understandably everyone has automatically focused on the 'selling our dirt overseas' statement in the OP but what I found odd was the comment about our policy makers.
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Nor is it the fruits of magisterial management by the RBA or government
Let's cut the bullshit. Both government policy and the RBA cash rate are things which definitely DO matter in the grand scheme of things.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
Let's cut the bullshit. Both government policy and the RBA cash rate are things which definitely DO matter in the grand scheme of things.
I think all DLS is saying there is that there isn't something magical about the RBA or its decision-making that sets it apart from any other central bank.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
I already gave you plenty - I'll give you one again that easily compares - Cochlear - worlds leading inventor and producor of "bionic" hearing impants.
Now, you give me a Swedish mining company that compares ot BHP ior Rio Tinto? Just one will do?
PS: By the way, speaking of your dubious Skype call, did you know Google Maps started as a Sydney/Australian software start-up and was bought by Google?
PPS: On and on Holden - why would I trust you on that? Sounds like you actually like Volvo's!!
I dont like Volvo's they are boring in my opinion. But they sell all over the world and is a rather large export. You don't see many Holdens driving on the Autobahn. They have their own, Opel its kinda crappy but still better than Holdenn
THe whole point of this discussion was to show how Australia only has mining. Nothing else. Why do you need a Swedish miner? Oh well, here is one.
LKAB - Iron ore mining. Turnover of $7Billion. Small-ish but still on the map.
Skype was a Swedish company that operated in Sweden for a long time before it went global. As was Spotify. Yes it sold eventually as most large companies do. NOKIA was just bought by Microsoft but the Finish can still claim it as theirs. For now.
THe whole point of this discussion was to show how Australia only has mining. Nothing else
No - the whole point of the discussion was to show that this is a bullshit claim. You have helped prove that enourmously, as all your questions have been able to be answered, easily. You asked for even ONE example of an Aussie non-mining exporter on par with your mediocre list, and you have been given several. I notice you have gone quiet on that point, while still sticking to your original claim?
Anyway, there is FAR more to the Australian economy than just mining. 44% of exports in 2012 were of things other than mining, and 80%+ of the local economy was made of activities (production of goods and services) that were not mining related.
But even so, mining is good as we make a shitload of extra export derived cash out of it as well and it supports some locally owned/based companies that are the largest and most successful of their kind in the world - ie nothing to be ashamed of. Sure beats Nokia - a failed mobile phone company that completely missed the smart-phone revolution, and Volvo - a declining manufacturer of very boring cars that happens to have a large market of very boring people who like them.
For Aussie property bears, "denial", is not just a long river in North Africa.....
The roots of Xstrata date back to 1926 when Swiss infrastructure company Südelektra AG was established. Beginning in 1990, the company (which was renamed Xstrata AG) built a portfolio of businesses operating in the natural resources sector. On 25 March 2002, Xstrata plc was created through an initial public offering on the London and Swiss stock exchanges and at the same time it acquired Glencore’s coal assets. The successful acquisition and integration of MIM in 2003 and of Falconbridge in 2006 were key elements in the transformation of Xstrata.
The Spanish government owned the mines till 1873, a British-European syndicate led by Scottish entrepreneur Hugh Matheson bought the mines for £3,640,800
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The history of Billiton
Billiton’s roots trace back to 1860 and a tin mine on a little known island in Indonesia, Billiton (Belitung) island. Billiton became a global leader in the metals and mining sector and a major producer of aluminium and alumina, chrome and manganese ores and alloys, steaming coal, nickel and titanium minerals. Billiton also developed a substantial and growing copper portfolio. Find out more about Billiton’s history prior to the merger with BHP in our Billiton chronology.
The history of BHP
Broken Hill Proprietary’s rich history began in a silver, lead and zinc mine in Broken Hill, Australia. Incorporated in 1885, BHP engaged in the discovery, development, production and marketing of iron ore, copper, oil and gas, diamonds, silver, lead, zinc and a range of other natural resources. BHP was also a market leader in value-added flat steel products. To find out more about the history of BHP prior to the merger with Billiton, read the BHP chronology.
BHP Billiton is mostly Australian and it is a big player. Fortescue Metals Group is purely Australian (as far as I can find), is just a decade old and rode the back of our relationship with china for iron ore. Rio Tinto and Xstrata came from across the sea and are renting land (ish, once they're done with it, they will leave it to us to deal with)
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry
"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
Well yes it might be but I can't say that I'm completely on board here. If we run a CAD our dollar will buy less.
Not true. That is determined by our terms of trade and currency. CAD is simply the trade position + invisibles (interest etc).
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I'm happy that it will settle at a price that compensates for our production level, but we do have to maintain production, and the goods and services that we produce must be wanted to our trading partners.
That is consistent with what I said. we need to export something, but for every unit of export, we should maximise the imports. What is generally missed however, is Government policy can not do anything to narrow the CAD. With a floating currency, the CAD is determined by external forces.
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I agree that a large trade surplus doesn't help unless we want to invest in the bond issued by our trading partners, but a large trade deficit has dangers IMHO.
Like I said - our trade position is determined by factors outside the economy.
80%+ of the local economy was made of activities (production of goods and services) that were not mining related.
But even so, mining is good as we make a shitload of extra export derived cash out of it as well and it supports some locally owned/based companies that are the largest and most successful of their kind in the world - ie nothing to be ashamed of. Sure beats Nokia - a failed mobile phone company that completely missed the smart-phone revolution, and Volvo - a declining manufacturer of very boring cars that happens to have a large market of very boring people who like them.
Mostly services, we buy most of our goods (except staple foods, maybe) from overseas, great while the dollar is high. There are some small manufacturers, that produce niche products, but anything mass produced is (mostly) not produced in Australia.
We have some great programmers, scientists, teachers and doctors, what we also have is a great many construction workers and their related service providers who need to have a job all the time.
"If man is to survive, he will have learned to take a delight in the essential differences between men and between cultures. He will learn that differences in ideas and attitudes are a delight, part of life's exciting variety, not something to fear." - Gene Roddenberry
"Balloon animals are a great way to teach children that the things they love dearly, may spontaneously explode" -- Lee Camp
It should be in the national interest to import as much / many goods and services per unit of export. In other words, a trade deficit is an economic benefit.
So does that mean a trading surplus is undesirable? Bad news for ...
Saudi, Germany, Russia, China, UAE ...
and good news for ...
USA, UK, India, France, Turkey ... ?
A trade surplus means that citizens of that country (say China) are working for the benefit of other countries. In return they get a bank statement denominated in fiat currency from a governemnt where they have no representation (USA).
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