# Beijing increases defence spending - good for commodities?



## LPA (5 March 2007)

Just thought I would post this article here:

http://www.iht.com/articles/2007/03/04/news/beijing.php

Basically, China is increasing its annual defense budget by 18%.  Now, considering that is a pretty large amount (about 45 billion dollars a year total now) I presume it will effect the amount of materials they have to buy quite significantly.  Also, being spent by the state means that they will buy no matter how much it costs right?

What are everyone else's thoughts on this?

p.s. Should I feel guilty that I see a military build up as a good sign for my stocks


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## wayneL (5 March 2007)

*Re: Beijing increases defense spending - this has to be good for commodities right?*

Having just watched Thirteen Days, it makes me feel uneasy.


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## noirua (5 March 2007)

*Re: Beijing increases defense spending - this has to be good for commodities right?*



			
				LPA said:
			
		

> Just thought I would post this article here:
> 
> http://www.iht.com/articles/2007/03/04/news/beijing.php
> 
> ...




Hi, I can see your thoughts here and this must be good for Australian Coal and Iron Ore stocks in particular. I think Australia should also build one new battleship for each state and the country needs a few more aircraft carriers and lots of support ships. The Newcastle and Gladstone Docks should be trebled in size and the country should go full out in selling commodities for a new arms race.

Don't feel guilty DPA it's everyone for themselves.


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## YOUNG_TRADER (5 March 2007)

*Re: Beijing increases defense spending - this has to be good for commodities right?*



			
				wayneL said:
			
		

> Having just watched Thirteen Days, it makes me feel uneasy.




LOL Wayne I was going to say the same thing, ie 

Beijing increases defense spending - this has to be good for commodities right? *But bad for Western World*

Sighhhh and unlike during Cuban crisis when we had the Kennedy Bros in charge, today we have Team Bush to handle any Global Geo Political Crisis..... Oh Dear Oh Dear  :hide:


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## LPA (5 March 2007)

Don't worry, they will not in a million years go after China.  No chance in hell.  Actually, there is one chance...

If they decide that the USA is going down dominance wise and just destroy the planet rather than let the other kids play with their toys


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## dubiousinfo (5 March 2007)

*Re: Beijing increases defense spending - this has to be good for commodities right?*



			
				YOUNG_TRADER said:
			
		

> LOL Wayne I was going to say the same thing, ie
> 
> Beijing increases defense spending - this has to be good for commodities right? *But bad for Western World*
> 
> Sighhhh and unlike during Cuban crisis when we had the Kennedy Bros in charge, today we have Team Bush to handle any Global Geo Political Crisis..... Oh Dear Oh Dear  :hide:




Thankfully the US elections are getting closer.


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## noirua (5 March 2007)

LPA said:
			
		

> Don't worry, they will not in a million years go after China.  No chance in hell.  Actually, there is one chance...
> 
> If they decide that the USA is going down dominance wise and just destroy the planet rather than let the other kids play with their toys




China have said that they fear an attack by Taiwan and want to put off the Americans coming into a war.


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## YOUNG_TRADER (5 March 2007)

LPA said:
			
		

> Don't worry, they will not in a million years go after China.  No chance in hell.  Actually, there is one chance...
> 
> If they decide that the USA is going down dominance wise and just destroy the planet rather than let the other kids play with their toys




Over 150 years ago the US had a war with Britain (for Independence)

Over 100 years ago the US had a war with itself

60 years ago the US were allied with the Russians against the Germans and the Japanese

40 years ago the US had a cold war with the russians and during the Korean was engaged in combat against the Chinese

20-30 years ago the US were allied with Iran and Iraq

Today the US is allied with god only knows who (I'd say Britain, China, Japan and Russia were in there) but is waging a war on Iraq and drawing a line with Iran

So who know's who they will be allied to and who they will go to war with over the next 50 years let alone "Million"


If history is anything to go by we may be next


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## LPA (5 March 2007)

Ok, I agree a million might be an exaggeration 

But it aint happening any time in the next 15...


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## Mofra (5 March 2007)

LPA said:
			
		

> But it aint happening any time in the next 15...



Given the US have a recruitment problem similar to Australia's, are overcommitted in Iraq, and Afganistan is in _much worse shape_ than Iraq, it would be very strange for the US to take on another large scale overseas military commitment.

However, popularity increases at the start of a new war, it is an election year and the Republicans would probably feel they are under pressure...


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