A report just published on ABC News online “China has …

Comment on Prof Gerritsen: We got it wrong from the start by Alex Nelson.

A report just published on ABC News online “China has a bigger problem than the trade war – a mountain of debt” reveals a remarkable similarity when comparing the economic management of that country to the Northern Territory, notwithstanding the sheer difference of scale between the two regimes.
The following quote from the ABC story could almost have been lifted from Professor Gerritsen’s remarks: “Their success and their ability to get promoted onwards and upwards is primarily based on their ability to generate economic growth,” he says.
“They are invariably in these positions for very short periods of time.
“If you only have three years to prove your ability as a proven economic manager, somebody who can deliver growth, then the easiest way to do that is to borrow a whole lot of money and build something big very, very quickly.”
China’s economy is staggering; Australia’s largest trading partner is China so we’ve ignored the danger of putting all our eggs in one basket; and the NT’s economy is also racking up its greatest ever debt load, too.
In the usual scheme of things, the fall of dominoes usually starts with the smallest progressing towards the largest but we seem to face this prospect in reverse order.
As the old Chinese curse goes – may you live in interesting times.

Recent Comments by Alex Nelson

NT tourism turbocharger out of gas as Feds eye off Kakadu
A cash splash of $216m versus $220m for Kakadu/Jabiru as the race commences for this year’s Federal election campaign.
Hmm, is it Tweedledum and Tweedledee, or Heckle and Jeckle? Cartoonists could have fun with this double act.


Traditional owners unite to dump Anzac as gallery site
It’s worth keeping in mind that the council-owned lease for Anzac Oval extends over the car park area in front of the school.
The NT Governent-owned lease starts from the front of the main school building and extends through the rear of the campus, so it’s not as big an area as many probably assume.


National Indigenous Art Gallery future in doubt: Gunner
This utter debacle should mean that several heads will roll, from the Chief Minister down.
If this happened anywhere else in Australia, that is what would happen.
An absolutely disgraceful performance, and I predict it will get worse before this matter is terminated.


The financial crisis in the Northern Territory
While we navel-gaze at our own dire financial situation in the NT, a report just posted on the ABC News site states: “Since its recent peak in late-August, the local market has plummeted by about 12% — as investors grow increasingly concerned about an unresolved trade war, slowing global economic growth and the United States raising interest rates too quickly.
“Sentiment is as bad as I’ve seen it for a long, long time … the negativity is absolutely rife,” Chris Weston, head of research at Pepperstone, said.
“Ultimately, the market is concerned if we do see a resolution between those two nations [the US and China] … the damage has actually been done to the global economy and we’re hurtling towards a recession.
“Equities is a confidence game, and if it goes down in China, Japan, Europe and the US, we are going down as well — there’s no doubt about that situation.”
That “we are going down as well” is us – Australia as a whole.
If recession is now on the cards, I think we can forget about assistance for the NT. The money is just not going to be there.
In my article “The forgotten lesson” I stated near the conclusion “currently both national and world circumstances appear decidedly tentative at best. We’re likely to find ourselves overtaken by events well outside of our control.”
At present it appears those events are now starting to overtake us.


Alice has hottest day on record
@ Fiona Walsh (Posted January 2, 2019 at 3:12 pm): Thank you, Fiona, for your most informative post.
The closure of the CSIRO in Alice Springs is, I consider, one of the most short-sighted and regrettable decisions ever made as far as Central Australia is concerned but typical of the myopia that afflicts contemporary coast-oriented bureaucracy.
Maintaining the presence of the CSIRO in the Centre would surely have been as vital in these times of worsening climatic conditions and consequent impacts on the environment as it ever has been in the past.
However, the loss of the CSIRO in Alice Springs is symptomatic, and certainly symbolic, of the lack of concern and real regard for so much of the real Australia.


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