Hi,

I’m sorry to be coming off as pessimistic, by all means I look at life and the world in which we live, in a very optimistic way. Every one is entitled to an opinion, and my post relates to my opinion only. If you believe that the global economy is in healthy shape than the best of luck to you and the investments you choose to pursue in the future.

I guess my angle on the state of the global economy is derived from advice given by the big names in the investment world. I am really just broadcasting what I have learnt from them and what they believe is going to happen. I have researched this by reading their books, by following their websites, by listening to their advice. I trust these people and their advice. They are experts and the most sophisticated investors in the world. They are the same people who accurately predicted the 2008 global financial crises. They are in fact the same people that inspired Steve McKnight to go from 0-130 properties, publish a book about it, open this website and campaign to educate people about the most responsible ways to invest in real estate and protect their wealth. If you read the first few chapters of his first book, he even mentions the very basic financial concepts that these top notch investors have been preaching for decades!

And now, in 2013 these same top notch investors are all warning people of another global financial crisis this decade, and one far worse than the last. I would rather not ignore these people, I respect what they have to say, and yes they could be wrong, but the more I research the more I doubt that they are wrong.

To clear you up on predictions for the Aussie dollar. All I’m saying is that it is obvious that China’s growth has provided a lot of growth for Australia. Look at our Coal and Iron Ore exports. For quite some time our economy has prospered on the benefits of this relationship. But we are now experiencing a slowing Chinese market, so if China reduces purchases of Coal and Iron Ore, the Australian economy would surely feel some pressure. it could be one of the many causes of potential slowed growth in the real estate market or contribute to a pop of a real estate bubble. Again, this may be wrong, I’m only going off my research, but this is what the experts are predicting. Not long ago an article in the Sydney Morning Herald was titled “buckle up-dollar exits safe haven” and discussed how the Aussie Dollar is facing sharp losses in the next 12 months as it rediscovers its historic link to commodity prices. Commodity prices have dropped over the past two years, could be a sign of a slowing Chinese economy.

As for the world economy at present, perhaps you should divert your attention from “gremlins” (yer i remember watching it as a kid) and rather focus on the news. The economic situation in Cyprus, unemployment in Europe, Rioting in Egypt, the monetary policy of the US, threats from other nations to the US, the list goes on! I wish it did sound optimistic, as i said I’m traveling the world, I’ve seen some of these places first hand and if I could change it so everything was looking up I would! but unfortunately it’s out of my control and everybody else’s for that matter.

I hope this clears things up and thank you very much for your comment, every comment I receive helps me learn more about the economy and inspires me to continue to research about where it could be heading.

Kind regards

Chris