Value Collector
Have courage, and be kind.
- Joined
- 13 January 2014
- Posts
- 12,487
- Reactions
- 8,843
If china had to choose between Russian Trade or Trade with west I wonder which they would choose
If china had to choose between Russian Trade or Trade with west I wonder which they would chooseStopping all international products, such as the iPhone entering Russia, will not work when there re other countries like China that can supply anything that the West takes away.
let's tweak that question a little ... trade with the West ( using US dollars or euros ) or trade with Russia ( currently denominated in euros , BUT some chance of a mutual agreement in other terms if needed )If china had to choose between Russian Trade or Trade with west I wonder which they would choose
Russia has the world's largest reserves of gas, second largest reserves of coal and third largest reserves of iron ore.Russia isn't very big on sanctions or tariffs for political reasons , has a nice range of resources for sale ..
if i were the West i would think very carefully before making ultimatums , just saying
Just need to get the renewables in faster, they are cheaper anyway, sounds familiar?The world wide economic implications of open war in Ukraine are going to be grim. Just off the top of my head
1) Squeeze of Russian gas supplies to Europe. Price jumps, Industry and domestic crisis with supply
2) Undermining of Ukraine role as a major world food supplier. It is the bread basket of Europe
3) Racketing of oil/gas prices as Russian oil comes off the market and supplies interrupted through Ukraine. Already causing infation . Can only get worse
4) Disruption to banking services .
5) High risk of cyber warfare that undermines many government, and infrastructure facilities
6) Risk of undermining Ukraine economically with implications for sovereign debt as well as local and international businesses.
I can only see these factors putting downward pressure on sharemakets as investors recognise these situations.
So from an investment POV ...
Russia has the world's largest reserves of gas, second largest reserves of coal and third largest reserves of iron ore.
What does China need that they presently buy from another country who they've promised to bring economic suffering and misery to? Well that would be gas, coal and iron ore.
Russia also has an assortment of other minerals that China needs to import.
Australia take note.
Well I think China has half a billiion poor people still and Russia can vacuum up heaps, plus SE Asia.i hear Mongolia has a bit of coal , as does North Korea , Russia is still friendly with a few nearby states ( so could easily JV to help them get a share of Chinese demand ) AND China is willing to invest to procure resources it needs
China without Western goods might be painful for a while , but maybe not crippling , the BIG question is can China cope without the West vacuuming up Chinese goods
In the short term, and in this context "short term" means a decade, the West is a captive customer with basically zero choice.China without Western goods might be painful for a while , but maybe not crippling , the BIG question is can China cope without the West vacuuming up Chinese goods
Money is nothing, it is an agreement between countries that they will honour their obligations, once that agreement between countries fails, the currency is worth jack $hit.China CAN make quality goods , but the greedy kleptocrats want maximum profit
think post WW2 Japan or Germany , China could easily make top quality products , but who will buy them , billions of people are broke ( because of government debt )
who will buy them , billions of people are broke ( because of government debt )
One doesn't have to travel too far to find that's the case.You go to China and stay in a hotel, what if they say we don't accept $AU.
they were on one stage planning a BRICS common currency but some members have come on tough times ( South Africa and Brazil )Money is nothing, it is an agreement between countries that they will honour their obligations, once that agreement between countries fails, the currency is worth jack $hit.
You go to China and stay in a hotel, what if they say we don't accept $AU.
Government debt, who do they owe it to?
The whole system works on trust and that is what is being tested at the moment IMO.
The West has not been in such a precarious position for a long time.
It is going to be very interesting to see how it all pans out. You may find that China and Russia form a common currency and demand it be the reserve rather than the US.
Who knows
What does China need to sell though,Russia has the world's largest reserves of gas, second largest reserves of coal and third largest reserves of iron ore.
What does China need that they presently buy from another country who they've promised to bring economic suffering and misery to? Well that would be gas, coal and iron ore.
Russia also has an assortment of other minerals that China needs to import.
Australia take note.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?