It is the depth of the poo this time round that is of concern. UK is already up to their armpits, Eurozone is looking very shaky and China is not quite as rosy as you seem to think. Even with growth at 8%, which is not certain, China does not create enough jobs to keep the peasants happy. If they slip to 5% then they are truly in it. They may have plenty of money but ít is essentailly worthless paper if the foreigners who issued it devalue their currencies enough. UK has already done this and it is causing alarm in Europe. America will be next if the bond issues start to fail and they crank up the printing presses.

I just don't see how you think Australia is well insulated from all that. The mining boom has now turned into a fading echo and this will ripple back through the economy faster than a cheap vindaloo. The drought is still messing with us so agriculture is unlikley to pick up the slack. What else does Australia really have? Domestic consumption.... of stuff, the purchase of which has been funded on a credit binge, which was in turn funded by overseas lenders.

The government has already had to intervene in the mortgage market, the car loan market, guaranteeing bank borrowings, spending the surplus, which are hardly confidence inspiring moves.

Australian are going on a diet in 2009 whether they like it or not.