Update 30/10/2009: Apologies for the previous chart - an honest mistake was made and the GDP figures used were quarterly and not annual. This has been fixed and the charts below are accurate. This does not change the essence of the story - although it is not as bad as first thought it is still a huge problem! If you received the FLASH update before 1500 AEDT please download the correct version here.

Talk about a welfare state!

What is going to happen when resource prices fall? Who is going to support the economy?

Unfortunately, the nomenklatura will attempt to dig themselves out of this hole by increasing government involvement in our lives. And who is going to support a move to more government? Why, the significant and growing portion of the country who, as Mises said, rely on the government to provide "...thousands and thousands of people with safe, placid, and not too strenuous jobs at the expense of the rest of society."

When China stops picking up the bill and the party ends we are going to have one hell of a hangover!