An Amazing time to Grow!
G’day all
Happy Friday everyone! With some beautiful May days here in Melbourne over the past week or so, there has never been a better time to be alive!
And I mean it…
We have certainly had our share of challenges this year already, not trying to play that down, but as I mentioned last week, diamonds are not born out of comfort…they are created from pressure!
This is giving us the opportunity to grow, to develop. I have seen so much more patience from the impatient, courtesy from the in-courteous, consideration from the inconsiderate that ever before…
We are supporting each other, helping each other, have more time for each other, yet isolated and distancing. Amazing how life sometimes needs to give us a shove for us to learn…
Even now, more challenges are coming, and China is mad at us…
And i get why, no one likes having people go through their closet…
They are slapping tariffs on our barley exports and wanting a ban on beef exports. And that’s just getting started.
This could simply be because of the call to an inquiry into the COVID pandemic, or something deeper, our push back against Huawei and the 5G roll out…
But in reality, it is simply because Australia had to take sides and we have sided with China’s bully…
The relationship between the US and China inevitably reached a place where it was destined – rivalry. The Chinese and American political models are simply incompatible with each other. As China’s economic and political power grew, it was inevitable that they would start butting heads with America eventually. And, the Trump administration is certainly not backing down now from the plate…
And now that we have all stopped pretending that we’re not involved and have our head in the sand, it’s time for us to pick sides.
For many years, Australia has tried to have its cake and eat it too. We have wanted access to China’s markets, while turning a blind eye to the CCP’s authoritarian nature.
But we cannot continue to do that, it’s time to pick a side.
And maybe our pride stings at that – that we can’t stand on our own two feet and choose our own friends. We are a tiny nation with a tiny military, we don’t get that luxury. We live on the graces of one empire or another.
In the past it was England and so it looks like now we’re siding with the American empire.
I’m cool with that. And not because I think the US is any more noble or righteous than China – far from it – but our values simply align with American political values – as flawed as their democracy and capitalism is – more than they do with China’s.
But of course, after having made our intentions clear, now China is testing our resolve.
But that’s cool too. Again, I think it is a relationship we needed to test… We have been far too reliant in this country on China and need a reason to stand on our own two feet again (even if leaning on Big Brother America)
We are a commodity exporter and trade is fluid. Even if China starts buying barley from someone else, we will simply sell ours to whomever that someone else was selling to…
Global demand doesn’t change, all you get is ‘trade substitution’.
And in that sense, even though we have let our economy become crazily dependent on China in recent years, China needs us more than we need them.
So, I’m cool. We have picked sides, and I think we made the appropriate choice.
More retaliation is coming, but we’ll be fine, and we will learn and grow. I’m confident in this. Let’s enjoy this time and sunshine while we have it 🙂
And in the meantime, let’s buy Australian!
You got this!
Happy Investing all and have a great weekend!!
