Death of Australian mining boom...

Sep 4, 2012 Full story: Suria 12

Australian Prime Minister Julia Gillard Tuesday denied claims that the mining boom was over, saying its benefits would last decades even as a key forecaster warned more projects may be shelved.

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Since: Jul 12

Location hidden

#1 Sep 4, 2012
Well I know everybody is looking at the decline in the price of iron ore and thinking how it will negatively effect the economy and of course their jobs. It can safely be said that the net effect would have to be negative not so much because of the drop of iron ore price but because of the world wide depression.

The high price of iron ore itself has as many negative effects as positive and likewise the drop in price will have equal positive effects as negative effects. So, how can we say it will be a net negative even though the direct impacts are both positive and negative.

The high price of iron ore gives rise to positive investor sentiment from foreign investors. Our boon during the resources boom is the attraction of investor money seeking a return but particularly foreign investment. We don't have much steel manufacture in Australia so possessing loads of iron ore is of limited benefit to Australia. However, China and Korea need lots of it and it's of great benefit to them. This is the magic of trade that different Nations can compliment each other to fulfill a deficiency of another Nation. Thereby, we are always dependent on other Countries for our National well being and as a result our personnel good.

So, what now when the international demand for our iron ore dries up and the demand from China and Korea go with it?

The old system of monopolising a commodity or product then charging as much as the market can bear is starting to breakdown even though the business and political elites are trying to continue this paradigm with injections of money supply from the Federal Reserve Bank. Still the world economy is shrinking.

The sooner we realize that the rules of the game have changed and understand the new world we live in. The sooner we can adapt.

However, understanding the rules have changed is one thing. The other will be to change our nature and this will be the most difficult thing to do. The first thing we need to do is understand the new integral world where we are dependent on each other and cannot do without each other. This education will prepare the world's population when the inevitable harsh blows occur from an economy in free fall. Then the knowledge of the integral world will garner support in the population for an integral approach to remedy the economic crisis. This would also help avert the danger that is lurking of a populous government coming to power and instead of addressing the crisis in an integral approach lead the people down the path of isolationism and trade protectionism to their detriment.

Isolationism and protectionism would be disastrous. The solution to our social and economic woes are by proper engagement in the integral global system which we now find ourselves in. Not by trying to escape from the circle where there cannot be escape. The education of the population needs to start urgently to head off catastrophe.
post

Carnegie, Australia

#2 Sep 4, 2012
i have to agree things anit looking to good atm. mining compaies cuting jobs first time in a while that's happened.

“Ruler of Topix Australia .. ”

Since: Feb 12

the Holy City

#3 Sep 4, 2012
wooo hooooo

now lets watch aus whimper and slither away into obscurity

heay !
mutant EUNUCH Fixers

Anonymous Proxy

#4 Sep 4, 2012
voices of reason wrote:
wooo hooooo
now lets watch aus whimper and slither away into obscurity
heay !
Have you rewarded John Singh Barnacle Barnes and Audie Julie chamberpot yet?

wooo hooooo
Foo

Goodna, Australia

#5 Sep 4, 2012
post wrote:
i have to agree things anit looking to good atm. mining compaies cuting jobs first time in a while that's happened.
Can't see it as a major problem.....it will always fluctuate with global commodity prices ,or demand...mainly from China ,but also Japan and to a lesser degree ,India.......the biggest losers will be the bottom line of the big mining companies, and not the average Australian.....mining employs just under 5% of the workforce ,so that can't have too much effect anyway.....I suspect China will do something or other to crank things ,although , their growth is still more than enough to keep the mining industry very busy....
Foo

Goodna, Australia

#6 Sep 4, 2012
voices of reason wrote:
wooo hooooo
now lets watch aus whimper and slither away into obscurity
heay !
......ahhh !....the professional topix dickhead...we are you favourite country in the world , are we not?....pakis..lol
Jill

Sydney, Australia

#7 Sep 4, 2012
Aussie farmers are about to have their best season due to extremely high grain prices caused by drought in America and Russia. And farmers return more to the Aussie economy than multinational mining companies ever will.

“Ruler of Topix Australia .. ”

Since: Feb 12

the Holy City

#10 Sep 4, 2012
mutant EUNUCH Fixers wrote:
<quoted text>
Have you rewarded John Singh Barnacle Barnes and Audie Julie chamberpot yet?
wooo hooooo
barnacles lol

you goose
dumb under

Fairfield, Australia

#11 Sep 4, 2012
the only boom that has never yet had a bust in this country is the boom of stupidity, the export boom of stupidity will ensure we here in oz stay on top, our future is bright, so bright that we will all be needing welding glasses to look into it, so frok the mining boom. its all about the indian boom.
truth

Perth, Australia

#12 Sep 4, 2012
pacovi=demoni gipsy from gipsyland

“Ruler of Topix Australia .. ”

Since: Feb 12

the Holy City

#13 Sep 4, 2012
hehe this makes me happy

the one thing aus had , and its going

Woo Hoo, party party !
Lional

Australia

#15 Sep 4, 2012
voices of reason wrote:
hehe this makes me happy
the one thing aus had , and its going
Woo Hoo, party party !
Then we will see how many people will want to come here now

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