Australian right wing politicians have followed President Trump’s lead in criticizing China on many of China’s activities. The demand that China account to Australia for the COVID-19 virus was a very aggressive and short sighted action from the Prime Minister, sadly for businesses and consumers in Australia, the Chinese Government is now implementing alternative sourcing strategies for the many resources and products Australia has exported to China for many years.
So dependent is Australia on exports to China that the shrinking of exports to China is likely in itself to result in a deep recession in many sectors of the Australian economy. When this is combined with the debilitating effects of the COVID-19 virus on the Australian people and economy, and the extraordinarily large sums of money thrown at Australian people and businesses, in an effort to keep the economy afloat, the result may well be a disaster for all Australians, especially as the Prime Minister is determined to withdraw any COVID-19 support to the poorest Australians.
We see Australia entering into a deep recession and the federal government setting up the poorest Australians with starvation funding, this surely will not end well at the next federal election.
Meanwhile the USA has elected a Democrat for President and Mr. Biden will likely reverse most of the Trump agenda, just as Trump so ruthlessly wiped out the Obama legacy. Sadly for Australia, Trump’s demands for Australia to toe the line with respect to attacking China to support Trumps agenda, will not end well for Australia, unless Mr. Morrison goes humbly to Beijing and resolves the mess he has created with diplomatic relations and trade with China.
It is highly likely the USA will be pre-occupied with fighting COVID-19 for at least another year or two, and this is also going to propel the isolationists to the front of American politics and this will not be good for Australia.
For Australians, it may be wise to buy local as much as possible to try and boost the local economies across the country. As times get tough, plant out your back yards with vegetables and make food at home, rather than buying prepared food. There are many tips on the internet about how to survive in tough times, read them and put them into practice you will be surprised at how this will help your budget stretch further.
Lastly pray for the millions of American’s and Europeans who are in the middle of very hard times from the COVID-19 virus.
By Aldo Munch