Soros On China

davede · 16 June 2011

Read an interesting little piece today on one of the greats' views on China.

http://www.bloomberg.com/news/2011-...o-stem-inflation-now-risks-hard-landing-.html

Thoughts?

P.s. couldn't really find a dedicated China thread on here. If there is one - mods feel free to move this.

Gringotts Bank · 16 June 2011

Spells trouble for the whole of Australia.

Unfortunately, since 2005/6, Australia formed its whole identity around being a mining country. When an identity takes a hit, it's disastrous. And this is why a mining tax is/was a good idea. Take some of the wealth off the big miners and re-route it into other industries. You can't be a one-note country when that one note is tied solely to the fortunes of a 2rd World country.

I'd love to see Australia form a new identity around mining/farming/technology (bio, food, green-tech, medical) . Too big a stake has been placed on mining and it's starting to roll over on us.

If Australia Inc. was a company, it would have one ripper product that is about to be out-dated, with no R&D, no new products, and cash being poured into trying to keep the old product alive. FUC.Ked in other words.

davede · 16 June 2011

Hi Gringots,

You make a valid point. Mining is Australia's fastest growing industry however it's largest contributor to GDP is the Finance industry.

In 2009-10, the industry with the largest share of GDP (at basic prices excluding ownership of dwellings) was Finance and Insurance services with a share of 10.6%. Manufacturing was the second largest industry with a share of 9.3%. Prior to 2006-07 Manufacturing was the largest industry. Mining has increased as a share of GDP from 5% throughout the 1990s to 8.4% in 2009-10, it is now the third largest industry.

source: latest ABS National Accounts Data (http://www.abs.gov.au/AusStats/ABS@...ummary&prodno=5204.0&issue=2009-10&num=&view=)

Hopefully if commodity prices correct so will the mining industry.

Gringotts Bank · 16 June 2011

Well I didn't know that, thanks davede. I suppose banks and Inusrance co's are going to form the backbone of most developed nations, so I tend to discount them (also since they can only exist as services to real (creative) industries such as manufacturing). Good to see those figures for manufacturing. I wonder what the breakdown on that would be.

davede · 16 June 2011

Glad you found the info useful. You hit on a good point that financial services tend to service real 'creative' sectors. Some might say that for that reason the finance industry and mining industry are really joined at the hip.

The manufacturing sector data from the ABS is a little dated and hard to wade through but can be found here: http://www.abs.gov.au/AUSSTATS/abs@...m&view=ProductsbyTopic&Action=Expand&Num=3.11

If anyone can provide some more recent (and from a reputable source) figures it would be much appreciated.

Smurf1976 · 16 June 2011

Gringotts Bank said:
I suppose banks and Inusrance co's are going to form the backbone of most developed nations, so I tend to discount them (also since they can only exist as services to real (creative) industries such as manufacturing).

That you have realised this puts you firmly in the top 1% of the population in my opinion.

It's amazing how many people, many of them highly intelligent and well educated, fail to comprehend the difference between shuffling money and actually creating wealth.

Gringotts Bank · 16 June 2011

Why thank you! Now to arrange a salary commensurate...

davede · 16 June 2011

... you're onto us.

It's a zero sum game, somebody wins, somebody loses. Money itself isn't lost or made, it's simply transferred from one perception to another.

- Gordon Gekko

Knobby22 · 17 June 2011

Gringotts Bank said:
Spells trouble for the whole of Australia.

Unfortunately, since 2005/6, Australia formed its whole identity around being a mining country. When an identity takes a hit, it's disastrous. And this is why a mining tax is/was a good idea. Take some of the wealth off the big miners and re-route it into other industries. You can't be a one-note country when that one note is tied solely to the fortunes of a 2rd World country.

I'd love to see Australia form a new identity around mining/farming/technology (bio, food, green-tech, medical) . Too big a stake has been placed on mining and it's starting to roll over on us.

.

So true! I have read some economists say the same thing.
Why can't we run this country properly?

nioka · 17 June 2011

Smurf1976 said:
That you have realised this puts you firmly in the top 1% of the population in my opinion.

It's amazing how many people, many of them highly intelligent and well educated, fail to comprehend the difference between shuffling money and actually creating wealth.

Gringotts Bank said:
Well I didn't know that, thanks davede. I suppose banks and Inusrance co's are going to form the backbone of most developed nations, so I tend to discount them (also since they can only exist as services to real (creative) industries such as manufacturing). Good to see those figures for manufacturing. I wonder what the breakdown on that would be.

My pet theme. Without producing and creating "value" the capitalist system is headed for oblivion.

Soros On China

davede

Gringotts Bank

davede

Gringotts Bank

davede

Smurf1976

Gringotts Bank

davede

Knobby22

Mmmmmm 2nd breakfast

nioka

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