A week ago I talked about how I’m going to visit Perth more often now. Perth, and Western Australia’s economy will continue to stay strong over the next 10 - 15 years as a world commodity bull market continues to build.

Right now Western Australia provides 30% of Australia’s exports even though it only includes 10% of the population.

A commodity boom started in the late late 90’s as reserves and active mines started to reach all time lows. In the mean time demand was starting explode as China and India’s economies kicked into full gear. (I’ll be profiting in my own way with perth web design and some other projects I’m about to launch)

Some speculate that China’s boom cannot last. They say the American economy is weak and about to enter a severe recession. This means China will lose out on one of its major buyers.

But even if China’s demand for commodities falls this will not prevent the commodity bull market from continuing because supply is falling faster - as it did in the 70’s when an extended commodity bull market continued through an extended economic recession.

On the supply side raw material mines have been used up over the last decades yet new reserves or mines have not been started.

It takes at least 10 - 20 years for new mines to be found and brought online. The supply problem will not be fixed for a long time and supply in the next 5 - 10 years will continue to decline.

Oil markets are in an even worse state.

There has not been any major oil field discoveries since the sixties. Right now we’re using about 88 million barrels per day. By 2020 the demand is projected to grow to 181 million barrels per while supply will drop to 55 million barrels per day.