by fulltimestudent 2 Replies latest social current
American influence fades away - last year (ending July2013) the USA only bought 3.9% of Australia's export.
But China bought 32.9% of Australian exports. Imagine what happens to Australia's economy if China stopped buying Australian?
Read it all in this report:
http://au.smallbusiness.yahoo.com/news/a/-/18811586/why-china-matters-so-much/
Australia has great mineral wealth, at a low cost of extraction. The land mass is vast and population small. It will remain financially wealthy regardless of who buys.
Wise men said 50 years back we should be using the $$ coming from the first mining boom to create production industries and then sell the product.
But no Liberal governments have; no understanding of the relevance of finished or partly finished product and; only contempt for blue collar Australians the ants who make everything work. The Labor movement decimated in yesterdays elections was taken over by social engineers years ago and has long lost touch with the hard realities of work means sweat = and pay must be earned value born by ethics. So no manufacturing realities there either. Labor politicians of past generations came up from some dirty workshop floor. It would be safe to say none of todays lot could even start an angle grinder.
Secondary industries have been closing down in Oz steadily where we once had some very useful production going on.
So it is 'rip it out of the ground and flog it off'. If China has one of its periodic melt downs then the arse falls out of our economy and there will be massive unemployment.
It always made more sense to sell the steel, the angle iron, girders, sheet products than the iron ore. But no. As an example. The situation has got so bad that China is buying up all the copper piping that is made here as it is top quality in metal and production and copper piping available here are comes from China and the quality is inconsistant as with some other engineering products. As a further aside all govt contracts have one underlying feature. Do it as cheaply as possible. You dont have be Einstein to see what is happening with Australias public infra structure.
stay tuned.
