- Australia is in the grip of a Chinese fuelled property
boom whilst the rest of the world languishes in financial crisis.
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- The Chinese government has given its more well-heeled
middle class citizens the green light to dump its US dollars into Australian
top-end luxury property.
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- As of March 2009, the Australian Treasurer, Mr. Wayne
Swan, through the Australian, Australian Foreign Investment Board (FIRB),
opened the floodgates to the Australian residential property market by
removing restrictions on foreigners buying property in Australia.
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- Previously, only foreigners with permanent residency
could buy Australian residential property without FIRB approval. Now, anyone
with a temporary residency visa is eligible to buy without reference to
the Australian government.
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- The policy move has been squarely aimed at Chinese hot
money earned from years of exporting cheap consumer goods to the USA.
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- The Australian's Treasurer's reason for the move was
to add to the government's own stimulus package efforts which has helped
the nation's economy largely shrug off the global financial crisis.
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- Critics say the Australian FIRB policy change was, in
fact, a consolation prize for it having earlier this year rejected the Chinese
Aluminium Corporation of China (Chinalco) tilt to buy Rio Tinto. It
is understood the Chinese were furious at being blocked in making the $19.5
billion investment. China is set to replace Japan as Australia's biggest
export market.
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- The high-end, luxury Australian property market is currently
red hot with China money pouring into hard assets before, what some analysts
say is, the coming US dollar collapse.
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- Residents in the elite up-market CIty of Booroondara
in Melbourne, Australia's second largest city, are furious over the
flood of US dollars which is distorting and pushing them out of the market
and instantly Asianizing their neighbourhoods. Australia has a population
of 21 million with a similar land mass to the Untied States. The China's
population is 1.3 billion and only a short flight away from Australia's
two populous cities cities Melbourne and Sydney.
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- The newly-adopted open door policy by the Australian
government has many Australians infuriated over the distorting, disburbing
financial and social effects it is having on the society.
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- More informed Australians are pointing the finger at
the US Federal Reserve. Citing the cause and effect of the Fed's irresponsible
money printing and abusing it's global reserve currency status. They claim
the Fed is exporting inflation pressures and America's growing problems
to far-flung nations around the globe. Hot China money is an effect of
the Fed's irresponsible actions.
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- Recent reports indicate the Chinese government is so
concerned about the imminent US dollar collapse, that it's also encouraging
its citizens to buy gold and silver. Until recently, such purchases were
restricted transactions for Chinese citizenry. Since the change, Chinese
banks have been inundated by worried Chinese buying Gold and Silver. The
price of gold is currently over $1,000 and silver is over $17 per ounce.
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- Chinese authorities are encouraging wealthier Chinese
citizens to invest offshore in stable nations. To fuel such investing,
China recently eased its longstanding restrictions on its citizens sending
money offshore. Australia's commodity-rich economy is of value to China,
and therefore it is considered a favoured investment nation in which park
plentiful but dodgy US dollars.
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- The Australian currency is a commodity currency. When
the US dollar falls, the Aussie traditionally rises. One US dollar currently
buys AUD$1.13 - down form $1.40 last year. Currency traders expect parity
by early next year, or in the event of a US dollar collapse.
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- Add to all these ominous signs China's stated intent
to default on what it claims are fraudulent derivate contracts hustled
by bankrupt Wall Street banks. Critics of US monetary and fiscal policy
say a dollar collapse is inevitable. China clearly thinks the dollar is
in danger and expressing same...not by words, but buy its actions.
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- Is the unlikely Australian residential property market
boom the latest canary in the mine for the US dollar? Some would
say so.
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- More....
- Chinese Buyers Fuel Top End Property Boom
- http://www.theage.com.au/business/chinese-buyers-fuel-
- topend-property-boom-20090918-fvga.html
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- Rio Tinto Announces Its Deal With Chinalco Is Dead
- http://news.xinhuanet.com/english/2009-06/05/content_11491886.htm
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