Welcome to 'Middle Ground View' where we seek to find reason, common sense and clarity in all matters of life. It is our firm belief that no matter how muddled a topic is or how emotionally charged, with a bit of investigation a sensible Middle Ground position can always be found.

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.

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