no more good future for resources , page-5

i never quite believed in the resources boom as 'stronger for longer'.
yes, the terms of trade that for thousands of years had been moving
away from primary production has in the last few decades turned back
(yay of australia).

but to say this boom will continue for australia for decades shows
an insular focus- we have lots of fine deposits, but so does the third
world. all we have is a first mover advantage, we had a worldclass
mining industry already underway. over the next decades china will
continue what it has started in earnest over the last decade, of
reaching out to the third world to supply it with resources
at cheap prices. the link below is a prime example (definitely not
isolated).

http://www.silverbearcafe.com/private/10.08/currency.html

australia will continue to do well from resources, just not with as
high prices as we have seen in the last 5 years. the third world by
its nature is less stable, so australia will still see the odd price
spike when there are supply constraints in the third world.

australia (and canada, perhaps also russia) still have the highest
inground (and economically-extractible) wealth per capita in the world.
we don't have the gov't debt that usa has. we will continue to be a
very lucky country.