Mining will keep economy growing Need to increase production Prices may fall but demand will be strong

 

THE mining boom will help keep Australia’s economy from falling into a hole until at least 2013, a report suggests.

Economic forecaster BIS Shrapnel said record levels of mining investment together with a ramp-up in production will insulate the economy from recession for the next five years - even with commodity prices tipped to fall.

“We didn’t really do enough investment, with the benefit of hindsight, through the 1990s to gear ourselves up for maintaining strong growth in mineral output and what we’re trying to do now is catch up,” said Adrian Hart, senior manager of BIS Shrapnel’s mining unit.

“The next five years will all be about increasing production to meet demand from China and other emerging economies . . . and once that production comes on stream that will drive weaker prices for a lot of commodities.”

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Since I don't want to make the blog a place of constant sour news I'm always on the look out for slivers of good news.... we've been talking for a long time about the weakness in discretionary spending and just hit recently on the troubles of those (normal folk) who buy normal boats for normal fun [Jun 30: Listen to the Companies, Not the Government Reports - Brunswick Corp (BC) and Smithfield Foods (SFD)] However, there is always a bull market somewhere! Such as the nuevo rich [Jun 27: Global Millionaires - the Shift from West to East] and the booming market for super yachts. Our global gilded age continues - the gap between rich and middle class will widen. (poor - non starter unfortunately - falling farther and farther behind). I look forward from writing this blog from my super yacht ...

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