Geologix Explorations
Medusa Mining

Find out more about Subscribing Companies
Unique access to energy
investors. Global distribution
of company news.
Find out more.
Sign up for our free weekly newsletter
Informed comment and independent news delivered
by email every week.
Sign up here.
Find out more about Minesite Forums
Management and investors
are brought together at our
investor forums.
Find out more.
Bulletin Board
Join other informed investors.
Debate mining companies.
Visit Bulletin Boards.
OPUS Executive
An Insider's Guide to the Mining Sector, 2nd edition
Exchange Traded Gold
Bishopsgate Communications
T1ps Spreadbetting
Ian Plimer: Heaven and Earth
HighGrade.net
Commodity Watch Radio
Jobs4mining
Doug Casey Research
UNCTAD
Ocean Equities Ltd
Bullion Desk
allipo.com
Ambrian Capital

News


November 16, 2008

As Governments Attempt To Stimulate Demand By Investing In The Basic Fabric Of Modern Society, Miners Wisely Cut Capacity


By Rob Davies


A gathering of the great and the good from the largest 20 economies on earth this weekend in Washington will doubtless have kept many journalists occupied. But will it have solved anything or produced any remedies for the global recession we are now in that will help the mining and other industries? On past form the likely answer looks to be “no”, especially with a time-served US President in the chair who has no authority to enact any legislation that might be required. What needs to be done is to let markets take their course so that a new equilibrium can be established as soon as possible.

At the moment demand is collapsing, with just about every industry in every country experiencing economic slowdown or contraction to some degree. The plight of the US car industry is well known, and the cash flow problems of GM and Chrysler will almost certainly lead to some sort of financial crisis next year. Whether that will cause a complete cessation of activity is unknown, but it seems unlikely that the US Government will stand back and let Detroit just come to a halt. It might be bad news...

Restricted Area

Please login or register (FREE, quick and easy) to read the full article.