US threatens China with secondary sanctions after Beijing appears to agree to send drones and missiles to help Russia in Ukraine; China threatens its own response to secondary sanctions
For as much as everyone still loves to deride Muldoon, he got parts of it right. What we need now is a mashup of Think Big 2.0 and Green New Deal, only funded by direct public spending and not debt issuance. We need to house, feed, educate and provide the basics for our society, and we need to bring manufacturing capability back onshore. It's a wartime prospect and must be framed as such, including the very real shared sacrifice we will all be asked to make.
There are many reasons why NZ shouldn't send too many exports to China and you've given another one Unfortunately that's where it will end for now, as most of the companies doing the exporting are privately owned, but if China offers you x dollars for a product, but you can only get x- 1 dollars elsewhere, most companies would choose China. And should the government try to direct exports elsewhere, I can already see the headlines ("This communistic labour government"!). So until some sort of adverse event occurs, we'll keep on with the Chinese exports.
Let's hope that all these companies are at the very least keeping alternative exporting channels open.
Mar 15, 2022·edited Mar 15, 2022Liked by Bernard Hickey
China have very little to gain, and a huge amount lose overtly backing/supporting the Russians. I'd also be astounded if the average Russian conscript has a good enough grasp of Chinese to effectively operate that kit, all smells off to me
None the less your point re export market diversification is accurate
Are we forgetting its not just the exports when just about every thing is made in china. More pressing on the domestic side. I would like to know what our government and planners are doing if any thing on the domestic energy side. If we remember as short a time ago as last winter where electricity prices went sky rocketing and all we could do is import more Indoneisian coal to burn at Huntlly. That same coal now cost twice as much as it did last year. Do we have any long term energy planning for any thing global warming aside. We appear to simply buy every thing we need on the global markets at the current market price. Petrol included. I suppose the ozzies can sell us some coal if they cant send it to china. Then we can all buy expensive US made telecommunications equipment and drugs that are made in india but how are we going to pay for it if we cant sell our cows to china
Hi Bernard - don't want to derail this topic but the link to the Todd Niall article regarding lawyers taking action over the RLTP was one published in May 2021. Was there a follow up yesterday? I'm hoping they really stuck it to them in court!!
Bernard I read what Gideon Rachmand said about China having the largest foreign reserves but it has just discovered that it could lose access to its war chest overnight. Is this a SWIFT arrangement where China is unable to move it’s money?
The first casualty of war is the truth.
For as much as everyone still loves to deride Muldoon, he got parts of it right. What we need now is a mashup of Think Big 2.0 and Green New Deal, only funded by direct public spending and not debt issuance. We need to house, feed, educate and provide the basics for our society, and we need to bring manufacturing capability back onshore. It's a wartime prospect and must be framed as such, including the very real shared sacrifice we will all be asked to make.
'... Russia had asked China for equipment and rations to help it in Ukraine.'
"Boris; these rations are all in Chinese, but I think they are two minute noodles".
There are many reasons why NZ shouldn't send too many exports to China and you've given another one Unfortunately that's where it will end for now, as most of the companies doing the exporting are privately owned, but if China offers you x dollars for a product, but you can only get x- 1 dollars elsewhere, most companies would choose China. And should the government try to direct exports elsewhere, I can already see the headlines ("This communistic labour government"!). So until some sort of adverse event occurs, we'll keep on with the Chinese exports.
Let's hope that all these companies are at the very least keeping alternative exporting channels open.
China have very little to gain, and a huge amount lose overtly backing/supporting the Russians. I'd also be astounded if the average Russian conscript has a good enough grasp of Chinese to effectively operate that kit, all smells off to me
None the less your point re export market diversification is accurate
Are we forgetting its not just the exports when just about every thing is made in china. More pressing on the domestic side. I would like to know what our government and planners are doing if any thing on the domestic energy side. If we remember as short a time ago as last winter where electricity prices went sky rocketing and all we could do is import more Indoneisian coal to burn at Huntlly. That same coal now cost twice as much as it did last year. Do we have any long term energy planning for any thing global warming aside. We appear to simply buy every thing we need on the global markets at the current market price. Petrol included. I suppose the ozzies can sell us some coal if they cant send it to china. Then we can all buy expensive US made telecommunications equipment and drugs that are made in india but how are we going to pay for it if we cant sell our cows to china
Hi Bernard - don't want to derail this topic but the link to the Todd Niall article regarding lawyers taking action over the RLTP was one published in May 2021. Was there a follow up yesterday? I'm hoping they really stuck it to them in court!!
Bernard usually has a laugh in his voice. Last two days podcasts have sounded very strained though. Not good.
Add it Hong Kong type Omicron surge hitting China.
Gary Dyall
Bernard I read what Gideon Rachmand said about China having the largest foreign reserves but it has just discovered that it could lose access to its war chest overnight. Is this a SWIFT arrangement where China is unable to move it’s money?