IvanM

I work in mining supply. Quite incredible what is happening. China is the key and how China reacts to slump in its key export markets. The olympics has had some bizarre impacts on pricing. There have been some blanket bans on mining which has sent the price of coal and iron ore through the roof. They have also put tarrifs on my industry's key ingredient, AN, to reserve domestic supply. This has also artificially boosted world prices.

What amazed me is that despite the record prices some mines are losing money because of record costs. Kalgoorlie's super pit is the main one.

For those of us in the industry life is sweet. I feel sorry for the poor feckers not benefitting from it which is why NSW has shown increased unemployment despite huge coal production.

What will really put things in the mixer is when China has its first slump. The inevitability of the economic cycle is as certain as death and taxes. It is probably the only aspect of economics economists all agree on and every economy has gone through. It is a pity they are as good at predicting the slumps as a seismologist is at predicting an earthquake.

Petals

Interesting article from Newscom but not surprising I personally have been expecting property prices to crash, hope they don't, but if the US is not buying our small population can not take up the slack from China.

http://www.news.com.au/business/mone...97-14327,00.ht

aus2be_OH

Page not found?

bcworld

http://www.news.com.au/business/mone...-14327,00.html