by Chris Becker
I don’t know where to begin when a political leader makes statements like this.
From the West Australian:
Premier Colin Barnett says economic commentators calling the end of the mining boom are “naive and wrong”, and says he believes commodity markets have stabilised ahead of a recovery in the next year.
Speaking at the Africa Down Under mining conference in Perth this morning, Mr Barnett said he believed the commodity price carnage in recent months had done its worst, commodity markets had “hit their bottom”.
Mr Barnett reiterated his long-held argument that the so-called “commodity boom” in WA was a misnomer, and told delegates from Africa and Australia he believed the resources industry would continue to drive the WA economy for decades to come.
He said doomsayers calling the end of mining as a major force in the Australian and African economy were mistaken.
“That is naive and wrong. It is a dominant industry,” he said.
“If China has slowed from 12 per cent growth to 7 per cent growth, that will do me.”
Mr Barnett said he believed commodity prices may still take some time to recover, but the worst was likely over for WA and global miners.
I do hope Mr Barnett consults a historical chart instead of a talking points memo next time he utters rubbish like this. No such thing as a commodity boom? That misnomer from whose revenues you gorged and drove your budget into unsustainable levels, and then when the misnomer poofed into thin air, when “no one saw coming” and you went into record deficit?
Mr Barnett’s record as a commodities forecaster is pathetic to say the least, one that has required a half billion dollar bailout from non-WA taxpayers.
The reality is we’re in a commodities bear market, one that will last for years. This is the nature of things, its not unusual or unpredictable. Even if he can’t understand the dynamics behind the concept of rate of change, China is NOT growing at 7% and is NOT growing via endless steel production.
Yes, the minerals industry will withstand this bust. Yes, it has a future, but it will not be dominant, unless all efforts are made to keep other more worthwhile industries – like renewable energy for instance – off the table and then it will be the biggest sector in a hollowed out State economy.
There will be nothing left to do in WA but go to the beach.
You deserve better leaders than this Sandgropers.