Friday, 30 November 2012

CONFIRMATION OF FORECASTS


For my readers who may have been sceptical of what I forecast, please look at the articles in Business Spectator (www.businessspectator.com.au) and reprinted in the Australian today (15th November 2012). These articles are written by two of Australia’s most prescient and respected commentators, Alan Kohler and Robert Gottliebsen.
Kohler writes about the “Small to Medium Business Crisis” and suggests “alarms should be setting off in Canberra (the Australian capital), and through every bank and big company boardroom in the country”. “Non-mining businesses are in serious trouble just as the resources boom ends. There will be nothing to take its place”. How right he is. I founded my last company, MillhouseIAG, in 1991 in a serious Australian recession and today feels just like that outside of the resources sector.
Robert Gottliebsen suggests that energy developments in the United States will be used to “transform manufacturing and later transport”. Agreed. 100%. The US will lead the world out of its present funk based on cheap energy, an innovation and venture capital culture, and the consequent ability to produce quality manufactures. All assisted by competitive currency devaluations so that manufacturing exports can thrive.
Australia: A hollowed out economy and problems ahead in resources. Domestic deflation has to happen. Brisbane office rents and housing costs should not be higher than Downtown Manhattan.

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