BROKEN HILL – Professor Richard Hames told the opening session of the Resources & Energy Symposium in the mining city of Broken Hill in the Australian State of New South Wales that the strength of the American financial system and its currency will continue to erode.
Professor Hames, whose Hames Group consults to major international institutions, companies and to governments, said he believed the remnimbi will take over from the American dollar within the next three to five years.
He told Mineweb that the United State’s position as a number one economic power would erode further as it copes with the decline of its economy, unemployment and related issues and that other countries may also move ahead of the US.
He recalled being asked by Alan Greenspan to talk to a group of leading bankers in New York and one of the points he made to them was that the US banking system was riding for a fall with problems with housing loans and the related cross banking matters, but got a frosty reception with one attendee demanding that Greenspan’s group not pay any of Hames’ travel or speaking costs.
That was before the global financial crisis hit that put the American economy on its ear and saw banking collapses and banking rescues.
Hames said that Australia’s mining industry was on a roll but this was a good time for companies to realise they had to watch the need for those in the community who don’t relate to mining and have or are developing negative reactions – in part driven by the haves and have nots syndrome.