G'day Loul,my gut opinion is that yes it will ultimately have a...

G'day Loul,

my gut opinion is that yes it will ultimately have a dampening affect on the economy as a whole. Wether it has a big impact on the mining sector is yet to be seen, i only say this as the mining sector is booming and IMO will be the last sector to really be affected in the event of a downturn or slow in our economy. Might seem like a bit of a funny comment to some but i say it as the mining sector has all the $ at the moment and therefore can afford to pay extra wages moreso than the small business sector. Ultimately i believe wages will increase and the union movement will now move for more control than it has stated it wanted (during the election campaign). IMO also don't be surprised if at some stage Gillard moves to oust Rudd.

I will point out that i am and always have been a Liberal supporter. In saying that Kevin Rudd gives me some optimism that i've never had before towards a Labour government and in particular hope in a Labour Leader.
If he can keep the 'millitant' unions at bay then i may well be surprised and we could see a new change in the Labour Party, there is some evidence of it already but i am still wary of the financial stranglehold the union movement has on Labour. While i am all for democracy and acknowledge the need for Labour and the unions i have hesitation in Gillard and her staunch approach, i believe she is out to get an eye for eye so to speak with work choices and may let ego get the best of her and take it back too far the other way. Only Rudd can stop this and i have full faith in his ability and intellect and i now hope he fulfills the expectations of the nation and keeps the economy healthy and humming along into the next election.

As for the affect on gold sector, IMO this will again be one of the last sectors affected along with Iron Ore. Oil prices will continue to rise and while this is good for the oil company it is not good for the economy. Iron Ore will continue its demand fueled through china and the ever emerging india. Gold will be in shorter supply in the next 5 - 10 years and with the gold price expected to hit $1000oz this sector should continue to rise.


interested to hear your thoughts also Loul (and anyone elses)


cheers Davo