The fault lines of the Rudd stimulus package(s)

In Beijing alone, a drive around the new developments reveals evidence of massive bank debt. Nearly 46 square kilometres of commercial floorspace was built in Beijing between 2006 and end 2008. Today more than 10 square kilometres of Beijing's futuristic skyline is vacant, including entire empty office buildings, apartment blocks, secured luxury housing compounds, and shopping malls. Closer inspection (if you are allowed), reveals the alarming extent of deterioration. In Shanghai and many other "thriving centres", the vacant space is repeated. Despite the additional 29,000 rooms provided by the 126 new hotels in Beijing in 2008, occupancy during the Games peaked at only 67 per cent instead of the projected 80 per cent. Today, hotel occupancy ranges from 10 per cent to 30 per cent. Due to lack of response to use iconic Games venues, plans are in hand to demolish most structures and build shopping malls.

Globally, the trillions wiped from the financial systems will possibly take a decade or two to recover and banks and other financial institutions will modify their lending practices.

Under such circumstances, and with China's current overcapacity and the further increased capacity forthcoming from its stimulus package, the question for the future will be. "Who will buy China's massive production and how will it be financed?"

Canberra will need to look closely at our immediate to medium term economic strategies if they include reliance on China's re-emergence as a major consumer of Australia's resources. One needs to look closer at China's foreign resource strategies and more especially at the financial gymnastics to be employed by China's banking system to fund its stimulus package.

This economic crisis has revealed the weaknesses in the current globalisation model and this will need modification to allow a return to a form of acceptable balance and employment opportunities globally.

America's major employers of the iconic steel, automotive and aviation industries have also become victims with massive and increasing unemployment.

Answers may lie in the manner in which we address global warming and human rights and balance national interests with corporate and multi national influences. Whatever the outcome, balance of national economies and employment will become domestic priorities, and this is rapidly becoming evident within the EU.

There will be winners and there will be losers

2009 is a vastly different economical era to that of the Great Depression. A combination of responsible climate change measures, tariffs and even some protectionism, may achieve a level of refinement to avoid the chaos of the 1930s.

Can we trust our lawmakers to make the right decisions?