Many people ask me whether Australia is going to boom to 2050. It’s an interesting situation and one I’d suggest is highly probable. Australia is headed for an economic boom over the next 40 years to 2050, certainly larger than anything we’ve seen before. It’s incredible. A year ago I was predicting we were nearing a global depression; the US was in all sorts of trouble and clearly headed for recession. However, we’ve been very lucky here in Australia.

We are becoming more insulated from the situation in the US – it no longer affects us the way it used to. The US is becoming increasingly less significant economically to us and to the world for that matter. I expect that the Eastern Economies will take over as the new leaders of economic success led by China and India while 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, instead actually booming largely due to our trading relationship with China. We have 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. If and when their stock market crashes in the future, it no longer has to affect our stock market. It may still cause some investors to get nervous; however this will disappear as they become more confident that we are largely divorced from the US economy and market.
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. Now that we’ve escaped the Global Credit Crisis it’s becoming apparent that we need to lose the mentality that 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”. This is something I’ve been warning about for many years. The Federal Reserve Banking System they have is controlled by the private banks – the same banks that cause the problem and then offer solutions to benefit themselves and rob the American tax payer. But that’s a whole other article and no longer our concern.
I believe Australia should prepare for a massive immigration boom as well and not just from developing nations. 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. This has been demonstrated as we’ve watched the Australian dollar go from 98 cents US to 63 cents within a matter of months.
However, the important thing is to focus on how we can 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. Also expect the stock market and property markets to 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. That way, when we run out of commodities then we have sufficient investments to live off as a country.
I recently did a radio interview on an article I wrote, stating that Australian property will boom to 2050 as well. Despite many so-called experts claiming that property would crash in Australia by 40% during the credit crisis, I was adamant it wouldn’t and now those that shared my view have been proven right.

This isn’t to say property will all be smooth sailing. As a property investor you would be wanting property to grow in a steady fashion to avoid a new property bubble occurring, which is what the Reserve Bank is afraid of and thus the major reason they are putting up interest rates.
Overall there has never been a better time to create wealth in Australia now than ever and I’m personally expanding staff levels and am focused on growth again. As far as I’m concerned, the recession is over.