There is only one good reason not to short the Aussie dollar: it is expensive. But the grounds for taking a bearish view on both the currency and the country become more compelling by the day.

Australia has long been the land of coal, iron ore and liquefied natural gas (LNG), which is even better than being the land of milk and honey thanks to the demand for these resources from China.

Australia was among the biggest beneficiaries of China’s voracious appetite for iron ore to turn into the steel skeletons of everything from cars and railways to flats and office towers, as well as coal for the country’s power plants. As China prospered, demand for gold to decorate the necks, wrists and fingers of China’s plutocrats and their wives also soared.