It’s an interesting question and one I’d suggest is highly probable that yes, Australia is headed for an economic boom over the next 40 years to 2050, larger than what we’ve seen ever before.

But Jamie weren’t you even suggesting a year ago the world would go close to a depression and the US is in all sorts of trouble and headed for a W recession?

Correct I was. And I haven’t actually changed my mind.

What’s changed is this:

What happens in the US no longer will affect us like it used to.

They will become less significant economically to us and to the world for that matter.

Why?

The Eastern Economies will take over as the new leaders of economic success led by China and India whilst Western Economies head into decline, particularly the US.

Australia is uniquely placed as one of the few developed Western Economies that will avoid a decline, but actually boom largely thanks to our trading relationship with China.

Australia has often in the past been referred to as a lucky country, but now that phrase will have a much more pertinent meaning as we truly are luckier than ever imagined.

The US decline and crash no longer has to affect us.

Their stock market when it crashes in the future again no longer has to affect our stock market, although it may still cause some investors to get nervous until they can become confident that we are largely divorced from the US economy and market.

I mean even the recession we suffered was not based on fundamentals, but largely from the negative sentiment of the US crisis which became a Global Credit Crisis.

This wasn’t necessary as the fundamentals in Australia were solid and now that we’ve escaped the Global Credit Crisis it’s becoming apparent that we need to cease thinking if the US is in trouble that we are somehow as well.

The Global Credit Crisis really should have been called the Imploding of the US, which I’ve been warning about for many years due to the Federal Reserve Banking System they have controlled by the Private Banks, the same banks that caused the problem or offer solutions which largely benefit the banks and rob the American tax payer.

But that’s a whole other article and no longer our concern.

Australia should prepare for a massive immigration boom as well.

And not just from developing nations, but expect large immigration requests from declining Western Nations, in particular the US and the UK.

Australia has the rare opportunity for a sparsely populated country to become not only the envy of the world, but a significant economic power of the 21st Century as we ride the massive wave of prosperity that China and India will create.

Our only concern is our large Current Account Deficit which can create volatility in our exchange rate, which as you know can go from 98 cents US to 63 cents within a matter of months.

How can you prosper from this economic boom?

There will be ample job opportunities created along with business opportunities with China and Asia continuing to expand. Plus the boom will create a booming domestic economy bringing prosperity to many areas of the economy.

Plus the Stock Market and Property Markets will boom, ensuring investors can also reap the benefits.

Let’s hope this time though our Governments will learn to cap their spending and put large surpluses aside so we can build a sovereign wealth fund to equal the likes of Norway and Dubai, so when we run out of commodities then we have sufficient investments to live off as a country.