the globe well prior to the pandemic. COVID-19 was simply the catalyst. A soundly run global economy, operating on a gold standard would’ve been far better poised to take on the challenge.
Unfortunately, we were not suitably prepared. A prominent American media commentator’s recent response to our handling of the pandemic, “Australia has fallen – who’s next?” Chinese property developer, Evergrande is a perfect illustration of the fragility of our current financial system. Global growth has been based on debt, debt and more debt, and now the devastating consequences are coming home to roost. Evergrande has liabilities totaling around US$300 Billion, and shares in the company have collapsed by 80%. Could Evergrande be China’s “Lehamn Moment”? We’ll know soon enough!