Seven ministers put Tony Abbott on notice – Sydney Morning Herald

English: Tony Abbott in 2010.

English: Tony Abbott in 2010. (Photo credit: Wikipedia)

Here’s a powerful, breaking, lead story, shared by the Sydney Morning Herald. It’s an interesting read. Check it out!

via Seven ministers put Tony Abbott on notice – Sydney Morning Herald.

It seems that the knives are out for Australia’s Prime Minister, Tony Abbott. Extreme care is probably required because of Australia’s economic outlook, plus the national security considerations.

As an outsider, I would suggest that Australia has perhaps lived beyond her means benefiting from the enormous wealth of natural resources? Now that natural resources are going through a tougher time, so is Australia. A second observation is that Australians carry very high debt levels to support domestic property investment, so with a weakened economy, there’s an increased risk of bursting the property bubble? Thirdly, Australia needs to face that austerity is the right shock policy for financial weakness –  like in Europe, structural reform is essential for international competition.

For me, despite Tony Abbott’s perceived weaknesses, a political coup of a serving Australian Prime Minister would appear to be highly risky.

Thoughts?

House prices: Negative gearing ‘a bigger problem’ than Chinese investment – Sydney Morning Herald

This is the top story in the Sydney Morning Herald. It’s well worth a read. Check it out!

via House prices: Negative gearing ‘a bigger problem’ than Chinese investment.

It’s interesting that the UK Conservative Party led Coalition has taken a very different approach to domestic property to that of a conservative government in Australia. In the UK, the Government has guaranteed the debts of first time home buyers, so that banks will be more aggressive with housing finance. Also the European Commission is proposing rules to tighten buy-to-let finance.

I worry about Australia. It seems to be increasingly dependent upon its mining wealth and increasingly strategic relations with China. Also Australia must be at risk of a property bubble bursting?

Any thoughts?