What's Joe been smoking? Surging demand for Oz commodites to continue for years says Hockey!; Says we’re in the middle of the biggest boom in the history of humanity?
Tweet Topic Started: 24 Oct 2014, 03:28 PM (1,471 Views)
SURGING demand for Australia’s commodity exports will continue for years, according to a bullish outlook from Joe Hockey, despite a price slump that has undercut his budget forecasts and sparked warnings that the resources boom is finally over.
In a provocative claim at a global economic gathering in Washington, the Treasurer described talk of an end to the boom as “market trash” that ignored powerful factors driving up the demand for iron ore, coal, gas and other resources.
The assurance came as Mr Hockey’s counterparts from other resource nations, including Nigeria and Indonesia, declared the boom already over and talked of diversifying their economies into manufacturing.
The Treasurer’s confidence in the boom is central to the economic forecasts in next month’s budget update but it revives a political debate about whether Australia must invest in new industries to prepare for a slump in gas and mining exports.
“The bottom line is the world’s going to want commodities because of the emerging middle class, particularly in Asia but also in Africa and various other places,” Mr Hockey said during a panel discussion hosted by the International Monetary Fund.
“I don’t think there’s any commodities (downturn) — I think that’s market trash. I think we’ve got to deal with the reality of where the world’s going to be in the next 30 years. They’re going to want commodities.”
Mr Hockey made the comments after Indonesian Finance Minister Muhamad Chatib Basri, an economist and former trade consultant, said his country had to invest more in manufacturing rather than depend on resources for two-thirds of export revenue.
Mr Hockey said the dour forecasts did not take into account the long-term demand from the rise of a prosperous middle class in Asia. “I don’t buy this argument that the commodities boom is over. I’m naturally an optimist. Prices might have come off for iron ore but our volumes are up.”
Mr Hockey said he wanted China to build more infrastructure and noted that Indian leader Narendra Modi wanted to raise $1.1 trillion for new infrastructure over the next four years.
“We’re in the middle of the biggest boom in the history of humanity and, frankly, commodities are going to help to make that happen,” Mr Hockey said.
“Ten years ago Australia had a relatively small gas industry. In five years’ time we’ll be the biggest exporter of gas in the world.”
Tell it like it is Joe. We don't need any of this market trash.
Be good if they would tell it like it is for once ,Instead of utter delsuion.
The biggest mining boom in humanity has boomed joe, and is now declining. Booming at $190 a tonne, dropping 40% this year alone to sit at $80 a tonne now.
What does Joe expect China to do, build another 100 or more ghost cities now dropping in price using our iron ore. Its over Joe, but keep on jawboning.
Increased volumes of iron ore mean nothing when prices have dropped so far.
1,000,000 tonnes at $190 per tonne =$ 190,000,000 1,200,000 tonnes at $80 per tonne. =$ 96,000,000
“Ten years ago Australia had a relatively small gas industry. In five years’ time we’ll be the biggest exporter of gas in the world.”
Anyone who cannot see what this will do to our economy is being really daft. Australia is headed into a period of long term prosperity this fact is beyond question. There are plenty of people who know whats coming and they are here to invest and gain footholds for the future.
The bears on here who missed out through this period, listening to ridiculous doomster lies, will be laughed about by the next generation. Just as we laughed at the 90s doom and gloom brigades.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Anyone who cannot see what this will do to our economy is being really daft. Australia is headed into a period of long term prosperity this fact is beyond question. There are plenty of people who know whats coming and they are here to invest and gain footholds for the future.
The bears on here who missed out through this period, listening to ridiculous doomster lies, will be laughed about by the next generation. Just as we laughed at the 90s doom and gloom brigades.
Perhaps you can list point by point how the problems listed in this article will be overcome.
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