Even if he were right there would be nothing to fear. Private companies are borrowing abroad, just as they did in nineteenth century America, to invest in profitable opportunities. If these fail, then only the foreign lender suffers along with the Australia borrower. If, however, the imports are a product of slack money supply then the free market cannot be held responsible. To state that no matter what the IT deficit will continue to grow is just plain silly.
Exports are the price of imports.
This means that sooner or later IT imports must be paid for out of exports. If we wish to continue importing these goods then we must either redirect spending from other foreign goods or sell assets. This fact should be blindingly obvious to anyone with any economics training. Yet it seems to have completely by-passed Davidson. But then, Davidson might really believe that consumers and producers are mindless.