Tuesday, 10 May 2011
China stockpiling iron ore - Australia should take note
What's the one thing that can send Australia broke in a matter of weeks. No it's not a natural disaster. We car recover from that. I am talking about the possibility of China cutting of commodity imports. If that happens Australian economy may not recover. The frightening thing is, right now China is rapidly building stockpiles of iron ore, coal and other commodities. Why? To protect Chinese economy, maybe. To exert pressure upon commodity suppliers like Australia? Is that so impossible to imagine? This year's federal budget is completely reliant of Chinese export duties. What if the exports stop? Very frightening.