As for "who will buy their (China's India's) goods if Europe and US are in tatter?
There are 2.5Billion Chinese and Indians ready to replace the 650million Americans and Europeans over the next few years!
And Europe will pull through this recession quicker with Germany already growing strongly over the last 6 months! Their unemployment rate has fallen from 9.1% in January 2010 to 7.6% last month and falling fast. How? Because the CHinese are buying BMW, Benzes AUDIs, Seimens products, large scale capital equipment, Pharmaceuticals!!! And the same goes for France! Those two countries alone represent 65% of the European economy! They will drag up the rest over the next 12 to 18 months!
The US will continue to grow, but at approx 2%! Bernanke will continue to print money and pay off State Govt debts so they can start to purchase goods again. We should also see a second stimulus package which will have a great affect on their economic growth, since they are starting with +2% GDP growth instead of -2% like they did in 2008!
When Asian economic growth is hovering between 8-10%, and 72% of Australian exports are shipped to Asia! We are set for a sustained period of high mineral prices!
:)
SDL Price at posting:
15.0¢ Sentiment: LT Buy Disclosure: Held
