"So we model a slow growth developed world. So we model a kind of if you look at, let's say pre crisis, the previous 25, 30 years. The US grew, let say three and a half, four per cent. We think the growth in the future is going to be below that. It's just a function of how the deficit gets unwound and what has to happen.
Europe clearly is going to be below where it was and Japan is Japan, right. Japan's been a 20 year slow growth mode, so we think developed world's slow. We're still a big believer in the emerging market, middle class consumer trade. In other words, there's going to be one or two or three billion more consumers in the middle class in the coming decades. 80 per cent of them are in Asia, but they are also in Latin America, Africa, places like that.
As that takes place it will have an upward bias on resource pricing. So if you say, I believe in emerging market middle class consumer therefore I believe that there's going to be upward pressure on iron ore, coal, gas prices, therefore I believe in Australia. In other words, I kind of go through this one, two, three of macro themes that are going to happen. That's how I kind of look and say".
Europe clearly is going to be below where it was and Japan is Japan, right. Japan's been a 20 year slow growth mode, so we think developed world's slow. We're still a big believer in the emerging market, middle class consumer trade. In other words, there's going to be one or two or three billion more consumers in the middle class in the coming decades. 80 per cent of them are in Asia, but they are also in Latin America, Africa, places like that.
As that takes place it will have an upward bias on resource pricing. So if you say, I believe in emerging market middle class consumer therefore I believe that there's going to be upward pressure on iron ore, coal, gas prices, therefore I believe in Australia. In other words, I kind of go through this one, two, three of macro themes that are going to happen. That's how I kind of look and say".
