China's new 5 year plan announced

A large portion of our population are communists too...

In fact they're currently in a coalition government - the two-headed monster

 

well this 5 year plan means bad news for oz as we rely on them buying all our materials, so in other words the resources demand might fall

 

That's overly generous of time devoted to plans I think.

 

Well if can we get back on track, this plan of China is certainly looking much different than previous ones. It suggests that they will begin takin care of their middle class, they will let current control mechanisms loosen up a lil to establish a certain size consumer class...

This might mean, China will export less, import more, produce at home more quality items etc...If you consider Aus/China relations, does China buy anything from Oz other than all sort of mined materials...

 

Well this seems like good news for silver in the long term, if China's middle increases in size this increase the price of silver a lot

 

Aint that the sad truth.

Not to mention a policy on National Sovereignty that during the 40s would have most Australian political heads dragged out physically into the street and shot in the back of the head for being traitors.

I think we're reaching a stage in the Australian political climate where the people are become all too aware of the scam they're leading. The advent of modern social technology means suppression of voice and opinion is becoming a lot more difficult.

Those with half a brain are able to get the masses starting to think on things mainstream media want suppressed, which leads to political climates like the one we have now. Unstable and fickle.

The people are becoming aware that the politcal powers don't have their best interests at heart and are willing to punish them at the ballot box for being ignored.

So this makes a very interesting situation of the China question. Historically speaking, we're tied closely to the US and even today, we still are with our military endeavours. When Kevvy came in and started shmoozing with China, that caused quite a ruckus (which lead to his political assassination and the reinstallment of another US puppet in the bogan ranga).

So my view is that impact of Chinese domestic policy can at best be taken with a grain of salt. We are so unstable in this country as it is, it will be difficult to predict how our own interaction with china will pan out, regardless of what path they choose to take.

I will say though that the foundations for international tensions are growing. This plan in China for internal prosperity as a priority are not only going to fuel insular political climates and nationalistic pride, but also fuel inflation globally and destabilise economic power out of the US. To fund a lot of these proposals in China, they'll look to dump a lot of the western debt they currently hold which will be good for them, bad for the rest of us.

Unless our national political agenda in this regard changes (and it might now that we have a US sided government), this could mean a lot of chinese held US debt will be dumped here (as it has in spades over the last decade with the chinese buying up swathes of Australian assets).

But if the US dollar shits itself as it currently does, or china continues to march up it's interest rates whilst the US is stuck in neutral, we could be left holding worthless US dollars for our assets making us paper rich, commodity poor.

But as someone who avoids debt and fiat in general, I personally give less than a crap about what happens internationally in this regard. I am already blatantly aware our asset base is shifting offshore and the cretins in Canberra give less than two shits about it. Our private debt balance eclipses the US and we are effectively owned by international interests.

Never before has the ideology that if the international markets cough, we get a cold have been more relevent and apparent than they are now.

All you can do is sit back, crack open a brew and watch the whole sorry mess unfold.

 

+1 for the above Auspm. Informative and so true of the whole situation.

I stood for a moment last night at the Commonwealth on Adelaide St and watched the market close report on Bloomberg. Every major denomination whether GBP/USD/EUR, Gas, Crude, you name it, everything had a little red triangle on it..... EXCEPT SILVER

Couldn't help but walk away with a huge smile on my face, safe in the knowledge I had another 5 oz bars in my bag