the countdown for China bubble burst and probable India slowdown already in progress. The clock is ticking...
China will still sit on a big pile of increasingly worthless USD that they will be looking to convert into items of more enduring value but on a different and probably smaller scale.
Australia sailed through the GFC despite the rudd bed-wetting-panic-move of shovelling tax-payer cash out of the window for everyone to buy a new Chinese made LCD TV, because the Chinese military decided to convert a portion of their depreciating pile of USD into a stockpile of mineral commodities that they could use in the future regardless of whether China was at war or peace.
However when the Chinese bubble bursts, it is almost certain that the chinese military stockpiling of Australian supplied minerals will cease or be dramatically cut back.
Similarly, the current Chinese business practice of building new cities and massive building that are completely unnocupied and unsold will also cease.
A significant portion of the demand for Australian minerals at prices that we would like to charge will also cease.
It is likely that the Chinese military will press their strategic advantage by demanding that purchases of Australian minerals will only be made from Chinese owned, operated and Chinese staffed mines.
It is also likely that the Chinese military will demand to be allowed to make significant pruchases of company stock in companies they do not own or control and significant control and staffing of those companies.
The current collection of stooges and incompetents we have as a Government will not be capable of negotiation with the seasoned Chinese strategists and will inevitably give the Chinese whatever they want.
While a few dumbed-down youngsters, deluded greenies and brain-washed, guillible fools may feel good to have an incompetent and total out of depth stooge as PM, and a collection of lifelong unionists as government ministers, unfortunately the world can become a dangerous and unpredictable place in a blink of the eye.
This government will be worse that useless when the inevitable China bubble bursts. Their incompetence will make our government a danger to all Australians.
Our best hope is for a quick government collapse and a fresh election that will without doubt, return a liberal governmemt and some sanity and competence to Australia.
The signs are looking better and better that this current incompetent govt will not last much longer.
