Hi stix1771I hate the use of the terms booms bubbles etc etc and...

Hi stix1771

I hate the use of the terms booms bubbles etc etc and alike.

The requirement for iron ore and other commodities is what it is a supply and demand story. The story starts to break down when the supply starts to outstrip demand by a good margin.

The global economy has been a sleeping giant for such a long time. It had an attempt to wake back in the 1990's and was stalled by the Asian currency crisis. Oil was only $10 a barrel around 2000. Other commodities were also quite cheap and new mines were not being built.

There are some 3 billion more people all wanting what the west has had and they are not turning back. What we are witnessing here is a once in a lifetime expansion that is not going away any time soon. Eventually it will slow down and there will be a pullback on valuations.

Furthermore, everyone seems to be focusing on China and India part of the BRIC nations, however this is also a Vietnam, Taiwan, Malaysia, and Eastern Europe story as well.

I this case China is trying to secure iron ore supplies and is creating the demand. China has only been going as far as expansion goes for a short time and will continue to grow for some time yet. There are going to be blips along the way but the story is going to remain intact.

2012 is such a short timeline for something that could go on for half a century.

Cheers
BW