The CCP would love nothing more than to starve Australia of wealth, they have propped us up for far to long, and what industry have we put those hundreds of billions of profits into?
Nothing.... we are still so heavily dependent on commodities... really it's all we have going for us. Take out iron ore, coal, lithium and what does our budget look like?
Well lithium is already gone, the govt will make very little from lithium now, infact it will probably cost them alot as they start to subsidize faltering mines.
Iron ore. Wait for 2026 and Chinese Simandou... Market is already in oversupply and china is going to throw another 120million tonnes into the mix.
Coal well theoretically should be in terminal decline.
Now nothing benefits china more than cheap commodities.
They make the steel, so greater margins on cheap iron ore
They make the batteries, so again more profits when lithium is cheap
It is a worry looking forward. Good for them but bad for us, but well we as a nation have had plenty of time to diversify.
The golden goose is no more, fair to say the commodity cycle will be coming to an end. It's like playing chess with a kid. Completely outmaneuvered and we never saw it coming.
PLS Price at posting:
$2.79 Sentiment: Hold Disclosure: Not Held
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