Australia entering 'decades of boom'

[Parley]

Contrary to what many amateur pundits believe, the head of the Treasury believes Australia is heading into a 'decades long boom'.

 

This may give pause to those who are leaving money in the UK planning to bring it over to Aus in the future.

 

http://www.theage.com.au/business/australia-entering-decades-of-boom-20110602-1fiwp.html

[Guest chris955]

These theories by economists are all well and good but are just that really, theories.

I think the first comment after that story says it all. Many people are doing it tough and unless you are directly connected with the mining industry it has little effect on the average family.

There just seems to be far too much emphasis on mining when it is only 8% of GDP at a time when manufacturing is contracting fast, tourism is being hard hit and prices for everything are rising.

I cant see this country going into recession as long as China and India continue to boom and buy our resources.

[Guest RichB]

Who in the right mind would believe anything the Government or the head of treasury says ?..

[Exile]

I think this just proves that no one knows what is really going to happen.

 

Literally yesterday it was doom and gloom and reports that Australian is about to head into recession, like this:

 

http://www.perthnow.com.au/australia-headed-for-recession-this-year-after-biggest-quarterly-slump-in-twenty-years/story-fn6mhb6v-1226068177289

 

Now they've slept on it they have a moment of clarity and realise its actually the opposite.

 

but they glossed over things like this:

http://www.news.com.au/business/blue-chips-in-bargain-bin-as-australian-sharemarket-falls-18pc/story-e6frfm1i-1226068098373

 

and then today Qantas are offering voluntary redundency for all their cabin crew due to economic pressure:

http://www.smh.com.au/business/qantas-offers-redundancies-to-cabin-crew-20110603-1fj9n.html

 

With this amount of backflipping, if the media were a gymnast it would be given 6.0, 6.0, 6.0, 6.0 from all the judges. Except maybe USA who would only give a 5.9 because its still bitter about our dollar being over parity.

[Parley]

Who in the right mind would believe anything the Government or the head of treasury says ?..

 

Yes. I'm sure amateur pundits on PIO are much more knowledgeable than the head of treasury.

 

Be warned. Next 10 years are very unlikely to be like the last 10 years. People assuming exchange rate will revert to previous norms are likely to be dissappointed.

[Exile]

Yes. I'm sure amateur pundits on PIO are much more knowledgeable than the head of treasury.

 

While thats a valid point, would it really be prudent for the head of treasury to actually stand up and say "brace yourselves folks, Australia is about to get a rogering"?

 

The negative impacts of saying something like that could be the very catalyst thats needed.

Of course its in their interests to keep the upwards trend going. But they are called economic cycles for a reason.

[kernow43]

Yes. I'm sure amateur pundits on PIO are much more knowledgeable than the head of treasury.

 

Be warned. Next 10 years are very unlikely to be like the last 10 years. People assuming exchange rate will revert to previous norms are likely to be dissappointed.

 

I think it will take many years to return to the exchange rate that people were used to.

Maybe it will never return.

[fleabo]

It is what it is and it will be what it will be.

 

Personally, I don't think the AUD is going anywhere fast at the moment in either direction, and I wouldn't advise anyone to stick their life on hold in the hope that it happens to fall in the right direction for them.