Australia: commodities boom “is over”

by Jeff Nielson, SilverGoldBull:

Fire Australia’s government, or at the very least its totally clueless Resources Minister, Martin Ferguson. Note that Australia is almost entirely a resource-producing (and exporting) economy. It is situated literally right next door to 3+ billion people in Asia who are in the early stages of catching up to Western industrialization (and living standards) – and this clod proclaims the commodities boom done?

What we have here is a classic illustration of why none of the infantile politicians in any/all current Western government are worthy of keeping their jobs – and with its Anglophone heritage Australia is an “honourary member” of this club. Mining projects (in particular) tend to take at least 5 years just to get off the ground, especially the sort of mining mega-projects of which Australia is particularly fond.

These mining projects then need markets for their production for many years to come, just to justify the total investment in mine construction and related infrastructure. Thus such planning requires thinking from a perspective which encompasses decades rather than mere years.

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