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Mining boom not done yet: NAB

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Your Investment Property | 29 Aug 2012, 12:00 AM Agree 0
NAB chief executive Cameron Clyne claims the mining boom is far from over, pointing to significant investments that are “in the pipeline”
  • Bruce James | 30 Aug 2012, 06:38 PM Agree 0
    BHP recently postponed $83billion of investment which is 1/3 of the total national investment in new projects. Five new coal mines have been shelved across NSW and Qld. The costs of development of the coal seam gas (CSG) projects have blown out to an accumulated $20billion while the sale price of the product is well down on that used in the feasibility studies. Against this background, a banker, whose focus is on keeping people in hock, claims the boom is not over and by implication we should borrow even more money. China has an excess of production capacity and holds $US3.7 trillion in debt instruments from the US, debts which the US can never repay. Get over it! We are not going into a period of sustained growth or improved property values. It is over. Debt funded growth has led us to a prospective third round of money printing (can't call it that though.. better to call it quantitative easing or better still just QE. Soon we will be in for QE3 by the way...) I wish we were not heading towards 5 or 10 years of stagnation because I bought a house in Brisbane at the top of the market. But what I will definitely NOT be doing is borrowing more money unless it is to buy physical gold or silver.
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