Gordon
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Australian Politics
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Gordon
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tickleandrose wrote on May 15 th, 2020 at 3:03pm: Johnnie wrote on May 15 th, 2020 at 12:20pm: tickleandrose wrote on May 15 th, 2020 at 11:05am: I dont know, what is happening to everyone of you, you all seemed to be suddenly very ideological and not realistic.
FACT: the world is in trouble, COVID 19 is ravaging across the world. Every country will struggle to recover. And for Australia its worse.
For many years, I had been arguing that the basic motor of our economy is wrong. It encourages profit above everything, making manufacturing going overseas not only to China, but other countries as well. It encourages money funneling into unproductive and UN-inovative second hand real estate with capital gains concessions and negative gearing. To such an extend that I can comfortably borrow 1/2 million to buy an 'investment' apartment, but I cant get even half of it, to start a childcare business. Without a strong manufacturing base, we were luckily able to maintain our status via selling raw resources, lands, tourism, and education. But the chicken had come to roost with COVID 19.
Now, all of those sectors that props up the Australian economy is in jeopardy. And we are in big trouble.
And the last thing we want, is to blindly follow USA into another trade war, or worse a hot war. Right now, we import 2% of what China exports, we export 33% of our products to China. Most of our big brands have factories in China. And if you have any experience in investing. It takes time - years perhaps even decades to try to relocate, and then train up staff in another country. Just look around our world, which other countries can we invest into like we did in China? India? Their legal systems are slow, and their infrastructure is simply not upto scratch - may be in 10 or 20 years time. Vietnam, Cambodia? Dont forget they are communists as well.
So the 'change', or 'diversification' takes time, decades to do. But Australia is facing extreme problems RIGHT now! With USA blunder on COVID, and its America first policy, I dont think we can depend on that for our recovery. UK? They are in a whole world of trouble, and their market is far smaller than China, it is not a replacement. Europe is basically in recession.
And in midst of all this, if we start another trade war - what will happen? You do the math. The trade war has already started, the trouble is we don't have anything to trade. Its the Chinks being the schoolyard bullies, because of them 300,000 people have died and the world has come to a standstill, whats worse than that is i have lost some money. Its not like this is the first time they have spread diseases because of their cultural habits. WE WANT ANSWERS. So... are you Australian or American? Because, whilst there had been a trade war between China and USA, and we are indirectly effected, the direct trade relationship between Australia and China is relatively spared of damage. Most of the surprise surplus of Morrison government came from our export of steel and iron to China. We also export, food like barley, beef, tourism, education. If you walk down China Town in CBD melbourne, basically the whole place is catering to the tourism and education industry. Without both, these businesses would shut and die off. I think China is just like the USA. They were too afraid to shut down and attempts to play down and cover up because of fear of hit to the economy. The difference is that, instead of being in denial, they acted with the entire kitchen sink, whilst the USA just step up the blame game and give up. You're becoming increasingly protective of China and it sounds bad. The American President/Govt will change in a few months or 4 years. China will have the CCP for a little while yet I imagine. Now if you can hold two thoughts in your head at the same time, try this. Trump is blaming China as a deflection but China is also very much to blame and the world WILL be asking for answers. China is not our friend, and they will not cooperate in any way shape or form in an international inquiry on how this happened. Just look at their dummy spit on the mere suggestion of it.
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