From The Australian comes word of a new report on planned and current investment in resources projects topping $357 billion:
Access Economics said the total value of definite projects in the September quarter is now $178 billion, an increase of 20 per cent over the previous year.
But it says in a report released today, the value of projects in planning has reached a staggering $357 billion.
That’s about $16,900 for every man, woman and child in Australia, by the way. A fairly generous slice of which is being spent in the NT and WA.
Spokesman Chris Richardson says there is already a mature investment boom in Australia.
“We already have investment as a share of national income higher than we’ve ever seen before,” he told ABC radio.
…
Mr Richardson said the outlook in China and India had been strengthened, commodity prices were still good and there were expectations that many of them would continue to rise.
This is a major cause of the strengthening of the Australian dollar. When Chinese, Indian and Japanese businesses buy minerals from companies like BHP-Billiton and Rio Tinto, they do so in Australian dollars. This drives up the currency’s value. This causes inflation because mining companies bid up the price of labour and construction resources. On the other hand, it also drives down the cost of imports.
Anyway, back to the story at hand. Here’s the punchline:
Finance Minister Nick Minchin told the program it was no time to risk the economy with a change of government.
Did you catch that? If it’s going well, don’t risk it, stick with Minchin’s mob. If it’s not going well, don’t risk it, stick with Minchin’s mob.
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