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"Game Over For Aussie Coal" As China Levies Tariffs After 10-Year Hiatus

Tyler Durden's picture




 

Just months after unofficially entering the currency wars, China has torn another page from the 'causes of the great depression' playbook. As Reuters reports, for the first time in almost a decade, China - the world's top coal importer - will levy import tariffs on the commodity crushing Australian (the biggest shipper of coal to China) dreams of a commodity-based renaissance. "China is clearly moving to protect its local miners," explained one analyst, which is key since so much of the credit market is predicated on these mal-invested entities - as the China National Coal Association, urged Beijing to act swiftly to support the besieged sector, where 70% of the miners were making losses and more than half owed wages. Crucially, Indonesia - the second-biggest shipper of the fuel to China - will be exempt from the tariffs, which one trader exclaimed, means "It is game over for Australian coal."


As Reuters reports,

China, the world's top coal importer, will levy import tariffs on the commodity after nearly a decade, in its latest bid to prop up ailing domestic miners who have been buffeted by rising costs and tumbling prices.

 

The sudden move by China to levy import tariffs of between 3 percent and 6 percent from October 15 is set to hit miners in Australia and Russia - among the top coal exporters into the country.

 

Traders said Indonesia, the second-biggest shipper of the fuel to China, will be exempt from the tariffs since a free trade agreement between China and the Association of Southeast Asian Nations (ASEAN) means Beijing has promised the signatory nations zero import tariffs for some resources.

 

A 3 percent import tariff imposed on lignite last year did not include Indonesia.

 

"China is clearly moving to protect its local miners. Given that the tariff also covers coking coal, Australia, being the top supplier to China, is likely going to be the most affected," said Serene Lim, an analyst at Standard Chartered.

 

The Ministry of Finance said in a statement on Thursday that import tariffs for anthracite coal and coking coal will return to 3 percent, while non-coking coal will have an import tax of 6 percent. Briquettes, a fuel manufactured from coal, and other coal-based fuels will see their import tariffs return to 5 percent.

 

Import taxes for all coals, with the exception of coking coal, was at 6 percent prior to 2005 before they were scrapped in 2007. Coking coal import taxes were set at 3 percent before being abolished in 2005.

 

...

 

"With the latest tax, Chinese can only offer around $62, which means Australian sellers will need to cut prices by about $3.50-$4 a tonne," said a senior trader at major international trading house.

 

"It is game over for Australian coal."

So Protectionism it is...

The latest effort to limit imports comes after nearly a year of intense lobbying by China's top miners for Beijing to stem the flood of cheap supplies that have inundated the domestic market and dragged local prices to a six-year low.

 

 

The China National Coal Association, which had submitted proposals to reduce domestic output, reduce the tax burden and regulate imports, had urged Beijing to act swiftly to support the besieged sector, where 70 percent of the miners were making losses and more than half were owing wages.

 

On a broader level, the persistent slump in coal prices has put a severe financial strain on coal-dependent provinces such as Inner Mongolia, Shanxi and Shaanxi, which are already struggling with high debts and a weakening property market.

 

...

 

Separately, trade sources said Beijing has also asked its state-owned power utilities to cut coal imports by as much as 40 million tonnes from September to December, a move that is set to hit imports in the fourth quarter.

*  *  *

The news brought an angry reaction from the federal opposition and the Australian mining sector. The Minerals Council of Australia has urged the Australian government to initiate urgent discussions with Chinese counterparts to seek the reversal of the decision.

*  *  *
That won't help global trade volumes and growth...

 

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Sat, 10/11/2014 - 16:49 | 5318797 VWAndy
VWAndy's picture

BTFD?

Sat, 10/11/2014 - 16:57 | 5318811 Newsboy
Newsboy's picture

Global Financial WW-3 starts Monday.

"War Games" in Washington after IMF meeting include Fed Chairman, Treasury Secretary, BoE Governor and Chancellor of the Exchequer, all physically present calling shots.

http://www.theguardian.com/business/2014/oct/11/lehman-crash-play-financ...

Sat, 10/11/2014 - 17:06 | 5318827 reload
reload's picture

Not read your link, however there is plenty going on. Not least the TTIP (transatlantic trade and investment partnership) which looks like an official take over of government by private corporations. I could have missed it, but where is the ZH coverage?

Sat, 10/11/2014 - 17:22 | 5318863 123dobryden
123dobryden's picture

actualy  where is any coverage?

Sat, 10/11/2014 - 17:51 | 5318937 reload
reload's picture

It is indeed scarce, but here is a link I found from a site I do not follow.

 

http://www.waronwant.org/campaigns/trade-justice/more/inform/18078-what-...

Sat, 10/11/2014 - 22:23 | 5319586 7.62x54r
7.62x54r's picture

I'd bet dollars to donuts that the tarrif would magically disappear if Australia joined the BRICS.

When the alliance you are apart of starts getting froggy with your trade partners, and you toe the party line, these things happen.

Sat, 10/11/2014 - 22:43 | 5319635 king leon
king leon's picture

One of Obama's "BITCHES" being hit by a BRIC for applying sanctions to Russia 

Sun, 10/12/2014 - 06:38 | 5320003 Sirius Wonderblast
Sirius Wonderblast's picture

Except that the article notes Russia would be hit too.

Sun, 10/12/2014 - 00:49 | 5319838 Dame Ednas Possum
Dame Ednas Possum's picture

Australian coal exports to China alone accounts for 16% of the national income.

Australia needs to wake the fuck up and buy in to the reality that it is part of Asia, not the UK, not Europe and sure as hell not the US.

Abandon the Nazionist puppet-masters.

Sun, 10/12/2014 - 01:40 | 5319880 Omen IV
Omen IV's picture

The five eyes are on there way to a one eyed cyclops

Tue, 10/14/2014 - 08:21 | 5328017 Jafo
Jafo's picture

 

 

While that is a good point I suspect that it has something to to with the commodity backed leveraged loans that depend upon the profits of the domestic coal miners.  Too many state owned government enterprises will be insolvent if the price of coal is not kept up at pre-crisis prices and that cannot be allowed to happen.

Sat, 10/11/2014 - 19:43 | 5319187 lincolnsteffens
lincolnsteffens's picture

ZH has previously had articles on Trans-Pacific Trade Treaty. Treaties do not trump constitutional rights. However the US Corporate Governance will be affected by this as will the ability of Sovereign Americans to avoid its effect.

If the treaty is passed it will be a windfall for the largest corporations by limiting our National consumer protection laws. Move your corporation to a signatory country with lax laws now gives that corp. the right to import the crap into the country it was prohibited from producing it in. If our Nation won't let it in then the offending Corp. can sue for compensation on a trade barrier.

Cute plan, huh? What a great solution to bypass food additives, maybe even lead based paint in children's toys. Who knows what the Evil Dooers will think up 

Sat, 10/11/2014 - 21:41 | 5319479 PT
PT's picture

Yeah, no way could overpriced Chinese workers compete against cheap Australian labour and transport costs unless they introduce tariffs.  Yeah, ummmm, errr, hang on ...

Good!  Now with all that excess supply, Australia is assured to have a bountiful supply of cheap energy  for the future ... NO???  What do you mean, NO????

 

 

 

This isn't a sneaky way to subsidize expensive iron ore by any chance, is it?  Errr, hang on, lemme have another look at them iron ore graphs ...

... Gee, I'm really not feeling very smart today ...

Sun, 10/12/2014 - 17:44 | 5321769 Mediocritas
Mediocritas's picture

But, but....free trade! Don't overthink it friend, let's just sign that TPP and it'll all be good. No I haven't read it yet, the Pfizer boys would only give me a little peek, but Rupert said it'll be OK. Besides, that's what Jesus would do.

Regards,

Tony

Sun, 10/12/2014 - 09:50 | 5320295 AttilaTheHun
AttilaTheHun's picture

NOTES:
[1] Independent: British sovereignty 'at risk' from EU-US trade deal: UK in danger of surrendering judicial independence to multinational corporations:
http://www.independent.co.uk/news/uk/politics/british-sovereignty-at-risk-from-euus-trade-deal-uk-in-danger-of-surrendering-judicial-independence-to-multinational-corporations-warn-activists-9057318.html
[2] Touchstone: Special courts for foreign investors have no place in trade deals:
http://touchstoneblog.org.uk/2013/11/special-courts-for-foreign-investors-have-no-place-in-trade-deals/
[3] Short briefing on CETA, by Nick Dearden, Director of World Development Movement:
http://wdm.org.uk/trade/short-briefing-ceta
[4] Stop TTIP: Supporting organisations:
http://stop-ttip.org/supporting-organisations/

Sun, 10/12/2014 - 12:31 | 5320874 SoDamnMad
SoDamnMad's picture

Russian propaganda Channel 1  shows all kinds of European protests (this Sunday night) to the TTIP.

Sat, 10/11/2014 - 19:52 | 5319212 gwar5
gwar5's picture

I think that where they're war gaming the SIFIs collapsability. And I thought they were all uncollapsable as long as all of us were still alive. 

Sat, 10/11/2014 - 18:30 | 5319020 NoPension
NoPension's picture

Now if that's not the black calling the kettle pot.

Sat, 10/11/2014 - 16:55 | 5318800 goldhedge
goldhedge's picture

Thats what you get for hosting the US Marines.

Maybe Australia can sell the coal to Uncle Sam?

Sat, 10/11/2014 - 18:37 | 5319026 adeptish
adeptish's picture

Good point, I remember when we would call the Yanks seppos openly, now not so much.

Abbott is turning us into Uncle Sugar's bitch...

Sat, 10/11/2014 - 18:44 | 5319043 mrpxsytin
mrpxsytin's picture

But according to half the population (those that vote Labor and Greens) this coal tariff must be a good thing. It's basically a carbon tax. And those socialist morons love carbon taxes. Now they have what they want right? 

Sat, 10/11/2014 - 19:49 | 5319202 lincolnsteffens
lincolnsteffens's picture

Doesn't cut down on the amount of carbon, only where it comes from.

Sat, 10/11/2014 - 20:06 | 5319241 mrpxsytin
mrpxsytin's picture

Neither does a carbon tax. So this is exactly the same as a carbon tax. Only problem for the socialists is that someone else is taking their money. But it's about stopping non-existant global warming, not money, right????

Sun, 10/12/2014 - 17:24 | 5321718 butchtrucks
butchtrucks's picture

Non existant global warming. LOL. dribble dribble. You are as stupid as your mate Abbott and his crony 'advisors'.  Australia deserves everything coming its way.  You are sooo screwed.

Sat, 10/11/2014 - 21:44 | 5319492 PT
PT's picture

Australia was Uncle Sam's bitch long before Abbot came to town.

Sat, 10/11/2014 - 19:20 | 5319131 Advoc8tr
Advoc8tr's picture

I think jumping on the Russian sanctions bandwagon was the nail in the coffin ... we've been licking Uncle Sam's balls for decades now.

The latest "sticky" news story over here has been how the huge demand by Chinese investors for Aussie real estate is pushing up house / land prices and making it impossible for new families to get onboard. 

Sat, 10/11/2014 - 16:52 | 5318802 observer007
observer007's picture

Doesnt matter:

***************

8000 Ebola victims

58 now in NZ

Latest:

http://tersee.com/#!q=ebola&t=text

Sat, 10/11/2014 - 17:09 | 5318833 reload
reload's picture

58 screened ...since august

 

NONE INFECTED.

Calm down

Sat, 10/11/2014 - 22:25 | 5319589 7.62x54r
7.62x54r's picture

At least the Kiwis are making an effort to keep that shit off their island.

Sat, 10/11/2014 - 16:52 | 5318805 Carpenter1
Carpenter1's picture

One more pillar taken out in global growth 

Sat, 10/11/2014 - 17:49 | 5318931 Mike in GA
Mike in GA's picture

But on the bright side - the Baltic Dry rate will stay on the down elevator.

 

Wow, I'm beginning to see the "deflation first, then inflation" Mises thesis play out.

 

This and Eboola should make for a GREAT holiday shopping season.

Sat, 10/11/2014 - 18:45 | 5319047 mrpxsytin
mrpxsytin's picture

I agree. There is certainly a lot of deflation happening in Western Australia. 

Sat, 10/11/2014 - 16:54 | 5318808 NOZZLE
NOZZLE's picture

Go put your shrimps on the BArbi, lager louts.

Sat, 10/11/2014 - 21:12 | 5319409 hobopants
hobopants's picture

They're too busy fucking kangaroos for that.

Sat, 10/11/2014 - 16:56 | 5318810 Its_the_economy...
Its_the_economy_stupid's picture

Didn't I read this past week from an Aussie gloating on the Aussiwe dollar vs the FRN.

Sat, 10/11/2014 - 17:15 | 5318843 NOZZLE
NOZZLE's picture

Looks like the Chinese have foreclosed on the White House and tossed the black man on the street.  

<div class="fb-post" data-href="https://www.facebook.com/video.php?v=664751230240461" data-width="466"><div class="fb-xfbml-parse-ignore">

Sat, 10/11/2014 - 17:25 | 5318869 123dobryden
123dobryden's picture

whatta surprise? chineese as always copied russian food embargo template and hit where it hurts 

Sat, 10/11/2014 - 18:12 | 5318985 Buster Cherry
Buster Cherry's picture

That image in my mind is awesome..

Sat, 10/11/2014 - 17:17 | 5318848 gwar5
gwar5's picture

 Bye-bye round eyes of Bondi. 

 

AUS will have to re-assess who they want to be aligned with for the next 200 years. The broken giant of the West or the growing giant in their own back yard?  ChiComs: Who's your daddy now? 

And social justice demands that's what Aussies get for trying to feed their kids by selling all that evil coal.   /s

Sat, 10/11/2014 - 17:53 | 5318947 Rigger
Rigger's picture

Believe me, if it was up to the average, at least half aware Aussie, we would;

 

Nationalise the Gold production

Build ICBM's and nukes

Build a gigantic, fuck off wall around the whole country, and tell the world to go suck a fat one. Immigration only for induatrious, skilled people.

 

We would have enough coal for the next 600 years. They just discovered something like $20 trillion worth of 'easy' shale oil in outback S.A where there is no environment to destroy. We would be set, set I tells you…

 

Unfortunately, our politicians will be falling over themselves to sell it to China for 20 cents a litre, our gas at 6 cents a litre, 600 years of coal out in the next 20, our uranium to anyone who'll take it, our gold at any old price, our best produce if they can get a few extra bucks per ton, and on and on ad nauseum...

 

Pisses me off immensely, our cheap whore politicians and ignorant, apathetic 'citizenry'.

Sat, 10/11/2014 - 18:04 | 5318974 new game
new game's picture

reeking of fascism/so merican-the cocksucking self privledged bastards...

Sat, 10/11/2014 - 18:14 | 5318989 Rigger
Rigger's picture

What, not wanting to offshore our manufacturing base? Wanting to see our resources used for the improvement of our country? Wanting to see skilled, industrious immigration for rebuilding and modernising the economy?

 

Sure, we'll kust be the world's strip mine and farm, see how that one turns out...

 

We'll keep flooding the place with refugees to tale the no/low skill jobs that school kids used to do, see how that pans out.

 

 

 

Moreover, are you an American lecturing on fascism? If so, pot, meet kettle…

Sat, 10/11/2014 - 18:17 | 5318998 new game
new game's picture

sympathy bro sympathy

Sat, 10/11/2014 - 18:48 | 5319057 NidStyles
NidStyles's picture

You old timers really need to catch up with the world. 

Sat, 10/11/2014 - 18:54 | 5319069 Stormtrooper
Stormtrooper's picture

Rigger-

Then overthrow them and install the government that you want.

Oh, yeah.  You gave them your guns.  Good luck!

Sun, 10/12/2014 - 01:38 | 5319250 eXMachina
eXMachina's picture

A common misconception. There are now more guns held by the Aussie citizenry than prior to the '96 buy back. I went to the gun store with my father who's into guns. He ordered a new 9mm Beretta and I got talking with the store keep. He reckons there is a massive shortage of domey shaped lead due to huge demand. If you don't want to wait you can always stock up on .22 ammo. It took close to 20 years but the militia are better armed now than they were before. Gov buyback didn't work only outright bans will truly render the public defenceless.

Sun, 10/12/2014 - 00:34 | 5319820 PT
PT's picture

Oh the gubmint is sneakier than that.  By making aussies really, really poor, no-one could afford to buy any guns any way.  Better watch out - they might try that method in YOUR country.

Sun, 10/12/2014 - 03:09 | 5319924 shovel ready
shovel ready's picture

Amen to that brother.

We grow more food than we need. We have more of everything than we need.

So we sell the 'excess' to foreigners for a few cents per tonne so we can buy iShit garbarge.

We are fucking over our decendents by raping the country so fuckheads can buy crap from Ikea that wont make it home before breaking.

Sat, 10/11/2014 - 17:17 | 5318852 mendigo
mendigo's picture

Got to be consequences.

Sat, 10/11/2014 - 17:19 | 5318859 Fuku Ben
Fuku Ben's picture

China must believe that enough Chinese have emigrated there that they've got a lock on taking over the country

Sat, 10/11/2014 - 17:57 | 5318958 Bazza McKenzie
Bazza McKenzie's picture

They'll have to fight it out with the Muslims.

Sat, 10/11/2014 - 17:23 | 5318867 Slowdrip
Slowdrip's picture

'Climate Change'....

Sat, 10/11/2014 - 17:25 | 5318870 Black Forest
Black Forest's picture

btfcc

Sat, 10/11/2014 - 17:24 | 5318871 Make_Mine_A_Double
Make_Mine_A_Double's picture

If you needed a 'tell' on ChiCom growth stalling this is a pretty good omen. Aussie coal is higher grade purer burn. The Chinese coal the equivalent of burning tires.

I put it down to the Curse of the Olympics. Without fail every country that hosts it sooner or later gets it up the ass.

 

Sat, 10/11/2014 - 17:33 | 5318883 ekm1
ekm1's picture

So, China is refusing energy imports. Wow, wow, wow.

Clear sign they want to reduce industrial output even further.

 

They no longer want to ship real goods to the Western World and get paid with..........(wait for it) ....digital dollars

 

Say bye-bye to Chinese Funded Retirement. Even if retirement age may not be raised, there won't be enough real output for retirees to consume.

Back to work, dear westerners, back to work

 

 

Sat, 10/11/2014 - 17:48 | 5318925 Aussiekiwi
Aussiekiwi's picture

Excuse me!, I'm a westerner, I don't work, just get free stuff, play with my phone and post on FB. 

Sat, 10/11/2014 - 17:52 | 5318941 Winston Churchill
Winston Churchill's picture

Fleeroader.

Sat, 10/11/2014 - 18:24 | 5319008 WillyGroper
WillyGroper's picture

What about their employment and or social unrest in what is clearly a global downturn?

Sat, 10/11/2014 - 21:11 | 5319410 ekm1
ekm1's picture

There has been global downturn since 2003

Social unrest is rampant worldwide and increasingly dangerous in USA now

Eventually people will have to go back to work to eat

Sun, 10/12/2014 - 07:54 | 5320052 PT
PT's picture

They'll have to grow their own food on all that land they don't own.

Sun, 10/12/2014 - 08:28 | 5320088 Sirius Wonderblast
Sirius Wonderblast's picture

Good luck to those thinking kids leaving school would know anything useful like knowing a lathe from a mill, or one end of them from the other. They'll be sitting in the dole queues with their media studies degrees, wondering why they can't get job with their worthless bit of paper.

Sun, 10/12/2014 - 08:12 | 5320067 LostandFound
LostandFound's picture

Living in the desert and relying on 98% of food imports means that the word 'Protectivism' scares the shit out of me..... imagine the major power houses saying 'fuck it' we are keeping within a regional bloc and reducing our international trade.....

Too late to be a farmer at 33yr old?

Sat, 10/11/2014 - 17:40 | 5318899 q99x2
q99x2's picture

We don't use coal in Pennsylvania where I come from. We frack Goldman Sachs contracts and drink poison water instead.

Sat, 10/11/2014 - 17:39 | 5318901 besnook
besnook's picture

this is all part of the greater asian prosperity circle chinese style, the way it was for literally thousands of years before the western meddling in the region. it is otherwise known as fuck the west.

Sun, 10/12/2014 - 08:02 | 5320057 PT
PT's picture

Yep.  I like the way they kept their populace impoverished with fiendishly low wages in order to suck all western technology and manufacturing infrastructure into the region. 

Now I eagerly await as they lower* their minimum wage so their workers can afford to buy all the crap they manufacture and then they won't need westerners at all.  An' to think, no westerners coulda see'd it coming!  Very sneaky of them.

 

*Yes, 'lower'.  Mises Inst. tolled me sew.

Sat, 10/11/2014 - 17:39 | 5318902 Salah
Salah's picture

Payback for all those US marine & naval forces outside of Darwin.  The "pivot" is costly to the host country.

Sat, 10/11/2014 - 17:43 | 5318912 new game
new game's picture

slap, ouch, in the fucking face, said the stunned aussie. those fuckers rugged us again. meanwhile socialist government has ramped the spending to the moon with plenty of new debt to go. yea were ready for the slowdown and hsg crash-tia, rip aussie...

Sat, 10/11/2014 - 17:46 | 5318920 Aussiekiwi
Aussiekiwi's picture

Oh No! what about our black gold we were hoping to leverage our easy lifestyle off for the next 20 years?

If only we had had some sort of Tax in the early days of the commodities boom on overseas companies stripping our resources we could have put money aside for a rainy day, used it for infrastructure etc.

Sat, 10/11/2014 - 18:56 | 5319075 mrpxsytin
mrpxsytin's picture

Like shiny new stadiums and new roads to take the people to their non-existant jobs? Or maybe a massive extension of Canberra so that we can double the federal public service. Productive stuff like that right?

You know the money will only get wasted. Your best bet is to do your own personal saving and aollocate that to productive uses. Our government is totally screwed. I've accepted it.

Sat, 10/11/2014 - 19:27 | 5319142 Advoc8tr
Advoc8tr's picture

Canberra was just voted the most livable city in the world with the highest average wage by the OECD.

100% government town with 100% public service employees ... all paid for with stolen tax money.

What a joke !

Sat, 10/11/2014 - 20:14 | 5319264 mrpxsytin
mrpxsytin's picture

The joke's on you mate!

And to top it off, those bludgers are wanting to go on strike!!

The way I reconcile it is in the understanding that there are no free rides. Those eunuchs in Canberra pay via the continual creeping paralysis of their intellect and reason. They are guzzling the poison and are too ignorant to know it is killing them. A school friend went to Canberra when he was 22 and he is well and truly fucked now. What does it do to their brains?

Sat, 10/11/2014 - 21:38 | 5319474 Aussiekiwi
Aussiekiwi's picture

Not a glass half full sort of guy mrp?

Sun, 10/12/2014 - 00:04 | 5319775 Aussiekiwi
Aussiekiwi's picture

Canberra ....most livable city, LOl, LOL, LOL, rest of the world must be a rat hole.

Sat, 10/11/2014 - 17:52 | 5318944 ross81
ross81's picture

Aussies finally realise that sucking 2 dicks at the same time is problematic.

Sun, 10/12/2014 - 00:05 | 5319778 Aussiekiwi
Aussiekiwi's picture

Ho LE FUK

Sat, 10/11/2014 - 17:53 | 5318948 cart00ner
cart00ner's picture

We have had a 20 year boom on the back of mining and have f-all to show for it. Guess its back to flogging sheep... oh wait we turned all our good farming areas into housing developements!

Sat, 10/11/2014 - 18:35 | 5319024 Squid-puppets a...
Squid-puppets a-go-go's picture

well, not 'nothing'

while our private debt is as bad as anywhere in the fucked up world, our Govt debt is reasonably low as a % of GDP. This puts us in good stead to right the ship (if our pollies stop playing stupid fucking games) when the big reset/financial war happens

Sat, 10/11/2014 - 19:23 | 5319134 ForTheWorld
ForTheWorld's picture

Isn't that Government debt to GDP ratio based in part on Australia selling massive amounts of Coal and Iron Ore to other countries? If China is doing things to slow down coal importation, that then reduces GDP and thus increases the debt ratio.

Sun, 10/12/2014 - 00:02 | 5319771 Aussiekiwi
Aussiekiwi's picture

You can stop being all logical and sensible Fortheworld....thats not helping our delusions down under at all!!

Sat, 10/11/2014 - 20:28 | 5319297 Jack Burton
Jack Burton's picture

How is the Australian water situation in the drier areas of Australia? Can this crimp growth, or is there either a solution, or no real long term water problem down under?

Sat, 10/11/2014 - 21:03 | 5319381 Squid-puppets a...
Squid-puppets a-go-go's picture

weve had the El nino opposite of california - relatively good rainfalls for last few years. In fact we had a few multi billion dollar infrastructure projects to increase water supply that are now lieing idle because of the good rainfalls.  Flooding in some parts is a greater concern of late

Sat, 10/11/2014 - 23:59 | 5319767 Aussiekiwi
Aussiekiwi's picture

and are selling the rest of the Farm land to the Chinese, is that bad?

Sat, 10/11/2014 - 17:56 | 5318955 new game
new game's picture

as merican i can fully understand ass whopping by another government manuver. at least you got resources to export. trick is to use them domestically and make products in australiia. then (advice) slap a tarrif on any fucking thing from china...

that would wake da fucks up? oh and ask them to quite manipulating their currency or you will set a parity adjustment on anything that does enter the country. they are sneaky cheating bastards with full compliance by our merican facist gov...

Sat, 10/11/2014 - 18:06 | 5318980 goldhedge
goldhedge's picture

Why don't you get your guns out and take action against your own facist gov.

You are all talk.  You pu$$y.

Sat, 10/11/2014 - 18:37 | 5319028 NoPension
NoPension's picture

....those guns I saw a photo of? 20 ton dump truck loads being dumped into a furnace for destruction. Those guns?

Sat, 10/11/2014 - 18:07 | 5318981 goldhedge
goldhedge's picture

Why don't you get your guns out and take action against your own facist gov.

You are all talk.  You pu$$y.

Sat, 10/11/2014 - 18:10 | 5318983 new game
new game's picture

yea thats right, go postal. dude nice challenge to us mericans, ha it almost errupted in nevada. stay tuned...

Sat, 10/11/2014 - 19:01 | 5319081 falconflight
falconflight's picture

We're all pu$$ies.

Sat, 10/11/2014 - 18:06 | 5318977 BigRedRider
BigRedRider's picture

 

 

A quick read of the title of this article cause me to think that China was getting climate change fever and was turning a new leaf.

Silly me...

Sat, 10/11/2014 - 18:15 | 5318996 WillyGroper
WillyGroper's picture

will this fat maggot have to live on $2 per day as a result?

Sat, 10/11/2014 - 18:42 | 5319039 NoPension
NoPension's picture

Looked at her. Imagined her lying in a room, on piles of cash, three feet deep. " take me, and it's yours" .
And I still couldn't imagine it.

What a sow.

Sat, 10/11/2014 - 18:42 | 5319040 adeptish
adeptish's picture

Gina "toes first into the woodchipper" Rhinehart.

I'd buy that for a dollar!

Sat, 10/11/2014 - 18:46 | 5319052 Winston Churchill
Winston Churchill's picture

Does she own a brewery ?

Sat, 10/11/2014 - 19:30 | 5319152 shovelhead
shovelhead's picture

I can't imagine what she looked like before plastic surgury.

Sat, 10/11/2014 - 22:06 | 5319544 Vuke
Vuke's picture

Maggot is the perfect word. Good choice Willy.

Sat, 10/11/2014 - 18:39 | 5319031 falconflight
falconflight's picture

Good, news for American coal because now Rio, Bhp, and others can share some pain rather than creating it.  Also, we can get an opportunity to view Australia's pain for allowing itself to become China's natural resources vassal state.

Sat, 10/11/2014 - 18:40 | 5319036 A82EBA
A82EBA's picture

Does this affect us coal?

Sat, 10/11/2014 - 19:36 | 5319173 shovelhead
shovelhead's picture

Gweilo Aussie you make bad friend with gweilo US man.

So solly.

Sat, 10/11/2014 - 20:01 | 5319224 GreatUncle
GreatUncle's picture

Basically all this is is in a joined up interconnected world with such a wide disparity in values YOU CAN'T HAVE FREE TRADE that everybody has been clambering after for the last few decades. Free trade is only economically possible when the difference in this case coal is near equal.

Sun, 10/12/2014 - 03:45 | 5319260 The_Prisoner
The_Prisoner's picture

Putin is coming to Australia for the G20, and all the Aussie "leaders" have gone on record blaming him for MH17.

Watch the Aussie mouth breathers tight their panties in a bunch protesting the attendance of the guy who is currently the only entity preventing the US from unleashing wwiii as an attempt to establish the fourth reich.

Sat, 10/11/2014 - 20:25 | 5319288 Jack Burton
Jack Burton's picture

"crushing Australian (the biggest shipper of coal to China) dreams of a commodity-based renaissance."

"It is game over for Australian coal."

This is a kick in the balls for Australian fantasy as ultimate resource supplier to China. Some huge money has gone into investments in coal sector.

Sat, 10/11/2014 - 20:47 | 5319335 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

short AUD

Sat, 10/11/2014 - 21:25 | 5319441 imbtween
imbtween's picture

Good! That horrible, hideous old slag who inherited a huge company but somehow deludes herself into believing she's some sort of worth-the-oxygen bootstrapping entrepreneur will suffer. The more the better.

Sat, 10/11/2014 - 21:26 | 5319449 imbtween
imbtween's picture

Gina Rinehart. Feed her to the sharks!

Sun, 10/12/2014 - 00:11 | 5319730 Wild Theories
Wild Theories's picture

hey, many sharks are already endangered without you feeding them more trash

Sat, 10/11/2014 - 21:40 | 5319477 Salsipuedes
Salsipuedes's picture

Bomb more shit with them seppos lads! That's the ticket to prosperity! Fair dinkum!

Sat, 10/11/2014 - 22:32 | 5319565 Mediocritas
Mediocritas's picture

For economic, financial and political insights into Australia, I recommend the MacroBusiness blog, which regularly includes ZH references.

http://www.macrobusiness.com.au

They have been way ahead of the curve on coal and iron ore for ages, hilariously poking holes in Oz leadership (public and private) who keep getting it so, so wrong.

Even before tariffs, states like Queensland and West Australia, that are heavily dependent on mining royalties, were screwed by lower prices. Listening to leaders whining, instead of admitting their screwups, has been amusing. Eg:

http://www.macrobusiness.com.au/2014/10/wa-government-slashes-jobs-blame...

-- Western Australia’s Premier has taken a swipe at two of the world’s biggest miners over what he describes as their “flawed strategy” to lower the iron ore price.

-- Colin Barnett said the actions of BHP Billiton and Rio Tinto in “flooding the market” to push down prices in a bid to gain more market share was causing significant pain for the state.

-- The drop in the iron ore price to levels far below what the WA Government had forecast has forced it to implement a raft of spending cuts.

-- Mr Barnett said mining companies had a social responsibility to the people of WA.

-- “I think it is flawed in terms of trying to manage the world price of a commodity,” he said.

-- “When anyone has tried that, whether it be minerals or agriculture or anything else, it usually ends in tears and right now there are tears within the West Australian Government.

-- “This seeming strategy of the two major producers to flood the market and force the price down, I mean, remember who your landlord is. That’s hurting Western Australia.

"What a wanker!" (quoting MacroBusiness). This guy sucks corporate dick for a living, stomping all over local democracy like a tyrant to give the companies their way, then when they stop dropping him crumbs from the table he cries about it. Wanker indeed.

Then here's the Federal Treasurer (major neoliberal bankster-loving asshole, married to a senior executive at Deutschebank) demonstrating his head being firmly buried in the sand:

http://www.macrobusiness.com.au/2014/10/hockey-holds-fast-to-sell-em-dirt/

-- …“The bottom line is the world’s going to want commodities because of the emerging middle class, particularly in Asia but also in Africa and various other ­places,” Mr Hockey said during a panel discussion hosted by the International Monetary Fund.

-- “I don’t think there’s any commodities (downturn) — I think that’s market trash. I think we’ve got to deal with the reality of where the world’s going to be in the next 30 years. They’re going to want commodities.”

-- …Indonesian Finance Minister Muhamad Chatib Basri, an economist and former trade consultant, said…his country had to invest more in manufacturing rather than depend on resources for two-thirds of export revenue…“I do believe that the resource boom is over,”

-- South African Finance Minister Nhlanhla Nene backed the idea of preparing for change by shifting into processing rather than exporting raw materials.

-- …Nigerian Finance Minister Ngozi Okonjo-Iweala, an economist and a former World Bank managing director, concurred.

-- Mr Hockey said the dour forecasts did not take into account the long-term demand from the rise of a prosperous middle class in Asia. “I don’t buy this argument that the commodities boom is over…he wanted China to build more infrastructure and noted that Indian leader Narendra Modi wanted to raise $1.1 trillion for new infrastructure over the next four years.

Houses and holes (banking and mining), where banking depends on leveraging mining: that's the current Australian economy in a nutshell. A prolonged downturn in Chinese ore demand and Oz is screwed. That's what you get for signing on to globalistic neo-liberalism, over-specialising and killing off the rest of the economy. Should have nationalised and built a sovereign wealth fund like Norway did to avoid its own Dutch Disease ( http://en.m.wikipedia.org/wiki/Dutch_disease ). But no, Oz prefers to import policy from US/UK rather than Scandinavia, now they pay.

Sat, 10/11/2014 - 23:23 | 5319717 Wild Theories
Wild Theories's picture

Aussie politicians, they are such a special breed.

Sun, 10/12/2014 - 07:47 | 5320045 TheCosmicTaco
TheCosmicTaco's picture

Smarter things than most Australian politicians quite regularly fall out of the back of dogs.

Sat, 10/11/2014 - 22:48 | 5319648 websitefound
websitefound's picture

China is complaining about another country flooding it's market with cheaper stuff.  Well fuck me if thats not the pot calling the kettle black.  Sick to death as an Aussie as us being the only country playing by the "free trade" rules.  Simple solution to this tariff, I wont be buying any china made products.  

 

This is a big mistake by China, and it's forgetting how much it is going to need us as a food supply in the coming decade.  Europe and U.S wont be able to afford to buy all their crap anymore, China needs to be careful playing protectionism policies as it has far more to lose if the West starts to protect its own manufacturing.

 

In my opinion this policy has come from Putin and is in direct response to us bombing Syria/Iraq.  Australia needs to ramp up defence because we will eventually end up in war against China.

Sat, 10/11/2014 - 23:30 | 5319727 Aussiekiwi
Aussiekiwi's picture

Nope, China is not forgetting about the Food supply problem, which is why they are happily buying up Farms in Australia, soon your grown in Australia produce will first of all have been sent to China for processing and then you will import it, most of the important realestate in Australia will also be owned by the Chinese.

China does not need to go to war when it can just slowly buy australia up one critical industry at a time.

Sat, 10/11/2014 - 23:59 | 5319766 Mediocritas
Mediocritas's picture

Yep, and Oz govt is falling over itself to make that happen. How long again since there was an FIRB prosecution for foreign investors violating the rules? Eight years!

http://www.macrobusiness.com.au/2014/09/8-years-and-not-one-firb-foreign...

Please disperse. Nothing to see here: https://m.youtube.com/watch?v=rSjK2Oqrgic

Sun, 10/12/2014 - 00:03 | 5319774 websitefound
websitefound's picture

Agree which is why we need a foreign ownership register in Australia quick smart.  They are also clueless how to farm in a sustainable way, which is critical to farming in this country.  Oz will buy back these farms once China economy comes crashing to earth.  Remember 80's everyone thought Japan was buying up Australia and look how that panned out!

 

Sure India & Japan wont say No to our cheap coal and taking over manufacturing from China.    The Chinese advantage of cheap labour is being whittled away as energy/resources becomes the biggest cost driver in manufacturing and not labour.  China makes up 20% of our coal exports so we will be fine to keep digging.  We should however urgently limit foreign ownership in mines/farms!

Sun, 10/12/2014 - 02:33 | 5319908 Aussiekiwi
Aussiekiwi's picture

yep, could not agree more.

Sun, 10/12/2014 - 04:34 | 5319957 RadioactiveRant
RadioactiveRant's picture

China can buy all the Aussie farms it likes, if it advocates protectionism the Commonwealth can just put an export tarrif on the food produced on them and keep the food in Oz at supressed prices.

Sun, 10/12/2014 - 04:31 | 5319955 RadioactiveRant
RadioactiveRant's picture

I've been trying to avoid Chinese rubbish for a while (the quality is terrible), its almost impossible. Try buying a kettle made in a country with a minimum wage, or a pair of jeans that aren't made in a country with child labour.

Sat, 10/11/2014 - 23:40 | 5319744 PeaBird
PeaBird's picture

Time for Australia to up tarriffs on Telecommunication Equipment/Parts and Computers. The two biggest line items on Australia's imports from China. If China slaps imports on iron ore next in a tit for tat, then the next item Australia can slap import tarriffs on is Clothing Merchandise. Or, how about slapping a "special fee" on Chinese acquisitions of Australian Gold mines? We all know how much the Chinese love their 'olde yella". Or Chinese acquisitions of any tangible wealth in Australia? Farmland? Water resources? Mines of any type? Rare Earths?, etc...

(With tongue firmly in cheek)...If we are going to kill global trade, we might as well do it properly !!!

Sun, 10/12/2014 - 00:06 | 5319779 Mediocritas
Mediocritas's picture

How's it going to go down with boomers (dominant voting bloc) when China steps off the property bid and housing tanks?

Sun, 10/12/2014 - 00:08 | 5319780 Aussiekiwi
Aussiekiwi's picture

But, But, But, that would not be free trade?

Sun, 10/12/2014 - 00:11 | 5319786 websitefound
websitefound's picture

Don't like our coal?  we should export them Uranium from Roxby Downs, wrapped in some iron ore and sent special delivery from Pine Gap.

Sun, 10/12/2014 - 04:21 | 5319952 RadioactiveRant
RadioactiveRant's picture

I'm game for trade war, I've got all the iCrap and clothing I can stack. All our Geniuses and nail bar technicians will have to learn how to do something productive.

Let the PRC deal with a billion unemployed gooks while Russias new best buddy tanks.

Sun, 10/12/2014 - 00:27 | 5319805 natty light
natty light's picture

Steel coming out of their ears might have something to do with it.

Sun, 10/12/2014 - 04:53 | 5319969 hedgiex
hedgiex's picture

When you have concentration of demand from a debt inflicted nation like China...protectionism is obvious. When you have dependence on this demand for a commodity unlike oil less influenced by other geopolitical and global economics, you obviously need to avoid investments (not trading).

Game is not over for Australia, just watch for subsidies to match protectionism elsewhere. That's the game for free markets under captivity for all past developed economies.

Good for trading in that volatility that emanates from "no price discovery" in the markets of secondary commodities. You bet that the 1% is already in this space while their muppets hang on to spins of global free trade flows. Any novice trader today knows it.

Sun, 10/12/2014 - 06:52 | 5320011 TheCosmicTaco
TheCosmicTaco's picture

Fuck those stinking Chicom bandit assclowns.

Sun, 10/12/2014 - 12:40 | 5320913 SoDamnMad
SoDamnMad's picture

Couldn't we just wait for the Honk Kong massacre and then have all the longshoremen refuse to unload Chinese ships. Have a couple rehearsed fights (hire the wrestling professionals  with some dressed up as cops) and demonstrations demanding we slap a $100 levy on iPhones and crap.

Sun, 10/12/2014 - 13:03 | 5320996 quadratic_equation
quadratic_equation's picture

Impose tariff on Chinese imports as well in retaliaton.  Start a new trade war and demolish the free trade that's killing all the industrialized countries making them all dependent on Chinese goods.  Let's restart our own manufacturing industries again by imposing tariff on all imports including computer software work that were outsourced.

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