Greece

Tonight I listened to an industry guru talk micro and macro economics in the Australian context.

A key advisor to government, his microeconomics was spot on.

Macro-wise, not so.

By way of example he noted that agriculture was only 3% of Australian GDP and therefore we could adsorb it’s hypothetical loss within 9 months. No matter.

In fact he was all for running the economy on services with tourism as the only export. Greece anyone?

What he didn’t grasp is that the more industries that we lose then the more we have to buy as imports. 

The value of imports has to be balanced by exports or else, Greece.

Can you imagine having just one cyclical export industry?

Managing risk well would imply having a few flourishing and world-leading export industries.

Fortunately government advisers don’t matter. Nor does government it seems. They couldn’t support or promote an industry sector if they tried.

Whatever will be, will be.

The scarier aspect of the whole charade was the general level of consensus amongst the self serving CEOs, mostly from the services sector.