http://www.bloomberg.com/news/2011-08-11/envy-of-world-economy-belied-by-australia-s-ailing-industries.html
Sustained currency strength would reverse a three-decade effort dating back to Bob Hawke’s 1980s Labor government to reduce dependence on agriculture and minerals and diversify an economy that rode “on the sheep’s back.”
When the mining boom ends, Australia will see a slowdown in the rate living standards improve at best and at worst “an outright decline in our living standards as we saw in a relative sense during the‘80s and early ‘90s,’’ he said.
Meanwhile, Australia’s steel industry is losing A$2 million for every 1 cent gain in the local currency against the U.S. dollar. As the so-called Aussie jumped about 15 percent in the past year, the shares of BlueScope, the country’s biggest steelmaker, fell 59 percent.
Sustained currency strength would reverse a three-decade effort dating back to Bob Hawke’s 1980s Labor government to reduce dependence on agriculture and minerals and diversify an economy that rode “on the sheep’s back.”
When the mining boom ends, Australia will see a slowdown in the rate living standards improve at best and at worst “an outright decline in our living standards as we saw in a relative sense during the‘80s and early ‘90s,’’ he said.
Meanwhile, Australia’s steel industry is losing A$2 million for every 1 cent gain in the local currency against the U.S. dollar. As the so-called Aussie jumped about 15 percent in the past year, the shares of BlueScope, the country’s biggest steelmaker, fell 59 percent.
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