“An economic rule states that one should never underestimate the inability of free marketers to use common sense,”
K J Galbraith 2006. Lincoln Journal.
One of the interesting aspects of the current debate on the behaviour of China towards Australia, after Australia asked for an enquiry into the source of Covid19, is that many of those who are well known as journalists and commentators, and even some hopelessly naive Australian politicians, and we have our share of them, have shown most clearly that they know little to nothing about the art of negotiation or as many of us know it by another name ‘bloodless warfare.’
It is well known that when it comes to selling their wares farmers around the world are weak, some weaker than others. It is also well known and oft quoted the statement by President J F. Kennedy “The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways.” These days we would say ‘person’ but the statement remains correct. The question is what have farmers done, particularly in Australia, to redress what is an iniquitous situation?
Since I started this look at China and our reliance on them for some of our vital goods and equipment, as well as our reliance on them to buy our raw materials like coal, iron ore, beef and wine; the relationship between Australia and China has deteriorated considerably.
The outburst by the Ambassador of China, threatening our beef, wine and tourism relationships, simply because our government made a valid request that a pandemic that has brought this world into lock-down should be investigated and the source found, was nothing short of Imperial bullying from the Middle Kingdom.
The United States sent its war ships into the South China Sea a few days ago. Whether in retaliation or not, reports are that China has sunk a Vietnamese small boat, probably fishing; has rammed boats from Malaysia and locked its radar onto a Philippine warship, which is hostile and usually means you are about to be fired on.
This means that China is quite prepared to escalate tensions in the South China Sea in an effort to distract the world away from asking the question China must answer regarding the origin of Corvid19 from Wuhan.
It must be determined whether Covid19 came from the wet market, or escaped from what appears to be a very insecure laboratory in Wuhan. China owes that information to the world.
In 2018 Australia imported goods from China to the value of US$57.7 billion or A$77 billion with an average exchange rate of .75 That is nearly $1.5 billion a month, every month.
It came as a shock to almost everyone to learn recently that we import over 90% of the medicines we use and most of them come from China and America. If China doesn’t make the final product they do make many of the ingredients. This alarming fact may never have come to light without the outbreak of the COVID19 corona virus. If China stopped supplying us and or America with medicines, what would we do?
We no longer live in a world of ‘It can’t happen here’ Because we know it can. We rely on China for so much; over US$13 billion in electrical goods — that must be most of our TVs and phones surely? Is this a danger to our independence and sovereignty?
I wrote last year about the alarming and strategically dangerous state of our national fuel oil reserves, in as much as we hardly have any. Bill Shorten the Leader of the Opposition in a recent speech told his audience that, “Right now, we have just 23 days of jet fuel, just 22 days of diesel and only 19 days of automotive gas.(petrol)” He added that when Prime Minister he would fix it. The Prime Minister, Scot Morrison, has not mentioned the problem, maybe he doesn’t want us to know?
Both of our would-be leaders are more interested in the show-time of denigrating each other and so winning the upcoming election — the security of the nation runs a distant second to getting their hands on the keys to The Lodge and even better, Kirribilli House.
It came as something of a surprise to me the other day when I realised that my wife Lynne and I have lived in Australia for over fifty years — half a century! Most of that time in Western Australia.
As I write, it is Australia Day. For some there are parties and fireworks. For others there are protests, rallys and marches because they believe that today should be a day of shame, because it is the day that the British stole Australia from its indigenous people.
Australia Day is often heralded by ads about lamb and barbies being ‘Australian’. But what does it actually mean to be Australian? I am half Warlpiri and a mixture of Irish, Scottish and Welsh. My sons are of Warlpiri, Irish, Scottish, Welsh, Malay, Indian, French, African, Chinese, Scandinavian and German ancestry. My stepson is half Scottish and a quarter Mauritian. They are all 100% Australian. My husband and stepfather of my children is Scottish but calls himself a ‘Scaussie’. What we all have in common is a love for this multifaceted and beautiful nation.
My great grandfather’s grandfather was convicted of ‘robbing a soldier of his arms’, in 1832 in Kilkenny at the age of 21. He came as a convict in 1833. He was an Irish patriot fighting for his faith and people. In the current political climate I would not be expected to acknowledge and celebrate his life because I have a Warlpiri mother. Most of the self-identifying indigenous members of our community who claim to feel hurt by Australia Day being held on the January 26 would also have white ancestors in their family trees and may not even have been born if the First Fleet hadn’t come.
It’s time to talk seriously about re-structuring the wheat industry in Western Australia and probably Australia. It’s time that wheat growers demanded recognition for the contribution they make to the national economy. When was the last time you heard the Prime Minister or the immediate past minister (Barnaby) or the current Federal Minister for Agriculture, or even the current crop of state ministers talk about the financial health of the producers of Australia’s biggest cash crop?
It’s time that the wheat industry faced reality, the bureaucracies they fund have failed them. Have a look at what Negative Profit means, it’s a euphemism for loss; then read on and tell me what you think, tell me if I am wrong in calling for change.
I blame politicians and their apparatchiks for my ever-increasing sense of despair regarding the future of this country and its agriculture. The evidence is clear and apparent. We are in debt up to our eyeballs and we shouldn’t be. We are a country rich in valuable natural resources from which we, the people, gain little benefit. We are rich in coal and gas and we have an power crisis for which we the people are paying dearly. Astonishingly, we continue to pay billions of dollars in subsidies to so-called renewable energy companies to generate the power we need, yet, even more astonishingly, we have failed to understand that when the wind doesn’t blow and the sun doesn’t shine, they don’t generate power. To add insult to injury the wind turbines and the solar panels used in this massive ‘con trick’ are imported, mainly from China.
In his first one hundred days in office the President of the United States has done something which the governments of Australia have been too frightened to do in a thousand days. The big message from the White House is that agriculture is important to America — the big message from Canberra is that agriculture isn’t important to Australia.
Sure, the Deputy Prime Minister of Australia is proud of agriculture’s contribution of $54 billion to the national economy. What he refuses to discuss in public is the lack of profitability for many of the producers who contribute to that $54 billion. He avoids discussing the ever increasing damage being caused by rural debt, low commodity prices, a poor and outdated infrastructure and a banking sector out of control.
President Trump, as one would expect coming from the dog eat dog construction and real estate industry in America, obviously knows the difference between strategy and tactics. Love him or hate him, respect him or despise him, he has achieved what many believed was impossible. The evidence is that both the Coalition and the Labor Party and all those strange individuals who nobody voted for, who spend their time scampering around the dark corners of Parliament House ‘currying favour’ and ‘horse trading’ with the future of this country, are all providing irrefutable evidence that they are seriously deficient in the strategy department. What they all have is a grab bag, a lucky dip of tactics. We are now running the country with party games. God save the Queen because nothing can save Australian politics.
About 2,500 years ago, Chinese military strategist Sun Tzu wrote “The Art of War.” In it, he said, “Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Barnaby Joyce could do worse than take a page out of Donald’s book — we’ll overlook plagiarism just this once. Look at what the President has asked the new Agriculture Secretary to do in the next 180 days. That is a business man speaking, bringing hard nosed business into politics. Will it work? Only time will tell.
Why do we put up with governments who do nothing for our national security?
It is Friday March 3 2017 at 08.00 hrs. On ABC AM this morning at about 10minutes 29 seconds into the programme, Andrew Davies from the Australian Strategic Policy Institute, announced we only have about three weeks supply of petrol in store in Australia — three weeks!! (search in the archive for the AM programme of March 3, otherwise you will get today’s programme) He raises the possibility of any tension between America and China could close off the sea route through the South China Sea and so cut of our supply of fuel from Singapore, on whom we are almost totally reliant. The story gets worse because it is not a new problem, there is a story in The Conversation from 2013 which forecast an impending fuel supply crisis unless the government of the day took strong action. It didn’t happen. The point needs to be made made it wouldn’t need a full blown war to disrupt fuel supplies, just a disagreement between the world super powers and the shipping routes that service Australia could close and we would run out of not only fuel but everything we import by sea.
In this issue I republish the simple truth from a leader in Australian grain marketing, Mr Palmquist from GrainCorp. He confronts us with the unpleasant reality that an antiquated infrastructure is being paid for by grain growers and I suppose by definition he is saying the only ones paying, are the growers. An expensive infrastructure, together with the poorest world wheat prices for more than a decade are wrecking the budgets of Australian wheat producers. This grain trader says he has no option but to pass the costs on to the grower — he would say that wouldn’t he? He only has to answer to shareholders — growers only have to answer to the bank. As an example he claims it’s cheaper to move grain from Ukraine to Indonesia than it is to move it 350 kilometers from Swan Hill to Geelong.